REWARD
Rewards are necessary if organisations want their employees to remain focused and motivated. Firms should reward two types of employee activity: performance and behaviour. Performance is the easier of the two to address since the goals set at the start are achieved, which therefore need rewarding. Rewarding specific behaviours that makes a significant difference to a company is more challenging.
REWARDS AT TESCO
Tesco is the leading supermarket and have obtained far greater share in the market in comparison to its competitors. They do things which matter not only to their consumers, but also to their employees. Equal opportunity is essential and Tesco ensures the working environment is a great place to work in by treating each employee with respect. Employees benefit in terms of rewards and recognition whilst working at Tesco. Rewards and benefits are offered to those that perform well when working and meeting targets or making a significant difference. By excelling and being recognised and rewarded for doing so, it only motivates the individual to remain focus and keep performing at such high standards. Some of the rewards offered at Tesco:
Staff Privilegecard- Tesco rewards those that have been loyal and worked for the company for over a year by giving them their Privilegecard. It is a staff loyalty card that gives you 10% discount as well as Clubcard points on various Tesco products. In addition, these employees can also get access to exclusive staff discounts with Tesco Telecoms and Tesco Personal Finance.
Pension- financial security for the future is important and planning ahead is made easier with Tesco offering their award winning pension scheme. Having acquired this pension, employees can get an idea how financially secure they will be once they have retired. In addition, the employees are entitled to life assurance scheme, which provides financial security for the family.
Protecting your health- reward is not just money; maintaining a good health is important and therefore to ensure their employees do not spend heavily on staying fit, Tesco offer great discounts with top healthcare companies. They offer exclusive discounted rates on health cash plans, private medical insurance and dental cover for their staff.
(Tesco-careers, 2011)
CHIEF EXECUTIVE BONUSES
| FOR | AGAINST |
| Chief executives are high up in the organisation hierarchy. They are there for a reason; they possess relevant skills and qualifications which have got them where they are now. Bonuses will only encourage them to perform better. | Offering high bonuses when the firm has underperformed is only increasing the company’s costs. |
| By offering healthy bonus to chief executives, it will lead to motivation, which will help them turn the current situation of underperformance round and improve company’s profit levels. | The chief executives should only get rewarded if they are worthy of it. There might be some disagreements between other employees within the organisation if the chief executives keep getting high bonuses even when they do not deserve it. This may lead to de-motivation and a decline in performance. |
| They are heavily involved in decision making and carry out various jobs as part of their responsibilities and therefore it is only fair for them to be rewarded with healthy bonuses. | The company will have less money to invest into the business itself if they offer large bonuses to chief executives. |
To conclude, employees respond to being rewarded by working harder and increasing their contribution to the organisation. If employees do not feel appreciated of their efforts by the company, this could cause a low self-esteem, which results in their efforts diminishing leading to minimal level of performance. Therefore, organisations tend to promote cultures of employee recognition and appreciation to get the best results out of their employees.
REFERENCE
Tesco-careers (2011) Rewards and Benefits [online] Available from:
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