Job Rewards Analysis

job-rewards-analysis

Job rewards analysis refers to the identification of various kinds of rewards associated with a job. These rewards are extremely important determinants in attracting job-seekers to an organization, in retaining the best employees and in motivating them to put forth their best performance. Often, rewards become the sole deciding factor. That is so, because the term ‘reward’ encompasses almost everything that an employee looks for in his or her job, or from his or her organization.

To a layman, reward can mean just the salary or monetary benefits one receives in lieu of the job performed. But that salary and monetary benefits form only a small part of the larger picture. Job rewards can be broadly categorized as intrinsic rewards and extrinsic rewards.

Intrinsic rewards imply the satisfaction that an employee derives through the performance or accomplishment of a job itself and also from a rich and supportive organizational culture. These rewards are non-monetary in nature and are intangible. Sources of an intrinsic reward can be the content of work and approach followed in its execution, career prospects and feeling of belongingness to the organization.

With respect to work content, if the work is challenging and meaningful, does not lead to monotony, has lots of learning opportunities, provides enough scope of autonomous decision-making, encourages creative practices, earns desired recognition  –then, an employee can glean immense satisfaction by performing the job. Accomplishing a challenging task or having the authority to make crucial decisions is a reward in itself.  Recognition and admiration for good work can go a long way in mentally rewarding and motivating an employee. An employee also looks at his or her career prospects with the current organization. Are there ample chances of career advancement with the organization? Does the current job offer opportunities for learning and skill enhancement? Are trainings that help in bridging existing skill gaps and imparting new skills regularly conducted? An affirmative answer to all these questions is considered as a reward by the employees.  If the organization has a supportive work environment, if the organization shows that it cares for its employees and is willing to go an extra mile to encourage employees’ commitment, if the values of the organization match with those of the employees’ – in all these cases, employees feel that they belong to the organization and the chance of continuing with the organization is a rewarding opportunity.

Extrinsic rewards, on the other hand, are tangible and represent the monetary value for the job. They include compensation components and various benefits.  Compensation consists of basic pay, several types of allowances, incentives, innovative schemes like profit-sharing, deferred compensation, employee stock options, variable pays, performance-related pay etc.  Benefits comprise various health and medical benefits, retirement benefits, other social security benefits etc.

A job reward has 3 dimensions, namely amount, differential and stability. Amount denotes magnitude – the quantity in which a benefit is received. Differential implies how much a reward varies from employee to employee, or how consistently is it distributed across the employees? Stability or reliability of rewards takes a look on what factors do the rewards depend on, like business condition, organizational performance etc. and to what extent do the rewards vary with change in the influencing factors.

A job’s total rewards are assessed by checking both its intrinsic and extrinsic rewards. These rewards can be termed as the ‘values’ an employee receives in lieu of his or her performance and thereby are coined as Employee Value Proposition (EVP).

To attract and retain the best talents, properly communicating an organization’s EVP to its potential and existing employees is of utmost importance. To do so, first, job rewards analysis needs to be done which identifies the precise factors that attract employees. Then, a message should be drafted which clearly communicates the strengths of the EVP and why this organization should be perceived as an employer of choice. A lucrative and compelling EVP which at the same time does not turn out to be an economically non-profitable or unrealistic one for the employer needs to be balanced in economic terms, fitting to the needs and preferences of employees or applicants and possessing some unique  characteristics that sets it apart from other employers.

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