Barcelona and Real Madrid are dominant forces in world soccer as well as domestically in Spain, but what role does reward management play in their success and what can organizations learn from their successful team reward strategies? With organizations increasingly utilizing team work in order to increase company performance and competitive advantage there are some key lessons that they can learn from two of the most successful teams in world sport today.
Key Topics: Team performance; Pay-for-performance; Pay dispersion, Merit pay; Bonuses
Can Employee Innovation Be Bought?
Given the importance of innovation to many companies, the optimal performance of Research & Development employees can be critical to business success. While past research indicates that there is a strong link between monetary rewards and employee performance, this relationship is less clear when it comes to generating employee innovation. A multi-year study in Japan assessed the effect of rewards on the innovation outcomes of Research & Development employees. The study found that, while the relationship differed depending on company size, generally financial reward had a negative impact on employee innovation.
Key Topics: Innovation; Pay-for-performance; Extrinsic reward; R&D employees
With equity-based compensation becoming increasingly prevalent below senior management level in companies, a recent study looked at the relationship between equity-based employee incentives and cross-business-unit collaboration in multi-business companies. The results indicate that providing more junior level managers with equity incentives, in addition to profit-based incentive compensation, can elicit higher collaboration. The findings also suggest that equity-based incentives are generally of greater benefit to large companies in high-growth sectors, for companies chasing a related diversification strategy, and in stock market growth periods.
Key Topics: Equity; Long term incentives; Collaboration; Teamwork
In modern business, developing a rapidly changing and knowledgable workforce to meet business pressures is crucial for company success, and central to this employee development is workplace learning. A study of the Spanish wine industry examined the types of rewards linked to employee training in the workplace, and the how these rewards differed by job categories and job functions. The findings indicated that multiple types of reward are used by companies in incentivising training, with financial rewards being less common than non-financial rewards. The study also found that training related rewards did not differ based on job type.
Key Topics: Training; Rewards; Learning culture
Rewarding Organizational Commitment
Organizational commitment by employees is one of the cornerstones of any successful company and has been shown to significantly impact various performance metrics. A study carried out in China sought to investigate the relationship between organizational commitment and turnover intention, as well as with intrinsic, extrinsic and social rewards. The study results suggest that all of the aforementioned reward types are positively related to organizational commitment, while turnover intentions were found to decrease as commitment increased. Findings also suggest that organizational commitment is related to a number of other factors, including training and autonomy.
Key Topics: Organizational commitment; Turnover intentions; Extrinsic rewards; Intrinsic rewards; Social rewards
An effective recruitment strategy is crucial to organizational success and central to this is the employment proposal to prospective employees. A study at the University of Massachusetts looked at the various aspects of the HR offering, including work life balance, reward, and performance policies, as they relate to prospective employees’ job choice decisions. The results suggest that work life balance has a stronger incentive effect than reward and performance policies, and this was found to be the case across both men and women, although it was a greater incentive to women.
Key Topics: Pay mix policies; Incentives; Work–life balance
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