Solution

Table of Contents

Task: A written response to the questions. 2

1.1 Principles of Rewards. 2

1.2 Implementation of policy initiatives and practices. 3

Policy Implementation. 3

Best Practice. 3

1.3 Impacts of People Performances on approach to rewards. 4

Impacts of organisational performance on approach to rewards. 4

1.4  Types of benefits offered by different organisations. 5

1.5 Contributions of extrinsic and intrinsic rewards to improving employee contribution and sustained organisational performance  6

Extrinsic rewards 6

Intrinsic Rewards. 7

2.1 Business Context of the Reward Environment. 8

External factors. 8

Internal factors. 8

2.2 Ways in which benchmarking data can be gathered and measured. 9

2.3 Organisational Reward Packages and Approaches. 10

Process of job evaluation. 10

2.4  Legislative Requirements that Impact Reward Practice. 11

Equality Act (2010) 11

Working Time Regulations (1998) 11

3.1  Approaches to Performance Management. 12

Performance review meetings. 12

360 degree. 12

3.2 Role of People Practice in Supporting Line Managers on Rewards Judgment 13

3.3 Line managers make reward judgements. 13

Reference. 15

Task: A written response to the questions

1.1 Principles of Rewards

Transparency

Transparency in how rewards are determined and distributed is essential for an effective system. When the criteria and decision-making process are clear and understandable for all involved, it engenders trust and confidence as evidenced by REBA (2021). However, transparency alone is not sufficient without fairness.

Fairness

Fairness means applying the same standards and metrics to all employees and considering relevant mitigating factors in decisions on reward (Wales, 2023). It also means recognising different forms of valuable contributions. When done consistently and judiciously, fairness positively impacts morale and motivation to do great work. Transparency enables fairness but fairness should be the overarching goal of any rewards system.

Judgment- Transparency allows for understanding but fairness is paramount. When employees know what is expected of them and that valuable contributions from all will be impartially evaluated and judiciously rewarded, they will be motivated to help the organisation succeed. Transparency enables fairness but fairness should be the priority principle for any rewards system to function effectively and maintain high engagement.

Importance of reward on organisational culture and performance management

Rewards play a vital role in shaping organisational culture and driving performance. A rewards system that is aligned to business strategy and goals, emphasises fairness and transparency culture, and recognises different types of valuable contributions; helps reinforce the behaviors that are most critical for business success. According to Tenny (2023), it motivates employees to consistently perform at a high level and go above and beyond to serve customers and achieve targets. Rewards also foster employee loyalty, engagement and satisfaction by ensuring effort matches outcome. A culture where commitment and excellence are incentivised and rewarded promotes higher productivity, innovation and overall organisational effectiveness (‌Anees, 2023). A strategic, well-administered rewards system is thus a key lever for any company’s success.

1.2 Implementation of policy initiatives and practices

Policy Implementation

Implementing a new policy requires planning across stages;

Consultation – The first stage is consultation where leadership presents the draft policy to gather early feedback from internal and external stakeholders. According to ‌ Hendricks (2023), this helps identify any issues or unintended impacts before finalisation.

Planning- Next is the planning phase. The project team incorporates feedback to refine policy details. They also develop training and communication strategies to instruct all impacted parties.

Rollout- The third stage is the rollout. A broad communication launches to notify employees about coming changes. Training is implemented to ensure managers comprehend the policy and address questions.

Trial period- Following rollout is the trial period. The live policy is monitored over a set time frame to measure real-world results and identify any adjustments required before organisation-wide adoption.

Review-   Data is analysed to evaluate if objectives are being met. Governance is established for ongoing compliance. Regular audits maintain long-term policy alignment with strategic goals as circumstances change over time. Through thorough execution of each unique stage, new policies can achieve smooth uptake, clarify responsibilities, and realize intended benefits while minimising unplanned impacts.

Best Practice

Best practice in managing the policy implementation process with a focus on the following;

Ensuring inclusion across all employee demographics is paramount for change management success. Focus groups with diverse teams allow different viewpoints to influence planning. Surveys benchmark comprehension among all after rollout. Training acknowledges various learning styles to optimize understanding. Representative pilot teams provide early feedback represent all. The review examines impact through an equity lens to identity any disparities. Change agents reflecting the full workforce composition aid two-way communication. Post-implementation audits continue engaging underrepresented groups to sustain buy-in long-term. As evidenced by Google’s approach, capturing varied viewpoints throughout via these practices helps policy alignment by addressing all potential concerns upfront.

1.3 Impacts of People Performances on approach to rewards

People performance has a significant influence on how rewards should be structured and administered as evidenced by CIPD (2023). Firstly, different performance levels require tailored incentive structures. High performers may respond best to more significant variable pay linked to stretch targets, whereas average performers need attainable goals to stay motivated.

Secondly, team dynamics need consideration – inter-dependent roles require group-based rewards to encourage collaboration, whereas individual contributors can be rewarded individually. Thirdly, tenure impacts rewards – longer-serving staff may value separate career progression paths including promotions, whereas younger employees prefer training and skills development opportunities as part of their compensation. By taking a nuanced, people-first approach that acknowledges these varied performance and demographic factors, organisations can design rewards systems that maximally drive engagement and productivity across diverse workforces (‌ Armstrong, 2006).

Impacts of organisational performance on approach to rewards

An organisation’s performance impacts its rewards approach. According to CIPD (2023), when performance is good, rewards can focus more on recognition versus incentives. Poor performance may require a stronger incentive-based rewards program to motivate improved results. As Home International reviews policies to cut costs, increase profits and reduce high factory turnover, its organisational performance directly impacts the rewards approach. With rapid global growth in online furniture sales during the pandemic, the company needs rewards targeting newer priorities around sustainability and operational efficiency. For example, incentives linked to waste reduction, quality output or on-time delivery tied to stretching sustainability and profitability goals can boost motivation. Additionally, with younger factory operatives experiencing higher turnover, rewards focused on skills development, career progression and work-life balance may help retention. Tailoring incentives to roles addressing organsational priorities, from newer product lines to importing/exporting challenges from Brexit, can optimise performance. A strategic, agile rewards system responsive to business context ensures goals are properly incentivised.

1.4  Types of benefits offered by different organisations

Benefit 1: Retirement Benefits

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