The emerging trends in business and stringent
competition due to globalization of economy have led domestic
and multinational organizations to compete for the same
customer, and also to compete on recruitment and retention
of talent. And, rewarding performance is now a key differentiator
for companies as they look to attract, retain and motivate
their employees. It is necessary to reorient the HR practices
to keep pace with the changes that are taking place both
in the nature of work as well as in the perception of employees
due to increasing opportunities the employees have before
them in today's organizations. The effective implementation
of this will result in achieving the business goals and
enhancing the morale of the employees.
The business scenario has thus led to
radical changes at the `workplace' and demands a paradigm
shift in Human Resources (HR) practices in the organizations.
As a result, employers offer explicit time-bound rewards
for performance to their employees, especially rewards
that enhance an individual's marketability.
For effective implementation of rewards, no single factor holds the key, including financial rewards. Instead, a combination of approaches is necessary to ensure that the employees feel valued and equitably compensated for their efforts. |
