Reward System Design for our organization

A fair financial reward system is immensely important for any organization and we are thus planning to not only adopt a reward system which is based on merit and performance but which is also inherently fair. After discussing the five important components of the new design, we shall discuss how a reward system can be fair as well.

Following are five important components of the 'Reward System' which we need to consider for designing a new reward system for our company.

Direct Compensation: Direct compensation is generally considered the basic pay that employees get in return to their service. These may include direct wages, overtime, penalty rates, holiday and long service leave, training, meals, pay-roll tax etc. This is indeed the basic component of the reward system and can be considered a foundation for all other incentives. Whatever the wage system is, it should...
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