What Reward Systems Effect the Organization?

People deserve what they should get. As long as they are working for your company or organization, why not provide them with more reward in addition to the current salary. There are two types of effect of reward: Performance and Membership.

• Performance is the result of your work. Any reward effects performance will lead the employees to perform well in the future compared to the current performance.
• Membership is the image of your company or organization to the public. A company with a good membership will motivate people to seek the job in that company and the existing employees want to remain in the job.
  

There are many kinds of reward systems that every company or organization can implement. Basically there are two types of reward systems: Cash-Based reward system and Non-Cased-Based reward system. Both of which effect Performance and/or Membership.

For example, increase in salary in a particular period will effect membership not performance since every employee knows that their salary will increase by the end of each year so he or she don't have to work well. The increase in salary in a particular period will motivate people want to work for your company while expecting the high salary.

To make the increase in salary effects Performance, the company or organization should set a clear policy. The salary should increase base on the result of work. If the employee can complete his or her work 100% then he or she should be able to get 20% by the end of the year.

What Reward Systems Effect the Organization?