The term “compensation” refers to the combination of wages, salaries and benefits an employee receives in exchange for work. Compensation may include hourly wages or an annual salary, plus bonus payments, incentives and benefits.
Rewards can be defined broadly as the material and psychological profits for performing tasks in the work place.
Let consider that we are evaluating the performance of the different employees of Standard Chartered Bank or more widely the performances of a Bank’s employees.
In a Bank there are different types of employees and Bank can apply different types of rewards to motivate its employees and these rewards can be based on individual and group wise.
Types of Rewards:
There are different types of rewards for the different types of employees and a rewards that can motivate one levels employees may not be able to motivate the others levels of employees.
The rewards can be used by a Bank to motivate its employees. These ares-
- Hourly Wage
Fixed amount according to work hours.
- Annual Salary
Contractual amount per year.
- Piece Rate
Fixed amount per unit of our.
- Sales Commission
Fixed percentage on sales revenue.
- Merit Pay
Bonus granted on outstanding performances.
- Profit Sharing
Distribution of specified percentage of bottom line profits.
- Gain Sharing
Distribution of specified percentage of productivity gains and \ or cost savings.
- Pay for Knowledge
Salary or wage rates tied to degrees earned or skills mastered.
- Stock Options
Selected employees earn rights to acquire firms stock free or at a discount rate.
- Cafeteria Compensation
Employees select personal mix of benefits from an array of options.
Types of Employees:
Employees can be divided by the job of the employees. There are different types of job in a Bank. Here we are not going to divide the employees according to their designation we are emphasizing on the jobs of the employees I mean what types of job they are doing for the Bank.
- Managing Director (MD)
- Deputy Managing Director
- General Manager (GM)
- Deputy General Manager (DGM)
- Assistant Managing Director (AGM)
- Executives Officers
- Divisional Managers
- Branch Managers
Lower level management:
- Assistant Managers
- Second Officers
- Third Officers
Division of Job:
- Sells And Promotion (Credit card, David Card etc)
- Parches Department
- Customers Complain and Care
- Audit Department
Reword for the Employees:
A bank can provide a rewords to it employees to motivate them as follows:
In a bank the employees who are involved in Sells and Promotion (Credit card, David Card etc) they can be motivated by sells commission, piece rate etc.Employees of purchase department can make be motivated by giving them gain sharing rewards.
Second Officers, Third Officers are the very lower part of the management.
They have not had to play any strong role in management. So the Owner group may motivate them by giving some rewards like merit pay, pay for knowledge etc.
Assistant Managers, Branch Managers, Divisional Managers, Executives Officers have to play some strong role in management. They may get the facility or reward like merit pay, Pay for knowledge, Profit sharing (limited access).
Some top level employees like Managing Director (MD), Deputy Managing Director, General Manager (GM), Deputy General Manager (DGM), and Assistant Managing Director (AGM) these types of employees can be motivated by the owner through the rewards like merit pay, pay for knowledge, profit sharing, stock options, cafeteria compensations etc.
Cafeteria compensations should be for the senior officer because it is a very expensive proves for the organization and for this reason this should be open for only the top level employees.
Facility or rewards like monthly or annual wage or salary should be open for all according to the amount of their service for the organization.