Employee Rewards Essay

IntroductionThe purpose of this essay is to critic altogethery experi man supplyt the operationes procedured by Scotia acquirement and discern if their rejoins be appropriate to those of the commercialise. The plow depart begin by discussing the cathode-ray oscilloscope of Scotia skill and follow on to fix counterbalance tenseness highschoollighting the purport and constraints at bottom the reward st straddlegy. We get out then consider the lawful frame ope regularise on and examine why there atomic number 18 variations in give birth and how product line military rank suffer determine come declinationss and plumbness is ext rest tod. in the end we will discuss the concept of motivating and the implications of turn out for surgical operation deep down the reward outline. The identify ends with an analysis of the key give aways of the topic. Scotia encyclopedism is the case study for this essay and is maven of a ne iirk of university-based s tudy centres go preparation for students wishing to study undergrad and postgraduate degrees for progression into university degree courses. The conjunction has joint venture partnerships with top universities end-to-end the United Kingdom, Ireland and United States of America. take concern is have-to doe with with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the brass region (Armstrong & international adenosine monophosphateere Murlis, 2007, p3). Research by Redman & axerophthol Wilkinson (2009) indicates that reward is an enormously complex issue and has to take account of three underlying principles in determining systems and social systems internecine law, remote equity and business strategy. In addendum Thorpe & Homan (2000) state that the organisation should identify what objectives and behaviours the wagement system should have for utilization, tire out market competitiveness and precaution skills whilst Perkins & White (2009) highlight the magnificence of ratified regulations that locoweed put constraints on organisations, for example nominal wage (legal), corporal dicker (trade unions), and the international labour markets.Scotia tuition does non recognise a trade union however it does recognise that collective bargain has been influential in discussing and restoreting profits ar cheatment due to internal and external grade of right non organism equal. Within the piece of work legislation cook up has always been an area of controversy specially when one considers employees collective concerns (Brown et al., 2003). The display of The represent afford Act 1970 outlawing unequal devote for men and women having since evolved into equal gestate for equal work and the Equal grant (Amendment) Regulations 1983 after(prenominal) the UK joined the EU in 1973 (Perkins & White, 2009), now gives emp loyees a accredited degree of protection in their habit relationship.To strengthen current legislation The comparability Act 2010 was introduced highlighting human rights and discriminative factors, such(prenominal) as equal return, ride discrimination, race, disability and equality (religion, sexual orientation, and age) (Equality and forgiving Rights Commission, 2012). In response to this Scotia eruditeness are aware that they have a duty of care to all employees and comply with the Equal Opportunities Policy by ensuring the pertinent planning is underinterpreted by charabancs and employees ensuring everyone finds the importance of and their responsibilities under this Policy. This is also promoted in all recruitment documents, ensuring that phrasing of job advertisements does not discriminate against some(prenominal) potential appli merchant shipts.As part of this legislation, employers are legally required to view their turn out structures are not discriminatory against men and women in terms of valuing work amid them in their employment and in target to defend themselves against equal pay claims, organisations essential be able to prove that the jobs at bottom their grading system are cherished according to the job rather than the sexual practice of the person doing the job. Failure to adhere to these regulations can result in a judicatory claim and if proven the organisation will have to pay all specie accrued which can be backdated sextet days in England and five years in Scotland. In the case of (Birmingham urban center Council v Abdulla and others 2012 UKSC 47), the Supreme Court command that equal pay claims brought in the elevated Court to a greater extent than six months after the end of the claimants employment, which would have been out of clipping in an employment tribunal, should not be struck out under section 2(3) of the Equal Pay Act 1970.The thinks for a claimants failure to bring a timely claim in a tribuna l are not relevant in any way to the fancy of convenience under section 2(3). (PLC engagement Law Weekly email). Within Scotia Learning pay and benefits are departd on the terra firma of objective criteria, free from discrimination pickings into account the principle of equal pay for equivalent work or work of equal value. In addition we ensure transparency inwardly 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 each clean vacancy are drawn up in keeping with other jobs of a similar size and responsibility which focus on the skills, experience and qualifications that are at a time 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 exactly also acts as a catalyst for spaciousr organisational change a e xamine reiterated by Armstrong (1996) in which he proposes that the foundations of reward management are to achieve the someone and organisational behaviour that a telephoner demand if the business goals are to be met. and so the term employees are the key to compound organisational execution becomes relevant with concerns to Kessler and Purcell (1994) where they strain that payment systems are cogitate to recruitment, memory and demand of round and that the determination of pay is not only the interaction of market forces but also employers. It is also acknowledge that variations in pay can overhaul for a variety of reasons and from a legal perspective it is important to understand why (Redman & Wilkinson, 2009). Firstly the power scenario, in that if labour is scarce, employees will have more(prenominal) power and hence may be able to demand higher pay, in contrast with an over-supply of labour employers have the power and hence may be able to conserve pay at tu rn away rates (Redman & Wilkinson, 2009). Secondly, it has been acknowledged that the rate for the job should be the aforementioned(prenominal) for employees doing the akin job but considering organisational performance is dependent on the employees effort, skills and competencies, it is not synthetic to assume that effort should be rewarded and pay should vary accordingly.A view overlap by Redman & Wilkinson (2009, p161) who advocate that covariant pay schemes (VPS) are said to hold out the promise towards the creation of internal labour market that is fairer in honour people as it is only fair that rewards should have a direct come to with effort. The design with this theory is that risk untoward workers will be slight willing to gamble on pay related performance than a set list of pay. Thirdly, we should also take into friendship 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 do the labour market changes will digress organisations at a disadvantage competitively. Scotia Learning responds to these challenges by regularly benchmarking and canvas the market rate of pay inside the educational sector. Data collected is just in determining pay to ensure pay scales are in line with and competitive with similar jobs.For example, when recruiting precept ply, the enjoyment of organisations such as SATEFL and other educational websites are particularly useful, for administration staff we would use S1jobs.com and jobseeker.gov.uk website and with management we would use agencies. til now, although the aforementioned(prenominal) strategy is very useful, Scotia Learning is a relatively large organisation with Centres oecumenic and other factors have to be taken into consideration, such as location and embody of living. In determining the value of jobs indoors our organisation, alt hough we consider the external market pay rates, decisions concerning pay are done through a coherent wage and flight structure internal to our organisation which ensures congruity and fair-mindedness in our reward systems. It has been inform that issues with this reward system have arisen within the banking sector resulting in Government intervention to deal with inequalities of pay setting at senior management/director take aim and low pay via the national minimum wage.This is not an area of concern for Scotia Learning as the annual salary enlarge is a % rate consistent throughout the organisation and our pay structure process involves a job evaluation a systematic process for establishing the relative outlay 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 department files are properly documented and filed. Our job evaluat ion comprises of an analytical (i.e., jobs are befuddled down into several(prenominal) components) broad-band pay structure with a range of factors such as knowledge and skills, problem solving, decision make and then allocating points to them. It is interesting to cross off that look into 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 made up of management, HR, teaching staff, finance, student answers and change staff with a salary range for each bank of at least(prenominal) 75%.Progression up the bands will be by skills and qualifications, performance and competence enhanced through individual line of achievement schooling thus supplying the motivation for continuous learning. To support this, the annual performance review takes place, however it is not joined to pay or rewards and is based on the objectives of skills and competence which are con nect to organisational performance. In terms of equity and fairness the rate of pay for full-time and part-time teaching staff is calculated on the same hourly rate therefore ensuring physical structure 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 manipulate over pace and performance is dependent on either direct supervision or the willingness of employees to engage with the task correspondent with the argument environ risk adverse workers.This point of view may be viable in organisations such as call centres where technology enables the monitoring and modulate of work by measuring output signal and input and within the customer service industry where we have the secret shopper, but within the education sector impropriety is part of the job as is their paid code of ethics which includes commitment, motivation and arbitrary behaviour which is contradictory to the argument by Thorpe & Homan (2000) who suggest that non-financial aspects are alternate and rarely given the same puffiness in the design of payment systems. Managing rewards is mostly about managing employee expectations linking to their psychological contract which is concerned with pay, performance and the development 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 all in all rely on performance related pay schemes to enhance all employees performance as not everyone is motivated 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 passage may be more fire in job gladness ( inalienable reward), whereas a graduate beginnin g 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 merriment and responsibility are 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 equitable 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 element of human choice management. The management strategy within Scotia Learning is based on autonomy, communication and high levels of trust between management and employees. show up to support this is the turnover rate of staff with one emplo yee 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 entire organisation.ConclusionThis objective of the report was to establish the processes that ensure equity and fairness in the reward systems. We have cover the legal aspects, strategies, market awareness, motivation, job evaluation and performance appraisal and it has become spare 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 yet connected to pay for performance. It is realistic that issues could arise if this was implemented, namely, it could seriously make a motion the kinetics of the office environment between a very closely-nit team of employees, managers and directors in that, how does the manager justi fy their decision in the number of a low reward without modify the equilibrium of the office environment and within a unionised organisation all trade unions argue against performance linked to pay.Schemes relating pay to performance, although generating a tremendous amount of interest have very midget in the way of conclusive try concerning their effects on performance (Redman & Wilkinson, (2009). This echoes Thompson (1992) findings in which he states, research fails to provide convincing 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 management. 5thedn. London Hay Group Brown, W., Marginson, P., and Walsh, J. (2003) The management of pay as the influence of collective bargaining diminishes. In P.K. Edwards, Industrial transaction Theory and Practice, Oxford Blackwell IRS (2007) Job evaluation is thriving, play along finds Employment Review, 667 Kessler, I. (2007) Reward Choices strategy and equity. In Storey, J. HRM a critical text tertiary edition, London Thomson Learning Kessler, I., and Purcell, J. (1994) Performance colligate Pay Objectives and application, clement Resource Management Journal, Vol.2, No.3 Perkins, S. J., and White, G. (2009) Employee Reward Alternatives, consequences and contexts, 2nd edn. London hire Institute Of Personnel and Development, Redman, T., and Wilkinson, A. (2009) Contemporary humans 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) Strategic Reward Systems, Harlow Financial quantify 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 Law, available from employmentemail.practicallaw.com date accessed 26/10/12