Question

How Rewards and Recognition are impacting the organization’s fixed and variable pay standards?

Answer 1

Reward and recognition

It is the activity in which we engage in to acknowledge exceptional performance and encourage specific values or behaviours.its a kind of appreciaation.

Types of Employee Rewards and Recognition

• Bonuses. There are many types of bonuses, ranging from small to large.
• Written praise. Writing thank-you notes can not only show appreciation, but is tangible proof of an employee's contributions.
• Verbal praise.
• Employee's first day
• Birthdays.
• Employee Appreciation Day.
• Work anniversaries.
• Project completion.

How Rewards and Recognition are impacting the organization’s fixed and variable pay standards?

In order to reap benefits such as increased productivity, the entrepreneur designing a reward program must identify company or group goals to be reached and the behaviors or performance that will contribute to this. While this may seem obvious, companies frequently make the mistake of rewarding behaviors or achievements that either fail to further business goals or actually sabotage them. If teamwork is a business goal, a bonus system rewarding individuals who improve their productivity by themselves or at the expense of another does not make sense. Likewise, if quality is an important issue for an entrepreneur, the reward system that he or she designs should not emphasize rewarding the quantity of work accomplished by a business unit.

Variable pay or pay-for-performance is a compensation program in which a portion of a person's pay is considered "at risk." Variable pay can be tied to the performance of the company, the results of a business unit, an individual's accomplishments, or any combination of these.they increase the fixed costs of a company as opposed to variable pay increases, such as bonuses, which have to be "re-earned" each year.

Fixed pay is the fixed amount of salary that an employee gets at the end of the month whereas Variable pay is the incentive paid to the employee, monetary or non-monetary, based on their performance for the month. The ratio of fixed to the variable component, as a norm, varies based on the role the employee plays. Rewards and Recognition plays an important role in the companies fixed and variable pay standards . as the Rewards and Recognition increases the variable pay increases. Variable pay can be tied to the performance of the company, the results of a business unit, an individual's accomplishments, or any combination of these.they increase the fixed costs of a company as opposed to variable pay increases, such as bonuses, which have to be "re-earned" each year. When employees hit their goals (aka quota), variable pay is provided as a type of bonus, incentive pay, or commission. Base salary, on the other hand, is fixed and paid out regardless of employees meeting their goals.