The Effects of Employee Remuneration on Productivity
The Effects of Employee Remuneration on Productivity
According to the Management Study Guide,
"the reward or compensation given to the employees for their work
performances" is the definition of employee remuneration. "the reward
or compensation given to the employees for their work performances."
Remuneration is a strategy that can be utilized to boost morale, develop team
cohesion, and increase levels of motivation. The piece rate method and the time
rate method are the two most common ways that employees are compensated for
their work. The first type of pay is known as compensation based on unit
productivity. This can include things like writing software applications or
putting together a unit. The latter refers to the time that an employee spends
working on a job, such as ensuring that a project is completed before the
allotted time
Remuneration is a strategy that can be used
to inspire employees to be more productive, but it does not necessarily need to
be based on remuneration. Remuneration is sometimes used interchangeably with
praise or acknowledgment. However, remuneration in the form of compensation,
such as a raise or promotion, can be helpful in fostering motivation and
productivity over the long run. "What motivates good employees is the
ability to see projects through to their completion," says HR Village,
advising employers not to rely too heavily on monetary incentives as a
motivator
Because members of a team are motivated to
work more for their own benefit and that of the team as a whole when they are
eligible for compensation, productivity levels rise. The utilization of team
remuneration as a tool for improving new account openings, increasing orders
from current accounts, and creating new account leads is available to sales
managers. Productivity can be increased by grouping workers together into teams
that work toward a common objective, particularly if the workers are incentivized
with additional pay in the form of incentives or commissions
Conclusion
Remuneration has a positive effect on
employee morale in general, provided that the benefits are viewed as being
equitable. In other words, the practice of awarding progressive or tiered
bonuses to employees on the basis of which worker is the most productive, which
worker is the second most productive, and so on. Instead of having a single,
lofty objective that only one person has a chance of achieving, it is better
for morale all around to set a series of goals that each employee has a shot at
reaching.
References
Campbell, S., 2020. New role of
HR professionals. [Online]
Available at: https://www.trainingjournal.com/articles/features/six-ways-role-hr-professionals-will-adjust-post-pandemic
[Accessed 15 April 2023].
Fell, S. S., 2016. Your Workers Want Work
Flexibility But Companies Benefit Most. [Online]
Available at: https://www.entrepreneur.com/article/239111
[Accessed 15 April 2023].
Randstad, 2018. why Air New Zealand is our most
attractive employer. [Online]
Available at: https://www.randstad.co.nz/hr-news/employer-branding/why-air-new-zealand-is-our-most-attractive-employer/
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