5RMT Reward Management
- January 14, 2022
- Posted by: admin
- Category: CIPD Level 5
Introduction to the unit
5RMT Reward Management aims to help learners understand reward strategies and acquire the knowledge necessary for reward professionals to make the right decisions so those reward strategies are implemented successfully. In this unit, participants will understand the approaches used by professionals to enhance the management of reward practices within organisations. The rewards unit of reward management is responsible for developing approaches used by professionals to ensure that employees are paid fairly and equitably. Learning this unit allows learners to understand workers’ values and thus identify the strategies that must be applied in creating value for the people working in a particular organisation. As a result, organisations promote employee performance and productivity through effective reward systems.
Managing pay and compensation for employees can be challenging for HR professionals, who use the reward management unit to assist them. As a result of the changing labour market regulations and work flexibility, rewards need to be managed by professionals. These changes contribute to how employees are paid based on their skills, contributions to the organisation, and their experience and commitment. Thus, students pursuing the course should be keen to ensure that they are just in making decisions and judgements supporting the fair compensation of employees.
Equal and transparent pay management
Learners of the unit need to recognise that equal pay is a fundamental aspect of promoting equality. Learners can ensure that they promote equal pay to employees in different ways. Pay structures are used to organise how pay is graded in an organisation. The pay structure is also used to determine pay increases depending on the employees’ performance, skills, and competencies. The learners’ responsibility is to ensure that they understand the complexity of the situations that influence or influence reward and compensation decisions.
Additionally, transparency is considered a significant factor in managing rewards in an organisation. It is the employer’s responsibility to promote pay transparency, an attribute that provides people with added value and supports both the business and its people. Therefore, the unit provides insight into the system’s factors to promote equal pay for all employees. As a result, the knowledge gained from the unit is key to how effectively information influences decisions made by professionals regarding equal and transparent pay and rewards.
Why do people ask for a pay rise?
Learners need to understand that employees ask for pay raises for a variety of reasons and that they must be able to reason with these issues if they are to learn what the expectations of the employees are. The unit provides information on these reasons and various factors influencing them, such as the age and generation of the employees and the workplace, whether they work in a public organisation or a private one. While some employees find it difficult to explain why they need pay rises, some say they don’t need pay rises because they are comfortable or believe that the pay they receive keeps them in a comfortable position. Thus, the unit is intended to help learners become familiar with how they should approach employees and introduce new approaches to understanding the pay structure and increase in pay for employees.
Role of line managers in managing pay
Line managers are heavily involved in the payment management process in their organisations. They can make recommendations regarding how pay increases are implemented for employees. However, HR professionals need to understand that managers are only contribution agents, as they rarely approve salary increases. Thus, learners must ensure they get the correct information from their line managers and use it to make informed decisions regarding pay increases. As part of their line management duties, line managers ensure that their subordinates know about the pay policies. In most cases, employees get information about pay and benefits from their immediate management, so the management should be involved as they are the ones who deal with the employees directly. This unit emphasises the concept of pay risk, which has to be effectively managed to ensure that the problems associated with pay decisions are addressed in a way that will support organisational change and improvement.
At the end of the course, students should:
- Develop an understanding of how strategies in the workplace and reward systems contribute to organisational success
- Understand the theoretical debates involved in promoting the management of rewards within the organisation
- Be able to compare traditional, contingent, and knowledge-based rewards
- Understand how to design pay and reward structures acceptable on the labour market, which contribute significantly to providing employees with equitable pay.
- Find out how to analyse the executive pay of employees working in the global labour market, paying interest to expatriates on that market.
- Identify critical issues related to reward management and ensure the right approach is considered when managing pay and rewards for employees.
The unit is suitable for;
- Students who are studying HR and who wish to gain more expertise in the field.
- HR professionals take responsibility for HR decision-making in their workplaces, at any level of business operation.
- Employees who perform some HR functions within the organisation but do not have any specialisation in HR
- Human resources consultants who are independent within the organisation and support them in meeting their goals and objectives
- Learning professionals who desire to develop their careers in HR and pursue other CIPD units
This unit is part of the CIPD Level 5, and students taking the unit are required to complete an assessment that requires them to describe the reward environment in an organisation they know or work in. The assessment covers the aspects of fair and transparent pay, pay progression, and line management’s role in managing rewards.