|Subject||5HR03 Reward for Performance and Contribution|
This unit focuses on how internal and external business factors influence reward strategies and policies, the financial drivers of the organization, and the impact of reward costs. It considers the importance of the role of people practice in supporting managers to make robust and professional reward judgments and the impact of rewarding performance.
Leia Technologies was formed in 2017 and employs 75 people. Recently the company has launched its new app “Money4Future” and provides saving and investment products including Lifetime ISAs, pensions and saving accounts.
After a hectic start-up, the company’s HR team is now able to reflect on its reward strategies and policies. They recognize due to the growth of the company, and the number of new people within the HR team, that there are some gaps in knowledge about Rewards for Performance and Contribution.
As a senior member of the HR Team, you have received a request from a colleague for an understanding of the issues relating to the impact of reward approaches and packages, how benchmarking data can inform reward approaches, and the role of people professionals in supporting
Your manager has asked you to produce a guidance document to be sent to your colleagues and a blog article to be placed on the HR Team’s online news page.
Task One – Guidance Document
You have received a request from a colleague for an understanding of issues relating to the impact of reward approaches and packages. They also want to understand how benchmarking data can inform reward approaches.
Generate a guidance document that covers these two areas, including current models and thinking around the subject. You may wish to break down the guidance document into the following sections:
Section 1 – The Impact of Reward Approaches and Packages
- Evaluate the principles of reward and its importance to organisational culture and performance management.
- Explain how policy initiatives and practices are implemented.
- Explain how people and organisational performance can impact on the approach to reward.
- Compare the different types of benefits offered by organisations and the merits of each.
- Assess the contribution of extrinsic and intrinsic rewards to improving employee contribution and sustained organizational performance.
Section 2 – Benchmarking Data to Inform Reward Approaches
- Assess the business context of the reward environment
- Evaluate the most appropriate ways in which benchmarking data can be gathered and measured to develop insight.
- Develop organizational reward packages and approaches based on insight.
- Explain the legislative requirements that impact reward practice.