Question

You are Chairman of a real estate business in your country. What rewards system aside from an agreed minimum salary would you establish for your realtors? What factors need to be considered in order to ensure that the reward is fair for all realtors?

Answer 1

Answer :

Following Rewards System to be Established for Your Realtors

1) Perquisites & Allowances

Perquisites and allowances like car allowances, rent free accommodation also act as a motivating factor for the employees because they provide them the benefits.

2) Bonus

It is rewarded for high performance of the employees which may be paid in cash or any other form.

3) Productivity-Linked Incentives

Under this reward system, productivity linked incentives like commission are paid in addition to base or minimum salary, which directly relates rewards with performance.

4) Non-Monetary Incentives

Various non-monetary incentives like active employee participation and empowerment can be encouraged in organizational matters in respect of decision making so that they feel empowered in the organization.

Following Factors to be Considered to Ensure Fairness of Rewards

1) The top management should commit itself to the reward system which is to be implemented in the organization by properly formulating a policy document stating its commitment and intention.

2) The reward system should cover all the employees and give equal chances to all the employees to earn rewards.

3) There should be consistency of the reward system or incentive plan with the corporate culture of the organization.

4) Proper communication needs to be there across the entire organization with respect to installation of the reward system.

5) There should be clarity in setting performance criteria and standards for the reward system and should in line with the overall strategy and objectives of the organization.

If ur satisfied with Answer , please upvote.