03/11/2023 – 13:03
The rewards system – also known as Reward System – aims to encourage its employees to achieve the company’s goals and therefore be valued. Therefore, this system directly reflects on the organizational structure and results of your business.
Amidst so many changes in the modern world, the job market is experiencing moments of great transformation, surrounded by theories and paradigms about how one should live, work and manage. Therefore, organizations are adapting to an environment in which the advancement of technology and the development of human knowledge are not enough to be successful.
According to writers Megginson, Mosley and Pietri Jr., from the book “Administration, concepts and applications”administrators have the role of studying the organization to provide their employees with an environment that motivates them and consequently stimulates them in the search for better performance.
In an organization, it is not enough to just have or be a good administrator, the success of a company depends significantly on its team. And with the system, people understand that to achieve rewards they must strive in such a way.
Measuring the objectives and metrics established by the company makes it possible to implement reward systems, as well as evaluating the profile of the company and employees to define which of these systems is the most appropriate to be used. In general, the objective of the reward policy is to link individual interests and those of the company with each other by rewarding employees for actions that benefit both parties.
The practice of rewards linked to production, goals achieved, sales, creativity and innovation are a very common reality in countries with more flexible labor legislation and companies with a well-defined level of maturity and organizational culture.
In Brazil, we found that this practice of rewards linked to sales commission is very different from the topic we are dealing with here. Here we talk about the employee feeling like an integral part of the whole and thus committing to the company’s objectives.
How to reward your employees?
There are several ways to commit, reward, and reward your employee, from public recognition, time off, awards, career planning, to horizontal hierarchy, flexible working hours, PLR system or bonuses.
A modern way to encourage your employees is to change the traditional culture we are used to, encouraging creation without punishment for errors, an organizational climate, interaction actions between employees and their families, hybrid working hours, freedom to work and develop and Employees themselves encouraged to train their colleagues.
Companies need to evolve the maturity levels of their processes, their organizational cultures and the recognition of their employees in order for us to be successful. It is very important that the company’s wishes are disseminated and explicit to all employees, with measurement and monitoring metrics and clear and agreed recognition rules.
In Brazil, we have labor legislation that makes it difficult to pay variable remuneration, often inhibiting companies from implementing this system for fear of labor or even tax actions.
Even with these challenges, we strongly believe that this is the best employee motivation and engagement system and its basic premise is agreement, everyone’s understanding of what the company expects of them and, if they achieve it, what they will gain. This practice is very important to align everyone’s expectations and create an environment with a common goal.
*This text does not necessarily reflect the opinion of IstoÉ.
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