The Effect of Employee Engagement in Reward Systems and Performance Management

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The Effect of Employee Engagement In Reward Systems and Performance Management Introduction The success of any organization rests on the strategic management of its employees. It’s vital for an organization to attract, motivate and retain the best talent available to achieve and sustain a long-term competitive advantage. To achieve this the Human Resources Department must design a performance management system that not only links employee performance outcomes and expectations to its strategic goals, but also uses the system as a tool to improve employee productivity as well as recognizing employee accomplishments, all while emphasizing the employee’s role in the process. The challenging part is motivating the employee to increase and sustain productive behavior. An organization’s reward system can be used as a motivational tool if the rewards being offered are considered valuable by the employee. A valued reward system can positively affect an employee’s performance. Organizations use pay, benefits, compensation and other rewards as effective performance management instruments to enhance employee productivity so goals can be achieved. So, how does an organization choose the reward system it offers? This paper will focus on the hypothesis that employee engagement in choosing a valued reward system will positively effect performance management and subsequent employee success. Assessment An effective employee reward system is an integral part of the employer/employee relationship. People offer their expertise in exchange for what they believe to be equitable compensation. Common compensation packages that organizations offer their employees include wages, benefits, and selected company perks such as car allowances, casual dress days, or bringing your pet to work. There’s more to an effective rewards system than just the implementation of the above mentioned

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