Rewards System

Monetary Rewards

Rewards which pertain to money, finance, or currency

Praise

a form of nonmonetary, intrinsic reward given by superiors to their subordinates when they express oral or verbal appreciation for excellent job performance.

Stock options

are plans that grant employees the right to buy a specific number of shares of the organization's stock at a guaranteed price during a selected period.

Pay/ Salary

financial remuneration given in exchange for work performance that will help the organization attain its goals. Examples are weekly, monthly, or hourly pay, piecework compensation, etc.

Benefits

indirect forms of compensation given to employees/workers for the purpose of improving the quality of their work and personal lives. Examples are health care benefits, retirement benefits, educational benefits.

Incentives

rewards are based upon a pay-for-performance philosophy.

Nonmonetary Rewards

rewards are rewards which do not pertain to money, finance, or currency but refer to intrinsic rewards that are self-granted and which have a positive psychological effect on the employee who receives them.

Incentives

It establishes a baseline performance that employees or groups of employees must reach in order to be given reward or payment. Examples are bonuses, merit pay, sales incentives, etc.

Executive pay

a compensation for executives of organizations which consists of five components: basic salary, bonuses, stock plans, benefits, and perquisites.

Award

nonmonetary reward that may be given to individual employees or groups/teams for meritorious service or outstanding performance. Trophies, medals, or certificates of recognition may be given instead of cash or extrinsic rewards.