Tuesday, 8 May 2012

Reward


There are many different ways in which a business can reward their employees, such as offering them appraisals and incentives this can be to, motivate the employees to work harder or show employees that the business appreciates their contribution and thanks them.

An organisation that I am familiar with is B&Q. there are a lot of different ways of rewarding employees that B&Q use.  B&Q has a reward package that consists of many ways to reward employees, what B&Q say id that “We reward our colleagues with a competitive rewards package.” what the package consist of is:

- May different bonus schemes to celebrate success

- Discount cards offering 20% off B&Q products, in store or online
- Our Employee Benefit Book offers discounts on everyday product and services
- B&Q support working parents by offering childcare vouchers allowing significant savings. 

(diy.com, 2012)

Some of these rewards are:

Bonus schemes - The bonus schemes that B&Q have in place are designed to increase performance and reward accordingly, there are various types of bonus scheme that are each designed to allow employees to share in success of the business. B&Q make sure to annually review the schemes in order to ensure that they remain competitive in the market place.

Flexible working – B&Q take into account flexible working  and state that all permanent employees irrespective of sieve or caring responsibility have the right to request flexible working hours, so that they are able to achieve more balance between other commitments and work

HSA and BUPA membership- HSA is one of the largest health plan providers in the UK, employees of B&Q are offered membership rates to the services offered by the two organisations.

 Employee personal benefits - Employees of B&Q can enjoy various discounts at high street retailers, travel, leisure, and other great places. All of the employees are entitled to 6.6 weeks of annual leave.                                               
                                                                                                                                          (diy.com, 2012)

The rewards system that B&Q has in place differs from business such as Tesco or Asda as, B&Q offer their employees more rewards and try to motivate their employees to work to the best of their ability, what can be seen is that B&Q show that they really care about their employees as they have long term service awards for recognition for long term employees who have been with B&Q for a long time by awarding them additional annual leave and bonus payments on specific anniversary dates.  There is some difference in types of rewards given to employees as older people and younger people due to age and ability to work , as older people are unable to work as many hours and require more rest,  the healthcare memberships are more targeted at the older employees as well as less working hours and longer days off.

 Fairness and equity in the business is insured as people who have been working for long hours are given more leave and fewer hours so that they are able to work to the best of their ability, irrelevant of age employees are recognized for achievements by being made employee of the month based on their performance.  

The arguments for should chief executives of business receive large bonuses is that , the performance of a business does not solely rely upon the direction chief executives take the business in, the chief executives rely upon line managers and branch mangers of the business to ensure that employees are working hard and meeting targets.  If they employees are not meeting targets then the line manger and branch mangers are responsible for this and not the chief executives.  Large business can still be given to chief executives if businesses are underperforming due to it being stated in their contract. The reason they should be given large a large bonus is that the are working hard in their job role but if other employees are not working hard or doing jobs correctly then it is not the fault of the chief executive and he should not have a bonus he has deserved taken away from him due to the under performing employees.

The argument against chief executives receiving large bonuses, is that it is wrong for the people who are  head of the business to receive large bonuses when they are underperforming , instead their should be pressure put on the chief executives as to why the situation of under performing has occurred.  The whole performance of business relies on the chief executive as they are responsible for the direction that an organisation takes , an example is when the banking crisis happened head of the royal bank of Scotland Stephen Hester was offered by the board of directors a large bonus, he was forced to reject it due to the situation that he had put the bank in , the direction he took as well as other chief executives resulted in devastating impacts on the general public as well as the organisations own employees. Large bonuses could instead of being given to chief executives be used to help the business to increase their performance so that they are generating high profits in which case chief executives would deserve large bonuses.   

References

diy.com (2012) B&Q benefits and rewards [online] Available from: http://www.diy.com/diy/jsp/corporate/content/careers/our_roles/benefits.jsp [Accessed 2 may 2012]

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