Cheesy Pizza Company is aiming at venturing into Singapore and Hong Kong markets and opening ten outlets in each market in 2018. Cheesy Pizza Company, however, has to ensure that each of the opened branches become successful by incorporating a reward system. A reward system will enhance the morale of employees in the company, increase performance and enhance the achievement of the company's goals and objectives; hence a reward system is an essential component that should be implemented in this company. The benefits associated with Total Reward systems should not be underrated. For instance, the system will enable the company's management to achieve employees' attraction, motivation, and retention. The reward system will be used to show how much the Cheesy Pizza Company values the employees' talent, time, and relationship at work. The productivity or performance of workers improves when their employers recognize their efforts and reward them for the accomplished tasks. Cheesy Pizza Company requires applying the reward system efficiently to ensure no harm is subjected to the employees (Agwu, 2013). As the human resource consultant (HR) in the cheesy pizza company, I Present this report to act a guideline to the cheesy company management by providing the importance of incorporating the reward system in the company and how it can be efficiently done to ensure the success of each branch of the company. I will, therefore, discuss the reward system focusing on its objectives in our company, reasons why attention should be paid on the design of the reward system, factors to consider when designing the reward system and implementation of the reward system.
Objectives of Reward System
One of the purposes of a reward system is to attract and retain suitable employees in the company. The reward system will improve the attitudes of the employees in the business and enhance their engagement in the project activities. Also, it will inspire the workers to do their work well and stay much longer. Motivation comes as a result of employees feeling valued and appreciated and hence developing the feeling of pursuing their opportunity advancement in the company. While the employees stay longer in the company to achieve their personal goals, it is benefiting the company and enabling it to reach its goals as well. Secondly, the reward system influences the organizational culture through encouraging innovation, flexibility, and participation. The advantage can be used by the company to launch new methods of work and enhance innovation in the company through a new working structure. With motivation also every employee wants to be involved in work at every step because they have the morale and energy to work knowing well that their work is productive and is well appreciated.
Additionally, the reward system is aimed at motivating employees to meet their job objectives. When employees are not motivated, they end up not performing well at their workplace, and the rate of their absenteeism becomes relatively high. Reward system, however, is a motivating factor that gives the employee a reason to wake up every morning with a goal to perform the best for the day to get rewarded. Employees will probably create their daily objectives that motivate them more at work and make them work even harder. Employees feel good about their work and develop a positive working mind and are always driven to reach their goals. Rewarding employees according to their contribution is another aim of a reward system (Riasat, Aslam, and Nisar, 2016). Employees need to be appreciated for their excellent work and improvement at work. A reward system serves the purpose to ensure that the hard work of the employee does not go unrewarded but rather their contribution is paid the give them a morale to work even harder for higher pay. Also, the reward system is aimed at defining the structure of the company whereby the rewards for the highest ranked in the hierarchy is higher than the lowest rated in the hierarchy. The ranking will be a means of defining the status of each employee in the company and coming up with a structure that will encourage healthy competition among the employees to achieve the best and get ranked higher in the hierarchy.
The reward system will deliver value to the workers and drive the market. The company will develop reward strategies to match with the business strategy and the human capital of the company. Also, the Cheesy Pizza Company executive will suggest approaches needed to help achieve employees' motivation and ensure that they are happy. The aspect will then result in the provision of quality services to the clients and increase the productivity of the business. Cheesy Pizza Company will improvise reward strategies as incentives by as offering bonuses to the performing employees. For instance, employees who achieve the desired goals will be given bonuses to recognize their efforts. If the top performers are rewarded, they will be motivated to continue excelling as they struggle to acquire the bonuses offered. Moreover, positive recognition will help to retain and encourage the employees to work hard. The system includes a component that gives employees points whenever they improve their performance (Edirisooriyaa, 2014). The system will then turn the point into cash as a reward to the employees. Notably, dedicated and hardworking employees will be recognized and rewarded for their efforts or dedication. Allocation of points to hard-working individuals will set up everyone that goal achievement will be valued and rewarded. The employees will be allowed to use the earned points as cash to access services or buy items at the company's' stores or other companies' stores. Notably, the reward strategy will be vital because it will act as an incentive for the workers to work hard for high performance and acquire the points. Productivity will be enhanced within the company because hard work will result in high profits.
The management acquires a right direction and insights once reward systems are covered and implemented in the organization. A compensation philosophy is a useful component that can be applied to offer specific guidelines. A reward system establishes particular characteristics that motivate workers and make them remain in the organization. For example, Compensation programs contained in the reward system provide specific motivating features that are implemented to encourage extra work by employees. A pay structure in the reward system is required to accomplish several functions. The comparison between various jobs focusing on their value should be covered in internal equity of the company's employees (Edirisooriyaa, 2014). External competitiveness is also necessary because it evaluates the competitors' payment structure and compares it with the one for the company. Exempt employees can be offered increased pay because they will not benefit from overtime compensations. The compensation strategy will make employees motivated and happy hence; it is a sufficient incentive. Employees who fit in the non-exempt category may be offered less pay but compensated for if they accomplish tasks over time.
Designing a Reward System
Singapore employment act does not provide specific guidelines on the establishment of employers and employee contracts. Cheesy Pizza Company should, therefore, consider establishing a favorable contract to motivate the employees and gain maximum profit from the results of the rewards. Singapore employment act does not provide a minimum salary for employees. Cheesy Pizza Company should, therefore, take this as an advantage to incorporating a salary rate that will motivate its employees to work harder each day. The employment act only provides that the employees must be paid at least once per month and annual bonuses are not a must. The law offers several benefits to the employees as holidays, sick, annual and maternity leaves. Addition on day offs for the employees are an added advantage that can be incorporated by the company to enhance working conditions and performance by the employees. Cheesy Pizza Company should not provide private health insurance to its employees since it is against the Singapore employment act. Also, the law requires that employees work for a minimum of 8 hours which may limit the working hours of the Cheesy Pizza Company. The company, therefore, will require considering a compensation that will not violate this law and at the same time ensure services to customers at all time.
Close attention should be paid to the design of a reward system. The emphasis is to ensure that the reward strategy and the business strategy go hand in hand without violating the legislation laws. The reward system must achieve the business goals and objective of the Cheesy Pizza Company. When designing the reward strategy, the company should pay attention to the ability to accomplish the pay goals. It is essential to develop a plan that will ensure that the profit made will pay the employees or cater for all the reward expenses without causing collisions where some of the employees end up not getting what they have been promised. According to the Singapore legislation, the workers must be paid at least once per month. The reward system must, therefore, ensure that it can make enough profits that will enable payment of its employees following this legislation. A strategy that ensures employees well paid as per the agreements and benefits made from the process will lead to the achievement of Cheesy Pizza Company business goals. Additionally while designing the reward strategy; it is necessary for Cheesy Pizza Company management to maintain external and internal equity in the payments structure. Every employee should be compensated according to their efforts. The compensation creates a competitive environment which in turn creates business success. It is necessary to ensure that the reward system does not include any aspect of favor on part or a group of employees in the company. Every employee should feel like part of the company, and none should be made to feel special than others. It is necessary for the Cheesy Pizza Company to ensure that the reward system is future-oriented, flexible and adaptable. The reward system should have long-term goals and should be adaptable to any change in case of need arises. Modification of the business strategy, for example, may create a need for a change of the reward system. Also if there is an addition of employees into the company or the market scope enlarges, there may be a rise of a need to change the reward system (Edirisooriyaa, 2014). A flexible reward system will always be in line with the business goals in case of any change in the operations. The reward system should incorporate the future needs of the company. The strategy should be able to accommodate the future demand of the company, and in case of change of the need, the plan should be in a position to address it and keeps the business moving.
The total reward strategy in the Cheesy Pizza Company is associated with many significant advantages. The benefits include compensation, bonuses, benefits, and potential growth not forgetting incentive pay. Flexibility can be increased using the strategy because it includes relational and transactional rewards, which can promote employee motivation and retention. The workers can be flexible since they can make choices how, where, and when to work. The rewards in the Cheesy Pizza Company will acknowledge that the workers have needs and lifestyles that should be incorporated into their work. The rewards strategy will enhance retention and recruitment of workers. Organizations face several challenges or shortages associated with recruitme...
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