7RWM Reward Management
- March 4, 2022
- Posted by: admin
- Category: CIPD Level 7
Throughout the 7RWM reward management module, HR professionals will learn how to create a rewarding work environment that aligns with the organisation’s goals. This unit’s human resource experts are responsible for developing policies and strategies essential for keeping employees in an organisation. Therefore, learners in the unit are expected to gain a solid understanding of the industrial and market trends influencing decision-making on employee-rewarding issues. While studying the unit, students will learn about the following topics, which are crucial in developing an understanding of the reward management module.
Organisational reward policies: tools for analysis
The PESTLE and SWOT analysis tools help analyse the external and internal factors that affect an organisation’s compensation policies. In order to identify external factors, these tools analyse the market and the industry in which the organisation operates. As a result, professionals in Human Resources can identify trends and establish the most appropriate policies for determining the types of rewards to implement. As students develop reward strategies for organisations, they should learn to effectively use analysis tools to identify factors that can influence decisions. To improve good decision making in terms of rewards, students must learn how to relate the identified factors to actual cases within the organisation.
Rewards intelligence refers to the information obtained by HR professionals on reward-related matters. Students should learn that surveys, market intelligence, and advertisements from other businesses are the most effective methods to gather reward intelligence. (CIPD, 2015) These are considered reward intelligence drivers, which help professionals make informed decisions about pay, compensation, and benefits for employees.
The principles of total rewards
Through this unit, students learn the importance of valuing employees who work for an organisation and developing the right reward strategies to benefit the employees as individuals and the company as a whole. Employees receiving total rewards will be rewarded both financially and non-financially. Additionally, workforce preferences are heavily weighted in determining which rewards programs to offer to employees. Additionally, there is the issue of reward for performance, in which employees are rewarded according to their performance. As a result, students should understand how to determine the appropriate total reward packages to offer to employees. In developing reward strategies, the type of organisation should be considered (Ekwochi, Eneh, and Orga, 2017).
Rewards that are fair, equitable, consistent, and transparent
In this course, students will learn that their role as HR professionals entails developing policies that promote fairness and equity in employee compensation. Armstrong (2009) argues that fairness, consistency, and transparency are the three most essential pillars of reward management. Employees and other stakeholders of the organisation thus benefit from this since it reinforces organisational values. To ensure they learn how to make every employee feel appreciated and compensated appropriately for their contributions, students should familiarise themselves with the organisation’s rewards objectives. When organisations promote fairness, equality, consistency, and transparency in their compensation and reward practices, they experience high employee satisfaction and morale levels, resulting in high employee productivity.
This course should help students understand the difference between intrinsic and extrinsic rewards, as organisations and HR professionals promote fairness and transparency. Personal fulfilment and enjoyment are intrinsic rewards that derive from inside the individual. Individuals cannot provide intrinsic rewards since employers provide them. Employees are thought to be motivated by both rewards. Students learn about their rights as employees, and as a result, they are more aware of their rights when it comes to receiving rewards at work.
Contribution of line managers to reward decision making
The line manager must ensure that the line manager influences the payment decisions made by HR professionals. This is essential because line managers interact with employees directly and are aware of their contributions to the company. This is more applicable to performance-based rewards, where line managers measure employees’ performance. Regarding employee compensation, line managers should be given authority to evaluate the most critical decisions. Organisations can, for instance, determine which compensation packages will improve employee satisfaction by monitoring their managers’ behaviour. The students in this course should realise that HR experts have a limited amount of power and influence in determining employee pay and benefits. It is instead incumbent upon managers who are directly responsible for the well-being of their employees to make such decisions.
Aims of learning
After completing this course, learners should:
- Understanding how reward decisions are influenced in each business unit and knowing the context of reward management will help you make better rewards decisions.
- Develop organisational reward policies and principles by utilising reward intelligence
- Learn the meaning of fairness, equity, consistency, and transparency when it comes to rewarding employees in the workplace
- Be able to describe your organisation’s reward policy initiatives and how they are implemented, as well as how line managers are involved in rewards decisions.
Career development opportunities exist in the reward management unit for HR professionals. Information that helps people devise the best reward strategies for their employees within the company is provided by the unit to improve decision-making processes and develop effective strategies and policies. Students will have gained knowledge and increased skills after completing the unit, enabling them to take appropriate actions and make informed decisions about rewards management. Moreover, the HR Unit determines how HR and organisational line managers interact to assess their roles within the overall organisation.