Remuneration And Rewards Management

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Report On Remuneration And Rewards Management

Executive Summary

Remuneration and rewards management, whereby organizations distribute various types of incentives for employees, whether in the form of direct or indirect monetary or non-monetary rewards, according to their contribution, which is also an important part of encouraging employees to work at their request to achieve these goals. The financial rewards departments – increases the effectiveness and overall effectiveness of the organization by developing a system designed to reward employees of the organization based on their contribution to the organization. Rewards increase compassion and Employee loyalty to the organization. In this report, the analysis of the employees has been made for the MB, and recommendation and implementation plan has been made to increase employee finance rewards, keeping the expenditure of the company to a minimum. The banking sector is one of the largest industries in the UK, employing about half a million people, but it is also one of the most innovative industry, through the introduction of new technologies and business practices. The financial reward is often an integral part of the staff incentive program. The employee is provided at the end of the calendar year, thanks and rewards for twelve months of hard work, hoping to motivate them to work.

Introduction

While the company policymakers are trying to understand the main sources of the recent financial crisis, efforts are being made to develop effective policies to prevent future crises, focusing on the compensation of managers and non-executive employees in institutions. The financial design of the mechanism is based on the idea that the rules should be “compatible with incentives”, i.e., that the provided rules should direct the people’s natural personal interest towards the institutional goal. Otherwise, people tend to not enjoy their job, and leave the organisation, or work with less dedication. System for designing a mechanism is especially important for stimulating rewards programs. The same term is reflected by the compatibility of incentives. Regarding policy measures, we note that if policy-makers believe that the above decision (the introduction of financial reward programs by banks that vary depending on the compensation structure) is unreasonable or impractical, it may be useful for the ordinary government to more directly compensate the bank.

Remuneration And Rewards Management

It should be emphasized that the simple structure, like all economic models, is a very abstract version of reality. The motivation of employees depends on many factors besides financial compensation. For example, when determining financial rewards systems, bankers and managers consider factors that were not considered in our analysis. However, we believe that this analysis will be useful for redesigning compensation systems in the financial industry.

The Bank’s goal of maximizing the expected profit is limited by the fact that its employees must be motivated to work in the Bank. That is, employees have their own goals and own means to achieve them. They can choose a bank job or find another profitable opportunity to work. If they take on the bank’s job, they can actively seek investment opportunities (as the bank wants) or simply promote bank policies with non-risky Treasury bonds, with modest performance (which means less work). If they are looking for investment opportunities, they can decide whether they will promote any opportunity they find.

Best Practice of Similar Organizations

The banking sector is one of the largest industries in the UK, employing about half a million people, but it is also one of the most innovative industry, through the introduction of new technologies and business practices. For example, the Royal Bank of Scotland (RBS) has offered employees a flexible benefits scheme for nine years, and Lloyd is proud to offer all employees the opportunity to apply for flexible work, which is an obligation that goes beyond the basic legal requirement. Although both retail and investment banks are generally satisfied with the feasibility work for the provision of a package of personnel benefits, there are some interesting differences between the two sectors in terms of their approach and the choice of benefits.

Most retail banks have closed their specific pension plans, for new participants in favour of a particular contribution scheme. Banks also offer a wide range of benefits, including private health insurance, life insurance, company cars, share plans, accident insurance, work cycle programs and childcare assistance. Outside the retail banks of the Big Five, including HSBC, RBS, Barclays, Lloyds and HBOS, the range and level of benefits provided can vary. At the national level, it is one of the most famous in the field of innovation in providing benefits, but other banks are quickly recovering. For example, the National Bank of Australia Group (which owns banks like Clydesdale and Yorkshire) recently launched a 10,000 employee scheme in the UK that helps recruit and retain staff. The plan provides employees with voluntary access to discount banking products, IBP, a salary plan, health benefits and discounts from large street retailers. With many benefit plans in the banking investment sector, banks should become more creative in finding new opportunities to add to their groups. Although the banking sector has a relatively broader view of the provision of benefits, its adoption of flexible benefits is not yet comprehensive. Less than a third of respondents in the Mercer Benefits Survey in the UK financial services sector in 2007 showed that flexible benefits work. According to him, such plans give rise to interest in a wider range of concerns. In the field of investment banking, the quality was advertised by Grass Roots saying: “this tendency of people to change their jobs, which means that it is important for employers to provide the same package as its competitors”.

In the retail banking sector, flexible compensation schemes have been used to be a safe way for banks to differentiate their bids from the competition. But now that Flex is more common, it becomes increasingly difficult for employers to single out their benefits package, especially when, like RBS, this plan has been in effect for almost ten years.

Investment banks face the same problem, creating a package of compelling benefits, such as wages and remuneration to employees. However, it can be said that this is more difficult, considering that the average base salary is 51,707 pounds sterling, according to the monitoring mission of Morgan McKinley, published in London in August, bonuses can be more than six figures. The benefits are rarely a decisive factor in making decisions about employment, as opposed to the salary or potential remuneration of a candidate. But in general, as soon as a bank employee has worked with a package with a good bonus, they usually expect a similar level of bonus, if not more, in another bank.

However, recent turmoil in the financial markets due to the financial crisis led to rumours of layoffs, and it can be said that employees are no longer able to withstand the most sensitive points of their group. However, in addition to this development, employers are still trying to attract or retain the best talent. As it happens, in financial services, the level of remuneration at stake is much higher than in other sectors.

Morgan Stanley uses its benefits package for a competitive advantage and has responded to staff requests for more family-friendly options and policies. For the past 13 years, Fajr Nicholson, Executive Director for Human Resources for Europe, the Middle East and Africa at Morgan Stanley, has worked in investment banking. The number of benefits provided to staff has increased. “When I joined Morgan Stanley, the three main classic benefits were risk coverage, pensions and health benefits,” she says.

Since then, the investment bank has expanded its offer to include on-site medical care, emergency care near the site, coupons for childcare, the work cycle, a new pension plan (last year introduced in response to simplifying pensions), gym membership and various Initiatives in the field of health and well-being.

Morgan Stanley is one of the growing minority investment banks that offer a flexible profit plan. On the other hand, the benefits are provided in addition to the salary of 6,500 employees in the United Kingdom.

With 110,000 eligible beneficiaries, the benefits of the Royal Bank of Scotland (RBS) scheme are among the largest in Europe.

When RBS introduced its first flexible system advantages, RPLECT, in 1998, 17,500 employees were eligible to participate. Now 110,000 employees in the UK and Ireland have the right to participate, and the program was very successful, that the bank implements them in some foreign operations.

Under the plan, employees can access a wide range of entertainment, lifestyle, well-being and protection. Staff also receives some basic benefits, such as vacation pay, life and disability insurance, and an employee assistance program (EP).

Analysis and Discussion

Retail bankers believe that many goals need to be met. They believe that performance was dedicated to good customer service. Most bankers consider their work “complete” in the short term. Few people see a career in MB.

Almost all employees who are engaged in processing said that work is with much pressure and as an order. Some who made phone sales were more positive.

Sales representatives are happy to work for MB and have a good level of job satisfaction. The marketing manager received a very high rating. The sellers believed that their salaries were just mediocre.

Information technology personnel working with MB benefited from their work and saw the potential of new developments in technology. They felt the salary of the IT staff is more, who believed that they had a higher base salary than they did.

Some employees complained about the long hour’s culture. All said that workers in similar positions in other organizations are paid more and receive much higher rewards.

Employees had devotion towards MB. Everyone wanted to stay in the investment banking sector. High-performance staff felt that they could get a better job elsewhere. Concern was expressed about the impact of the UK withdrawal from the EU and the location of the investment bank.

Most of the graduates said that their preparation for MB was good. Everybody wants to develop their professional skills. Many graduates viewed investment banking as their ultimate goal, although they knew very little about their activities.

Recommendations

Monetary managers often use money as a way to keep employees engaged in enthusiasm and engage in business. It provides an annual bonus, for example, as an incentive for staff to encourage employees to perform their duties consistently.

This financial reward is often an integral part of the staff incentive program. The employee is provided at the end of the calendar year, thanks and rewards for twelve months of hard work, hoping to motivate them to work.

There are many reasons why financial incentives as incentives for employees are less effective:

  • Loss of value: an annual bonus only comes with the work of some employees. It is often considered included in the benefits of the company.
  • Refusal: workers usually have to wait until the end of the year to get a reward, which means that any impressive work performed in the middle of the year cannot be rewarded in the same way and promptly.
  • Low impact: remuneration is often simply transferred to the employee’s monthly payment package, not delivered to them, and quickly absorbed by daily expenses. A good factor can be a feeling that gives a short-term or lost reward, as a result.
  • Non-personal: financial reward is common and unimaginative. Employees often receive the same amount at the same time, so they can not feel individually valued.

Companies should be more creative if they want their employees to encourage employees to be valued and valued, and get the best of them instead.

Provide employees with several notable awards, such as tablets and smartphones. Sports equipment, such as golf clubs, trade coupons and jewellery, can have a greater impact on employees. The bank can even offer holidays and incentive flights, which include from the British weekend to the destination for long distances.

Rewards like this can serve as an incentive for employees who make employees value and appreciate more: every time they use their smartphones, they are rewarded with positive thoughts about work.

The company can also create its own rewards catalogue to offer something to everyone in the company team. Employees can browse the catalogue and choose the product that appeals to them most: the more reward the reward, the harder it will work to get it, and the more likely they are to be grateful for its receipt. When it comes to keeping the best people and keeping them out of the paw of their competitors, there’s nothing better like upgrading, a completely new office and an increase in salaries. But, in the end, throwing money to the employees is not always the best solution, especially if the budget is not available. Because there is not always an opening at the highest level, which means that employers should think about different ways to keep employees motivated and be creative with the reward of their employees.

As a manager, they strive to ensure the loyalty of a talented team and keep them nested in your organization for as long as possible. There are always ways to reward your employees and thank your employees for their contributions, and not all that is related to the bank’s break. Let’s face it, everyone loves free advertising: we all appreciate the small additions added to the regular package of payments and benefits.

Perhaps you will not be enough for your team to be happy in the long term if it did not have a real chance of promotion, but these benefits can help create a positive working environment and improve the morale of the staff.

Creating a strong team culture and a positive working environment will be of great importance for improving the lives of your employees in the office. Employees are likely to be productive team members, often recognition and daily rewards can make a big difference in whether a worker decides to switch to greener pastures. Therefore, you should think about what you can do to reward your employees and make the lives of the bank’s employees a little richer, even if you cannot offer them more financial rewards.

Taking the time to determine the rewards for your employees, you indicate that, as a company, you have a great interest in your workforce and you want to interact with it individually.

Implementation

Awards can also be individual or individual gifts, so that employees feel recognition and value on an individual basis, helping to build relationships between employees and managers.

Employee incentive programs, such as point-based programs, involving an employee who receives a specific grant, if they collect a certain number of points over time, can also be used to encourage staff to fulfil their goals. With such schemes, an employee can feel connected with their company on an emotional level, rather than just a small part of a large company. Sports fans feel very high after being rewarded with a set of personality clubs, while the fan technologies feel valuable and motivated to work after collecting enough points to get an iPad to it. Unlike bonds that have just been transferred to a bank account of an employee, an employee can receive his reward at work and in front of his team. This highlights your achievements for other employees, demonstrating what can be achieved if you also work hard. When it comes to attracting and motivating employees, companies should think about investing in specific rewards rather than giving money to improve staff performance and achieve long-term profitability.

Remuneration And Rewards Management

 

Conclusion

From an example taken from national and international companies, we see a strong relationship between the remuneration and productivity of the organization. This strongly emphasizes the importance of the remuneration system in the current labour market. Therefore, bonuses play an important role in ensuring that the organization remains competitive and productive. Rewards increase employee motivation and job satisfaction, which in turn leads to the profitability of the organization. Reward systems come from motivation theories, and experimental research evaluation strategies will influence employee motivation for work. Two of the most common theories that discussed a career include Maslow and Herzberg. Maslow says that the needs of a higher order become more important gradually, satisfying the needs of the lower order (Pratton & Gold, 1999). Herzberg showed that staff motivation is an important source of satisfaction when it comes to the form of remuneration (Pratton & Gold, 1999). Although remuneration can have some negative consequences for the organization, with the proper planning of the reward system and recognition, I firmly believe that the advantages of this system will certainly outweigh the shortcomings. Therefore, we see that bonuses play an important role in managing the changes in culture in companies operating at the national and international levels.

References

Armstrong, M 1999, A Handbook of Human Resource Management Practice, 7th edn, Kogan Page Limited, The Bath Press, Bath.

Armstrong, M & Murlis, H 2007, Reward Management: A Handbook of Remuneration Strategy and Practice, 5th edn, MPG Books Ltd, Great Britain.

Bratton, J & Gold, J 1999, Human Resource Management Theory and practice, 2nd edn, Macmillan Press Ltd, Great Britain at The Bath Press, Avon.

Danish, RQ & Usman, A 2010, ‘Impact of Reward and Recognition on Job Satisfaction and Motivation: An Empirical Study from Parkistan’, International Journal of Business and Management, February, vol. 5, no.2, pp. 159-167, viewed 9 August 2010, Proquest Database.

Heracleous, L, Wirtz, J & Pangarkar, N 2006, Flying High in a Competitive Industry Cost-Effective Service Excellence at Singapore Airlines, Mc Graw-Hill Education (Asia), Singapore.

Khan, KU, Farooq, SU & Ullah, MI 2010, ‘The Relationship between Rewards and Employee Motivation in Commercial Banks in Parkistan’, Research Journal of International Studies, issue 14, pp.1-18, viewed 16 August 2010, Proquest Database.

Nelson, B 2003, ‘Five Questions About Employee Recognition and Reward’, Harvard Management Update, September, vol. 8, issue 9, p. 3, viewed 9 August 2010, Proquest Database.

Wirtz, J, Heracleous, L & Pangarkar, N 2008, ‘Managing human resources for service excellence and cost effectiveness at Singapore Airlines’, Managing Service Quality, vol. 18, no. 1, pp. 4-19, viewed 9 August 2010, Proquest Database.

Warsi, S, Fatima, N & Sahibzada SA 2009, ‘Study on Relationship Between Organizational Commitment and its Determinants among Private Sector Employees of Parkistan’, International Review of Business Research Papers, April, vol. 5, no. 3, pp. 399-410, viewed 9 August 2010, Proquest Database.

 

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