Growing attention towards the adoption of rewards as a catalyst to boost the performance of employees in modern organizations places emphasis on the cost-benefit analysis of retention strategies. For the ultimate result of retaining talent within the organization, a sense of rewards consciousness has to be developed. This makes the employees feel good and they are motivated to move towards the management's objectives.
It is often observed that talented employees prefer to stay with employers who value and recognize their professional achievements. As such, the greatest transformation in the history of the corporate world in recent times has been the growing awareness towards `quality management' through employee-oriented strategies which give due attention to attributes like increasing motivation and promoting efficiency levels. Since it is proved that unrecognized and non-valued performance can lead to a high turnover, growing investments towards sustaining human capital in various forms are a healthy sign of the emerging organization. The conceptualization of `employee welfare' has taken a definite shape, with the enactment of diverse strategies as part of corporate governance not only to meet market demands through quality services and products, but also to promote a healthy environment within the organization. This naturally led to the evolution of the concept of rewards and their effective management becomes an important component of human resources management. Enterprise Incentives Management (EIM) is an emerging area of attention in corporate circles, one that is expected to stimulate employee performance. In some contexts, it is associated with employee retention strategies also. This change in perception is making the involvement of various consultancies necessary, to help the organization to implement integrated performance-based compensation plans at regular intervals. The concept of variable pay that comes into the picture in this regard forms between 35-40% of an employee's pay internationally. The Wilson group in Massachusetts (US) is one such example that is extending services to the corporate sector's management of rewards in various forms. Besides, this is also being accepted as a tool to initiate a sense of loyalty to the organization as well as to promote the employee's interest in his work. This is where the concept of pay-for-performance comes into being. It also works as a performance analyzer.
The organization's behavior pattern depends on the mindset of the workforcewhether it is molded towards achievement of corporate objectives or not. There is every justification behind promoting reciprocal relationships between employees and managers. This is found to be necessary in facilitating an atmosphere of fascination towards the job that makes employees perform well and stay back in the organization. The growing turnover in most of the corporate enterprises makes it imperative that the management devises new methods of retaining the talented workforce. For this purpose, the mentoring concept emerged. |
