The reward principles are;

Fairness– In offering rewards, there is a need for ensuring fairness and objectivity for all the employees (Khan et al., 2020). This is without demonstrating any favor for particular staff categories. The issued rewards would be informed by performance appraisal and clearly stipulated with an elaborate follow-up.

Equity– Rewards need to be informed by the employees input to the organisation (Kollmann et al., 2020). From appraisals outcomes, best performers would be rewarded well as opposed to low performers. In GA pensions, staff need to appreciate the rewards equity to avoid their demotivation.

Transparency– The performance appraisal strategy used to determine the rewards issued need to be all-inclusive with elaborate communication to all stakeholders (Bamberger, 2021). In GA pensions for example, employees need to appreciate expectations from the management and what is offered in return. This is for avoiding mistrust and lack of inclusion in decision on rewards offered.

Organisation Culture
In GA pensions, for ensuring their culture is progressive, fairness, equity and transparency must be continuously propagated. For instance, fairness is identified in Nzuva and Kimanzi (2022) to ensure employees view reward systems as being just, lowering conflicts and disagreements. Also, as part of their culture, equity is advanced for reflecting staff input, motivation for high performance and talents retention. As identified earlier, transparency avoid mistrust and lack of clear information improving confidence level. Being a specialist knowledge, a Reward Advisor for GA pensions would improve knowledge on different principles supporting line managers to make fair-based and motivating reward decision. This would lead to cohesion and increased culture of productivity.

Organisation Performance Management

The identified principles are core for GA pensions increased performance management. Through fairness, this lead to an evaluation that is not biased, equity in treating the employees, enhanced satisfaction and commitment level. Through equity, it means GA pensions staff would be rewarded based on this (performance). According to Hongal and Kinange (2020), with mutual trust and understanding, all expectations are clarified with rewards criteria set hence improved performance clarity and accountable. The employees commitment is also improved, morale and productivity, hence improving overall performance.

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A reward policy example is;

Profit-sharing Policy

After every year of business operations, an organisation gains in profits which can be shared with employees. Through the policy, employees gain in a direct manner from profits accrued by the organisation (Nimier-David et al., 2023). As part of this policy, formula used to calculate profit share is identified annually informed by various metrics including net income and returns on equity used. The policy would detail cash bonus and final retirement pay to include the disbursement process. In GA Pensions, this would be appropriate for employees motivation for improving profitability depending on their input.

Policy Implementation

A set of phases would be pursued for a successful policy implementation intended to ensure they are aligned with organisation set objectives;

Key stakeholders involvement– For GA Pensions, this can include coming up with a cross-functional team which engage HR teams, finance and senior admin. Rationale of involving these stakeholders is for collaboration in designing and drafting the profit-sharing process (Manzoor et al., 2021). All stakeholders inclusion led to alignment of the policy with organisation objectives, legal demands and HR strategy.

Line managers involvement– Line managers are actively engaged in implementation of the profit-sharing policy. According to Saks (2022), they are mandated to communicate on the policy to their different teams, explain importance and align with expected GA Pensions performance.

Consultation for employees input– As part of GA Pensions operations, consultation of the employees in designing the policy is essential. This would be achieved by sourcing for the input of employees with an intention of understanding preference, concern in place and expectation from profit-sharing initiative (Juarez et al., 2020). The outcome of consultation is to enhance engagement, increase buy-in and policy reflection.

Integration of reward principles– This policy is initiated aligned with main reward principles including fair rewards, equity and transparent. They are part of this policy for ensuring profit is distributed in a fair, equitable and just manner (Khan et al., 2020). By pursuing et guidelines pertaining profits calculation, eligibility, distributions, reinforcement of organisation commitment are all evidenced.

Evaluation and monitoring– As part of the policy implementation, GA Pensions would need to pursue frequent evaluation for profit sharing policy success. The best practice would be to adopt metrics including satisfaction, commitment and financial benefits. According to Murphy (2020), this policy is due for frequent review for ensuring importance and adaptable to business environment under change and regulations in place. The outcome is iterative strategy facilitating GA Pensions in refining and optimising this profit-sharing strategy in optimum.

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This is defined as identifying how appropriate staff perform in their assigned roles and functions leading to increased input to attainment of an entity objectives (Emmanuel & Nwuzor, 2021). The measures include;

Measure- Performance review– This strategy provide managers feedback regarding to an employee performance outcomes and ability to achieve job function expectations. The review process pursue a comparative analysis of job description of an employee and how well they execute their functions.  This is identified as qualitative measure for people performance evaluating success and improvement area.

People performance issue

Employees Absenteeism-The level of employees absenteeism has a direct effect on GA Pensions rewarding their employees successfully. With absenteeism rates being common in an organisation, a reward strategy implementation put emphasis on rewards offered to attendees including time-off rewards which manage absenteeism (De Reuver et al., 2021). The factors leading to an increased absenteeism are hence managed by rewards offered successfully.

Organisation Performance

This is defined as including the scope organisation achieves their set objectives and fulfilment of their mission (Emmanuel & Nwuzor, 2021). It entails an evolution of different factors including performance, efficiencies and profits accrued for establishing entire success and effectiveness of stakeholders value.

Measure- Customer Satisfaction– This can be identified as a major qualitative measure of determining organisations performance. For evaluating the customers satisfaction scope, organisations work on interviews for evaluating scope of customers satisfaction and readiness of returning back (Kurdi et al., 2020). In GA Pensions context,  track of the satisfaction ratings of the staff and trends offer essential information for effective achievement of clients demands in services provision.

Organisation Performance Issue

Reduced Productivity– Challenges associated with an organisation performance including low productivity has a direct implication on GA pensions reward strategy option. This means reduced performance, implementation of performance rewards aligned to people or teams output is successful approach (Lee et al., 2022). The rewards can be inclusive of bonuses after achievement or exceed performance and recognition programs for best performing employees. These incentives could be a motivator to staff improvement of their performance, aligned input with organisation objectives successfully.

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Financial Benefits

Retirement Savings– For GA pensions, they can consider providing retirement benefits including the 401(K) contributed from the employees pay. The importance of this financial benefit is assisting the employees for future savings and enhancing overall pay package. The provision of 401(k) as part of the retirement savings plan has a positive implication of attracting and retaining highly qualified employees. The employees are similarly assured of long time financial security with their commitment to the organisation enhanced (Lindeboom & Montizaan, 2020). In Go Pensions, this nevertheless has varying complexity administratively with immense costs incurred.

Non-Financial Benefit

 Flexible working plan– The GA Pensions can provide their employees with a flexible working plan. According to Austin-Egole et al. (2020), this plan offers an opportunity for the employees to work from different locations and time of their preference. The positive implication of this is increase satisfaction, employees wellbeing and work-life balance. This is while evidencing the organisation scope of being committed towards support of staff demands.

The flexible working arrangements similarly have a potential of enhancing autonomy of employees, increasing work-life balance and overall performance (Austin-Egole et al., 2022). The drawbacks of this strategy include lack of an appropriate capacity to maintain communication and team working in an organisation setting.

Similarities

Both are relevant in offering benefits to their employees leading to an increase wellbeing and employees commitment. Considering the retirement savings including the 401(k) it guarantees employees with sustainable financial security and attracting highly qualified talents. Conversely, flexible working benefits enhance overall work-life balance and autonomy of the employees.

Differences

A summary of their differences is as illustrated in the following;