Principles and procedures for monitoring and rewarding employees
A. Explain the London 2010 Project’s job evaluation process and then, lists and explain factors that determine employees’ pay.
The right to equal pay:
The Equivalent Act 2010 provides which there is a right to equal pay to a woman with a man doing for the employer while the woman be employed:
• Mostly similar nature of a job comparing with the male; or
• in a work which, while altered with that of a man, rated as equal to the job of man on a scheme of a job evaluation.
The equivalent Pay (Amendment) rules in 1983 offered to take equal pay for a woman. The two positions are of the same value, an employer will justify variation in pay only while the difference in basic pay is genuinely because of a material factor that has no sex variation.
Claims to the employment tribunal:
While a woman considered as paid less than a pay of man, the woman can be able to concern to a pay tribunal by a Claim Form, called as an ET1. A tribunal can provide appropriate back pay. But, while the employer will proves the variation in pay as of a ‘genuine material factor that has no variation of sex’ then fails the equivalent pay claim.
For job evaluation Implications:
Equal pay law –the equivalent value rules – has essential allusion for job evaluation. Cautious concerning scheme of any job evaluation is equal in its results and is associated to a pay scheme where employee’s job is rewarded equally, without considering of their sex.
B. Classify the varieties of reward systems as discussed in class and critically explain their impact on employees’ performance.
Reward systems:
Employees will not work for free. Mainly businesses are not services of volunteer, so that balance them in some manner for their effort and time.
Types of reward:
Mostly managers considered that people do job for money. However there are two essential kinds of rewards. Which are extrinsic rewards that covers the important requirements of earning to survive, a stability and reliability (the job is secure), and recognition. In other case the intrinsic rewards, probably job satisfaction is more essential need, thought of finishing challenges proficiently, satisfaction, and also the social communications which begins from the place of work.
Objectives:
Reward systems contain three basic objectives: to be a focus on new employees to the business, to obtain good performance at work, and maintain dedication towards the business.
Attraction:
A reward scheme is planned to attract and maintain proper employees. The employers who achieve a reputation as “cheap” suspect to be needed in the job market, due to the potential employees assumed that it will not reward attempt. Such organization is possible to finish up with the person that no one else needed.
Performance:
Rewards are also serves to preserve and develop performance. Related to the Performance pay is mostly popular in present organizations. The major problem with IPRP (individual performance-related pay) is that it imagines pay individually inspires workers, but which is not acceptable.
Commitment:
The reward system proposed to retain and support the psychological contract.
Direct vs. indirect pay
Direct pay is a received employee at their bank account: overtime, base wage/salary, commission, paid leave, merit pay, bonuses, and company profit distribution.
Indirect pay is a “benefits”, referred as a part of the overall reward package to direct pay, as like: life insurance cover and health, pension plans and retirement, health care, company car, health club memberships, subsidized meals, mobile phone, subsidized entertainment.
Government and pay
The government is very strong In North America and Europe control over worker reward. The direct pay amount reduces the tax obtained by employees. Government also has an indirect manipulate over pay. Monetary and Fiscal policy can involve the economy, and adjust employee’s income. further, the public sector usually in western democracies employs a number of people, can force pay tendencies by exercising control on their levels of own pay. While paying employees the entire organizations should follow government legislation.