REWARD MANAGEMENT IN
BUSINESS
Eglė Skrebytė IVKbns03-1
CONTENT
Introduction
 Reward incentives
 Monetary incentive
 Non-monetary incentive
 Example
 References

INTRODUCTION
Reward management is about the design,
implementation*, maintenance**, communication
and evolution of reward processes which help
organizations to improve performance and achieve
their objectives.
*Implementation – performance
**Maintenance - supervision, care
Reward management involves the analysis and
effective control of employee remuneration* and
covers salary and all benefits.
*Remuneration - salary, compensation, pay, wage
Every company needs a strategic reward system for
employees that addresses four areas:
compensation, benefits, recognition and
appreciation.
REWARD INCENTIVES
Workplace motivators include both monetary and
non-monetary incentives*, which combined can be
the main reason, why employees choose one or
another employer.
Also, through reward incentives employers can
achieve that employees accomplish company
objectives.
*Incentive - stimulant
MONETARY INCENTIVE
The purpose of monetary incentives is to reward
associates for excellent job performance through
money. Monetary incentives include profit sharing,
project bonuses, stock options and warrants,
scheduled bonuses (e.g., Christmas and
performance-linked), additional paid vacation time,
bonuses for extra working hours.
Also, one example of monetary incentives is mutual
funds provided through company pension plans or
insurance programs.
NON-MONETARY INCENTIVE
The purpose of non-monetary incentives is to
reward associates for excellent job performance
through opportunities. Non-monetary incentives
include flexible work hours, training, pleasant
work environment, and sabbaticals.
Also, they include extra vacation day, parking spot,
a “day pass” , flexible working hours, outdoors
activities, relaxation room, catering.
5* THE RED CARNATION
COLLECTION
Pension Scheme;
 Private health care;
 Dry cleaning;
 Travel card loan;
 Meals on duty;
 2 for 1 theatre tickets;
 20 days holiday per year rising to 22 days after 3
years service and to 25 days after 5 years;

Unrivalled training and development;
 Career and development programs;
 Promotion from within;
 Long service awards;
 Annual Staff Appreciation Party;
 Action packed social events - free and subsidized;
 Outstanding monthly awards and celebrations
for the employee who stands out from their fellow
team mates;

CONCLUSION
Reward management is one of the most important
things in any business because it motivates the
employees to do their job as perfect as they can and
because of it customers are happy and they will be
loyal to that company. Reward management should
be one of the priorities of the authorities of the
company.
REFERENCES
Article „The Best Ways to Reward Employees“
[looked at 2013 november 15] :
<http://www.entrepreneur.com/article/75340>;
 Article „ Issues and Trends in
Reward Management“ [looked at 2013 november
15] :
<http://peoplecyclotron.wordpress.com/articles/iss
ues-and-trends-in-reward-management/>;
 Article „ The Role of Monetary and NonMonetary Incentives in the Workplace“ [looked at
2013 november 15] : <
http://edis.ifas.ufl.edu/hr016>.
