Rewards

Introduction

This blog demonstrates a brief explanation and comparison between one of the companies from the Times top 100 SME companies for work and one from the Times top 100 large organisations. It contains with financial and Non-Financial rewards systems of each company offer their employees. Furthermore blog illustrates the contrast of the approaches used by these two different companies and the reasons might be affected to these differences.

Rewards

Reward management is about the design, implementation, maintenance, communication and evolution of reward process which help organisations to improve performances and achieve their objectives. (Murlis, 1994)

A reward system in an organisation consists with financial and non-financial components. Some examples for financial rewards are

• Basic salary
• Performance Bonuses
• Travelling Allowances
• Company Car
• Medical schemes
• Commissions
• Profit sharing schemes   etc. 

Some examples for Non- Financial rewards are

• Recognition
• Job enlargement
• Job rotations
• Work life balance
• Flexible working
• Opportunity to develop skills etc.

Why do companies offer rewards to their employees

• To attract and retain skilled/qualified employees
• Improve individual corporate performances
• Improve employee motivation to contribute to their maximum
• To support the corporate strategy
• Comply with legal obligations
• To maintain equity

TGI FRiDAYS

According to the Times 2013 rankings, FRiDAY is one of the top 100 large companies which has achieved 3^rd place in rank. It is an American Restaurant Chain for casual dining which has spread in 61 countries all over the world with their promise of “In here, it’s always Friday”. TGI FRiDAYS was founded in 1972 and it has achieved and met with success along this history.  In UK FRiDAYS chain has 4114 employees to meet the customer requirements. FRiDAYS offers number of rewards financial and non- financial to their employees.

Financial rewards offer to employees

1. Great health care coverage including medical, dental, vision – FRiDAYS provide great health care package to all their team members to motivate and inspired them in work with.
2. Paid vacations- Team members may offered by paid vacations to get a chance to enjoy with their friends and family to ensure relax for their busy lives.
3. Dining discounts- Team members have special discount package to dining themselves and also for their families.
4. Home and auto insurances- FRiDAYS offers home and auto insurance schemes for employees via payroll deductions.
5. Performances related pay- Team members offered overtime pay, considerable hourly rate, bonuses on achieving targets for inspire their individual contribution to the organisation
6. Educational Assistance- Team members who are working while studying have opportunities to apply for student loans and tuition reimbursements for their future prosperity.

Non-Financial rewards offer to employees

1. Work life balance-It is great a reward the team members offered which helps to increase the value of life by balancing both career and their personnel life.
2. Flexible working- FRiDAYS offer flexible working for everyone and it is an opportunity to team members who are working while continuing their studies.
3. Wellness programmes- The programmes help to promote good health and safety habits is a non-financial reward customers offered. 
4. Leave of absence- Employees may offer leave for the period of time which they are absent from work.
5. Recognition- For appreciate individual performances team members are recognised through staff notice boards, staff meetings and newsletters.

(T.G.I. FRiDAYS, 2013)

Cloudreach

According to the Sunday Times 2013 ranking results, Cloudreach is the number 1 small company for work. Cloudreach relates to internet consult sector and mainly located in London and Edinburgh with the staff of 54 employees. Cloudreach provide wide range of services such as consultancy, migration services, develop applications and managed services. Employees meet the success of their customer requirements with their 4 values called respect individual and individuality, be easy to work, promote personnel growth and be one step ahead. As the best small company for work cloudreach provides wide range of reward system to their employees. Therefore some examples are following,

Financial Rewards

1. Performances related pay- Employees offered Annual bonus of 10% of basic salary base on individual performances.
2. Retirement planning- Stakeholder pension scheme with Aviva provide to employees to improve motivation.
3. Share options- Company share options award to employees by reviewing annual performances.
4. Child care vouchers
5. Free breakfast and lunches- All employees may provide breakfast in company kitchen and lunches from restaurants around office location.
6. Paid holidays- Offer 25 days per year plus extra day for each full year as paid holidays.

Non- Financial Rewards

1. Recognition- Cloudreach provides great recognition within the company when the employees reach to their defined goals and targets.
2. Flexible working- Employees has chance to work flexibly to increase the creativity and innovations which could make benefits to the organisation.
3. Work life balance- Friendly and relax working environment, day off for the birthday, day outing for lunches, holiday offers are some of the best reasons for balancing the work and the personnel life for employees in Cloudreach.
4. Guidance and support for develop skills- It is a great opportunity to employees that they are appointing to a training programmes with high technologies to develop their skills and practices.
5. Career opportunities- Employees may offer some career opportunities with their partners including organisations such as Amazon and Google.

(Cloudreach, 2013)

(The Sunday Times, 2013)

Contrast in reward systems and reasons for the differences

When comparing the rewards strategies of cloudreach and FRiDAYS there are some differences. Both of them offer performance related payments and paid holidays to achieve their own business goals through gaining maximum individual contribution to the organisation and they are effective stimulating strategies most of the companies used. FRiDAYS offer medical coverage schemes, home and auto insurance schemes while Cloudreach offer retirement planning and stock options to recruit and retain high performers to meet the success of the organisation. Dining discounts at FRiDAYS, support for student loans and tuition fees and child care vouchers offer Cloudreach, provide breakfasts and lunches are some of the strategies to maintain market competitiveness and to achieve good public image about the organisations.

When considering non- financial rewards strategies both of these organisations have similar strategies. But he reasons and aims can be different when they are structuring their own policies. The reasons could be recruiting and retain skilled staff, increase productivity through improving employees mental relaxation, achieve market competitiveness, support career development and career progression or maintain internal equity.

However, different organisations observe different reward strategies according to their aims and goals, organisation’s culture, financial stability, degree of the competition. (Chartered Institute of Personnel and Development, 2007)

Conclusion

Organisations observe different reward strategies due to different reasons. Therefore an example demonstarate, FRiDAYS one of the top 100 best large company and Cloudreach on of the top 100 best small company to work  the different rewards methods they use both financially and non- financially.

References

Chartered Institute of Personnel and Development, 2007. Reward Management. [Online]
Available at: http://www.cipd.co.uk/NR/rdonlyres/08FE4AE7-7DD5-4185-9070-F34225A6EB0C/0/rewmansr0107.pdf
[Accessed 3 May 2013].

Cloudreach, 2013. Work with us. [Online]
Available at: https://cloudreach.recruiterbox.com/jobs/6104
[Accessed 2 May 2013].

Murlis, M. A. a. H., 1994. Reward Management. 3rd ed. London: Kogan Page Limited.

T.G.I. FRiDAYS, 2013. The benifit of FRiDAYS. [Online]
Available at: http://www.tgifridays.com/jobs-benefits
[Accessed 1 May 2013].

The Sunday Times, 2013. Cloudreach. [Online]
Available at: http://features.thesundaytimes.co.uk/public/best100companies/live/template
[Accessed 2 May 2013].