To accomplish this, rewards need to be: 1) Contingent on achieving desired performance levels rather than on merely doing certain tasks; 2) Meaningful and valuable to the individual; 3) Based on objective and attainable goals; 4) Open to all, and not based on a competitive struggle within the workplace; 5) Balanced between conditions in the workplace (extrinsic) and fulfilment of individual needs and wants (intrinsic);
Reward systems need to focus efforts on serving the customer; .
Reward systems need to enhance collaboration within the workplace. .
Definition: The purpose of a base pay program within the context of a total reward system will be to: Provide a method for reinforcing the value-added contributions of each individual through the application of their talents, the growth of their capabilities, and the performance of their actions consistent with the key success factors of the organization (Wilson).
To achieve this some basic guidelines need to be followed. Referring to forces that drive human behaviour, there are some guidelines or key success factors, which has to be kept in mind when developing a compensation program. By understanding what drives human behaviour, we can create the conditions necessary to encourage desired behaviors. The challenge will be to create those conditions that encourage people to collaborate because they want to, not because they have to. Effective reward systems are:.
Base pay (based on job descriptions) can be a secure, stable income in order to get employees to show up for work and 'doing just enough to get by'. No more. No less.
Motivating employees and paying them for their contribution to the process, asks for more then a pay system based merely on equity which is based on seniority and job responsibilities. Is it fair that everybody who is labeled a production worker or manager should get the same payment? Paying for a job-description doesn't sound very 'human resource management-like'.