Employee Rewards Essay

IntroductionThe purpose of this essay is to livelyly poke into the processes subprogramd by Scotia learning and identify if their recompenses be appropriate to those of the marketplace. The report volition begin by discussing the background of Scotia study and follow on to mark dedicateoff circumspection soaringlighting the objective and constraints deep trim the reenforce st straddlegy. We volition then consider the effective frame campaign and examine why there atomic number 18 variations in deliver and how pargonnthoodage rating buns figure equity and fairness is achieved. Finally we will discuss the concept of motivation and the implications of even out for surgical operation in spite of appearance the reward strategy. The report ends with an analysis of the detect issues of the maskingic. Scotia skill is the case study for this essay and is mavin of a net ply of university- base study centres offering breeding for students wishing to study infr agraduate and postgraduate degrees for feeler into university degree courses. The comp either has joint venture partnerships with top universities throughout the United Kingdom, Ireland and United States of America.Reward forethought is concerned with the crapulation and implementation of strategies and policies that aim to reward pack fairly, equitably and consistently in accord with their shelter to the establishment (Armstrong & Murlis, 2007, p3). Research by Redman & Wilkinson (2009) indicates that reward is an enormously complex issue and has to take count on of three fundamental principles in determining agreements and structures upcountry equity, external equity and commerce strategy. In extension Thorpe & Homan (2000) terra firma that the scheme should identify what objectives and deportments the chip inment frame should take a route for example, labour market competitiveness and perplexity skills whilst Perkins & White (2009) highlight the splendor of l evelheaded regulations that earth-closet put constraints on organisations, for example minimum take (legal), collective bargaining (trade concretions), and the external labour markets.Scotia study does non recognise a trade union but it does recognise that collective bargaining has been prestigious in discussing and setting wear ar seethement referable to congenital and external rates of indemnify not being live. at heart the employment legislation carry has always been an argona of contr everyplacesy especially when genius considers employees collective concerns (Brown et al., 2003). The introduction of The Equal fee Act 1970 outlawing unequal invent for men and women having since evolved into equal profit for equal work and the Equal brook (Amendment) Regulations 1983 after the UK joined the EU in 1973 (Perkins & White, 2009), today gives employees a certain degree of protection in their employment relationship.To strengthen current legislation The comp atomic number 18 Act 2010 was introduced highlighting human rights and discriminatory factors, such as equal comport, sex discrimination, race, disability and comparability (religion, sexual orientation, and age) ( comparison and Human Rights Commission, 2012). In response to this Scotia attainment are aware that they cede a business of care to all employees and comply with the Equal Opportunities form _or_ organisation of government by ensuring the relevant provision is undertaken by film directors and employees ensuring everyone understands the importance of and their responsibilities under this Policy. This is in like manner promoted in all enlisting documents, ensuring that wording of furrow advertisements does not discriminate against any potential appli burn downts.As part of this legislation, employers are licitly affectd to ensure their pay structures are not discriminatory against men and women in terms of valuing work betwixt them in their employment and in nine t o defend themselves against equal pay comes, organisations must be able to prove that the jobs inwardly their grading system are valued according to the job sooner than the gender of the person doing the job. Failure to adhere to these regulations can buoy result in a tribunal claim and if proven the organisation will see to pay all money accrued which can be back assured sise days in England and five years in Scotland. In the case of (Birmingham City Council v Abdulla and former(a)s 2012 UKSC 47), the Supreme Court ruled that equal pay claims brought in the High Court to a greater extent than six months after the end of the claimants employment, which would accommodate been out of era in an employment tribunal, should not be struck out under section 2(3) of the Equal correct Act 1970.The reasons for a claimants failure to bring a timely claim in a tribunal are not relevant in any way to the notion of convenience under section 2(3). (PLC interlocking Law Weekly email). Within Scotia Learning pay and benefits are provided on the initiation of objective criteria, free from discrimination taking into storey the principle of equal pay for equivalent work or work of equal value. In rundown we ensure transparency at bottom the reward system is clear to all employees in that they understand how their pay is worked out and what is required from them to achieve this. Job profiles and person specifications for from each one new vacancy are cadaverous up in keeping with other jobs of a similar size and accountability which focus on the skills, experience and qualifications that are directly relevant to the job. Armstrong & Murlis (2007, p115) state that the payment system is important as it not only conveys a signal to the employees what the organisational priorities are nevertheless(prenominal) in addition acts as a catalyst for wider organisational exchange a becharm reiterated by Armstrong (1996) in which he proposes that the foundations of re ward management are to achieve the various(prenominal) and organisational behaviour that a conjunction needs if the business goals are to be met.Therefore the term employees are the key to elicitd organisational procedure becomes relevant with think to Kessler and Purcell (1994) where they emphasise that payment systems are link up to recruitment, computer storage and motivation of staff and that the determination of pay is not only the interaction of market forces only also employers. It is also acknowledged that variations in pay can occur for a variety of reasons and from a legal perspective it is important to understand why (Redman & Wilkinson, 2009). foremost the power scenario, in that if labour is scarce, employees will have more power and hence may be able to demand higher pay, in billet with an over-supply of labour employers have the power and hence may be able to hold pay at lower rates (Redman & Wilkinson, 2009). Secondly, it has been acknowledged that the rat e for the job should be the same for employees doing the same job but considering organisational consummation is reliant on the employees effort, skills and competencies, it is not logical to assume that effort should be rewarded and pay should vary accordingly.A view shared by Redman & Wilkinson (2009, p161) who advocate that variable pay schemes (VPS) are tell to hold out the promise towards the creation of inseparable labour market that is fairer in rewarding people as it is only fair that rewards should have a direct link with effort. The motive with this conjecture is that risk adverse workers will be less willing to gamble on pay related capital punishment than a set amount of pay. Thirdly, we should also take into consideration the external market rate of pay and uneven market pressures such as differing regional or occupational rates of pay as Kessler (2007, p167) states external equity is an organisational imperative as failure to respond the labour market changes wil l leave organisations at a disadvantage competitively. Scotia Learning responds to these challenges by regularly benchmarking and studying the market rate of pay inside the educational sphere. selective information collected is beneficial in determining pay to ensure pay scales are in line with and competitive with similar jobs.For example, when recruiting teaching staff, the use of organisations such as SATEFL and other educational websites are peculiarly useful, for administration staff we would use S1jobs.com and jobseeker.gov.uk website and with management we would use agencies. However, although the aforesaid strategy is very useful, Scotia Learning is a relatively large organisation with Centres worldwide and other factors have to be taken into consideration, such as location and cost of living. In determining the value of jobs within our organisation, although we consider the external market pay rates, lasts concerning pay are done through a coherent wage and line of achie vement structure internal to our organisation which ensures consistency and fairness in our reward systems. It has been reported that issues with this reward system have arisen within the banking sector resulting in Government intervention to quite a little with inequalities of pay setting at senior management/director level and low pay via the subject minimum wage.This is not an area of concern for Scotia Learning as the yearly salary increase is a % rate consistent throughout the organisation and our pay structure process involves a job paygrade a systematic process for establishing the relative worthy of jobs within an organisation Redman & Wilkinson (2009, p141). In addition Scotia Learning is accredited to the British Council and British Accreditation Council and all HR policies and personnel files are properly documented and filed. Our job evaluation comprises of an analytical (i.e., jobs are broken down into single(a) components) broad-band pay structure with a range of factors such as knowledge and skills, problem solving, decision making and then allocating points to them. It is affaireing to smell that enquiry by IRS (2007) showed that an average of 86% of organisations use this form of job evaluation. Within this broad-band pay structure we have 6 wide overlapping salary bands make up of management, HR, teaching staff, finance, student services and clean staff with a salary range for each bank of at least 75%. promotion up the bands will be by skills and qualifications, performance and competence enhanced through individual career education thus supplying the motivation for unvarying learning. To fight back this, the annual performance review takes place, however it is not colligate to pay or rewards and is based on the objectives of skills and competence which are linked to organisational performance. In terms of equity and fairness the rate of pay for full-time and part-time teaching staff is metrical on the same periodic rate conse quently ensuring consistency and fairness within the system. It is interesting to note that research by Redman & Wilkinson (2009, p139) argues that by paying an hourly rate employers control over pace and performance is reliant on either direct lapse or the willingness of employees to engage with the task synonymous with the argument surrounding risk adverse workers.This point of view may be viable in organisations such as call centres where technology enables the monitoring and adjust of work by measuring output and scuttlebutt and within the customer service industry where we have the secret shopper, but within the education sector autonomy is part of the job as is their pro code of ethics which includes commitment, motivation and discretionary behaviour which is contradictory to the argument by Thorpe & Homan (2000) who suggest that non-financial aspects are secondary and ra bank given the same lump in the design of payment systems. Managing rewards is largely nearly managi ng employee expectations linking to their psychological contract which is concerned with pay, performance and the culture of skills (Armstrong & Murlis, 2007).The argument then becomes, if reactions to rewards depend on the psychological makeup, values and needs of individual, one cannot wholly rely on performance related pay schemes to enhance all employees performance as not everyone is make by money. Motivation only takes place if rewards are worthwhile to the individual and if the process is seen to be fair, therefore, it would require to be customised for every individual in the organisation (Armstrong & Murlis, 2007). For example, an employee nearing the end of their career may be more interested in job satisfaction ( intrinsical reward), whereas a graduate beginning their career may be more interested in training and development (extrinsic reward).For that reason it can be argued that both intrinsic rewards such as respect, recognition, job satisfaction and responsibility a re just as important as extrinsic rewards such as pay rises, bonuses, training and development opportunities and benefits such as annual holidays, company sick pay and company pension. This highlights the importance of implementing an trustworthy and fair reward strategy in that by incorporating financial and non-financial rewards is that they can be used as a tool to enhance employee motivation resulting in improved organisational performance. Finally the importance of management skills cannot be undermined as they are a fundamental agent of human resource management. The management strategy within Scotia Learning is based on autonomy, communication and high levels of trust between management and employees. Evidence to support this is the turnover rate of staff with one employee resigning over the past two years and the annual absence levels within Scotia Learning for all staff inclusive stands at 0.1% of working hours, which is the lowest in the inviolate organisation.Conclusi onThis objective of the report was to establish the processes that ensure equity and fairness in the reward systems. We have covered the legal aspects, strategies, market awareness, motivation, job evaluation and performance appraisal and it has become evident that Scotia Learning complies with all legal legislation, and displays equity and fairness within the reward systems. However there was an air of negativity surrounding performance and reward as within Scotia Learning the annual appraisal is not that connected to pay for performance. It is possible that issues could arise if this was implemented, namely, it could naughtily affect the dynamics of the constituent environment between a very closely-nit team of employees, managers and directors in that, how does the manager justify their decision in the event of a low reward without affecting the equilibrium of the office environment and within a unionised organisation all trade unions argue against performance linked to pay.Sc hemes relating pay to performance, although generating a tremendous amount of interest have very little in the way of conclusive evidence concerning their effects on performance (Redman & Wilkinson, (2009). This echoes Thompson (1992) findings in which he states, research fails to provide convert evidence of a link between individual performance-related pay schemes and improvements in productivity. The evidence supports that other approaches should be considered in rewarding employees, for example a one-off bonus payment which would not affect the employees annual salary.ReferencesArmstrong, M. (1996) Employee Reward, London Kogan Page/IPD Armstrong, M., and Murlis, H. (2007) Reward precaution. 5thedn. London hay Group Brown, W., Marginson, P., and Walsh, J. (2003) The management of pay as the knead of collective bargaining diminishes. In P.K. Edwards, Industrial relations Theory and Practice, Oxford Blackwell IRS (2007) Job evaluation is thriving, survey finds occupation Review, 667 Kessler, I. (2007) Reward Choices strategy and equity. In Storey, J. HRM a critical text 3rd edition, London Thomson Learning Kessler, I., and Purcell, J. (1994) exertion Related make Objectives and application, Human Resource commission Journal, Vol.2, No.3 Perkins, S. J., and White, G. (2009) Employee Reward Alternatives, consequences and contexts, 2nd edn. London Chartered land Of Personnel and Development, Redman, T., and Wilkinson, A. (2009) Contemporary Human Resource Management Text & Cases, 3rd edn. London Prentice Hall, Thompson, M. (1992) Pay for Performance The employers experience, Brighton, Institute of Manpower Studies Thorpe, R., and Homan, G (2000) strategical Reward Systems, Harlow Financial Times Williams, S., and Adam-Smith, D. (2006) Contemporary Employment Relations A critical introduction, Oxford University Press Equality of Human Rights Commission, available from http//www.equalityhumanrights.com/human-rights/ date accessed 23/10/12 PLC Employment La w, available from employmentemail.practicallaw.com date accessed 26/10/12