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Q. Show the Advantages of reward systems?
¸ Motivation can be heightened e.g. performance enhanced if paid by results.
¸ can inspire creativity e.g. bonuses paid for staff suggestions schemes.
¸ A clear measurability for staff productivity, efficiency or targets.
¸ Can achieve greater financial flexibility for the organisation by changing the composite of staff fixed and variable cost e.g. if production staff are paid per unit of product, this will help achieve better cash-flow for the organisation during off peak periods. A higher composite of staff variable cost can be achieved by sales commission and production piecework schemes.
¸ can help cut down on absenteeism e.g. minimum legal payment for sickness, absenteeism or punctuality linked bonuses.
¸ Can help cut down on labour turnover e.g. payment of accountancy fees reimbursed to employer if members of staff leave within a certain contractual period.
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