Question

What is reward structure and motivation ?

Answer 1

The reward structure refers to the system which an organization uses to reward its employees when they outperform on their duties or successfully complete the projects. The rewards structure is a means to make the employee more loyal to the firm and be more responsible simultaneously. Motivation is, on the other hand, the desire to do a specific task more so that it is not merely a task. The desire can be driven out of passion or a reward which might be associated with it. There are many reward systems used by different firms in order to motivate the employee so that they become profitable for the firm and perform well on the job.

1. Monetary incentives: This reward option is most often seen in sales teams when an employee is given a monetary incentive over and above his salary when he overachieves his targets monthly. These incentives can be given quarterly or annually also based on the employer’s policies. There is a specified incentive slab which tells about different incentives attached to different levels of target achievements.

2. ESOPs: Employee stock ownership plans (also called as ESOPs) are a way to reward senior management employees for their superior performance on the job. In this system, the company rewards the employee with the ownership shares of the firm.

3. Leaves: The company can also offer the paid leaves to its employees and reward them. This option is also a common way to reward the employees by the firm.

4. Holiday Trips: There are many contests which keep on being floated in the teams which ask the employee to reach a specific target and avail a company-paid holiday to a holiday destination. These options are lucrative for employees as well.

5. Promotion: Companies also reward their employees by promoting them to leadership positions and giving them a pay hike in order to motivate them.