User:Tcooper7/sandbox

...and align their actions with the strategic goals and cultural beliefs of the Organisation or Business.

In its simplest form, Reward is composed of 3 fundamental pillars. These being, Basic Pay, Variable Pay and Benefits. The first fundamental of reward begins with Basic Pay or Salary. This is an agreed upon amount of Money, awarded to an employee in exchange for an agreed upon service, outlined within the relevant employment contract or Earnings Based Agreement (EBA). Basic Pay is Fixed, Consistent and Guaranteed. Another form of Reward is Variable Pay. Variable pay in a traditional sense is a performance-based method of reward and can take appear in many forms. Unlike Basic Pay, Variable Pay may be inconsistent as suggested by its name. Variable Pay may be linked to factors such as output, attitude, or other Key Performance Indicators. Variable pay may come in the form of Commissions, Bonus’s, or Profit-Sharing Plans. Benefits are also used as a Reward. Benefits are tangible items that may include Company Vehicles, shares in the Company or Holiday Pay Entitlements to incentivise employees

as well as aligning the actions to reflect the culture, aims and beliefs a business or organisation wishes to uphold.

Ultimately, Reward Management is a tool that uses various types of Employee Motivation to align the strategic and cultural goals of an employee, or group of employees, with the tactical targets set by a business or organisation.

A method of applying a complete reward strategy is by pairing the use of Extrinsic Rewards with that of Intrinsic Rewards.