The Changing Landscape of Employee Rewards: Observations and Prescriptions

San Beda University

Graduate School of Business

ANA LYN P. MATIENZO

Delex Pharma International, Inc.

6th Journal Review        

Human Resource Management

Master of Business Administration

August 11, 2018

The changing landscape of employee rewards: Observations and prescriptions

Gerald E. Ledford Jr.

The primary reason why we work is because we want to earn a living, not only for ourselves but also for our family.  Of course, this will be in the form of the rewards that we will be receiving from the company we are working with, which includes the base pay, incentives, benefits, bonuses, etc.  But is getting these rewards satisfy our needs? Some may say “yes”, some may say “no”.  When we bumped into a college friend, we usually ask, “where are you working?”, “how’s the rewards in your company?” and the reply would be “I got great rewards”.  It is normal to think that we will consider applying to that company.  Well, similar incident happened to me, and that is the reason why I am with Delex Pharma now.  Prior to this company, I got three submission of resignations, and three withdrawals of those resignations from my previous work, until the fourth one, I finally decided to leave.  It was hard for me to leave that company, where I stay for more than a decade, because I am thinking that transferring to  another company means adjustments to workplace (longer travel time, higher transportation fare), adaptation of new culture, but I disregarded those factors as I need to get a better rewards.  I need better rewards which will respond to my family’s physiological needs.

I am telling that story, because that is one of the factors that an organization should consider.  How will an organization attract talents through reward system? It is not only the executive / management who will decide on the total rewards to be given to employees. Human Resource (HR) is an indispensable instrument on the rewards system.  How should HR be instrumental in the reward system?  An effective communication is the key.  The HR should effectively explain the reward, ensure that it is well understood by the employees, which should include the benefit to both employees and the organization. There will come a time that an organization’s reward will not be effective anymore 5 to 10 years from now, giving a 15-day vacation leave may be effective now, but not tomorrow, thus there should be a periodic visit on total rewards.