The definition of reward in terms of organization is one of the questions that always dominate the mind of management as they are concerned how to retain the employees for long run. In concern to this question, the researcher is providing an essay, which clarifies the concept of reward and how the companies reward their employees (Armstrong, 2007).

The basic definition of reward is a thing given in recognition to services, efforts and achievement. These rewards are given not only for performance, but also to motivate the personnel. They feel that their efforts are regularly examined and are being checked as well and as per their efforts being rewarded. It is given in two forms i.e. in monetary and non-monetary terms. Former is in the cash form given to the employees and on the other hand latter  is in kind like insurance policy, medical facility given, flat given etc.  This was just a short synopsis of the kind of rewards, how the organisation gives it to employees shall be discussed below. For this, two companies – one of Times Top 100 SME Company – Full contact; and the other Times Top 100 large organisations – ASANA is taken (White, 2012).

1.     Full Contact: It is a company that provides cloud-based contact management solutions for businesses developers and individuals. Bart Lorang is the CEO of this company. He invented this “paid, paid vacation,” this is a kind of reward that company provides to their employees. In this, company pays for the employees’ vacations and employee are free and need not to work while on vacation (Armstrong, 2007).

2.     ASANA: This Company provides the usual health, dental and vision insurance to retain their employees along with that Asana offers their employees in-house yoga group sessions twice in a week, which let their employees, feel relaxed and cool. The sessions are open to all employees plus one friend, organic lunch and dinner served every day to customise each employee’s diet.

Both companies have different ways of rendering rewards (in specific financial and non-financial) to their employees. Further, an elaboration on different types of financial and non-financial rewards for each company are discussed.


Starting, with 5 ways of non-financial rewards for full contact are: First, praising for good work in front of whole staff (Deeprose, 2007). Second, invitation for spouse for a lunch on the company. Third, pay for them to take a fun class, such as cooking or skydiving. Fourth, give them movie couple ticket. Fifth, providing meal or beverages as per their interest.

Now 5 non-financial rewards for ASANA are: First, create a “day pass” that they can turn in to take any day off, no questions asked. Second, providing gym at the work area to drop down the stress. Third, flexibility on the job regarding part time, full time or allowing pets at work. Fourth, is providing new desk and latest stuffs related to their respective work only because of their good performance. Fifth, sending an appreciation letter to the family of the respective employee.

5 ways of financial rewards of full contact: first, incentive along with the salary for outstanding performance. Second, refund of leaves. Third, travelling allowances given to the employees. Fourth, premium pay means voluntary wage increase for overtime. Fifth, some percentage of the sales that they bring in given to them.

5 ways of financial rewards of ASANA: First, team bonus, means if a bunch of member completed the allotted task on time than the group will be rewarded with cash. Second, offering them the stocks of the company. Third, matching retirement saving incentives act as an optional pension for employees, which also attract the employees. Fourth, paying when an any employee meet any personal accident. Fifth, medical scheme given to the employees.

On comparing the approaches of reward system adopted by both companies, it can be articulated that Full contact Company provides both monetary and non-monetary rewards to their employees while Asana emphasises on the non-monetary rewards, though they are having financial reward as well. Secondly, former company provides paid holidays to their employees which can be unchaste if holidays are not availed. On the other hand, latter company renders the insurance, medical facility and along with that they also provide the yoga classes for the employees and for their family too (Preatheepkanth, 2011).

As discussed above the different approaches of the company, it can be said that the main reason for this difference is the management of full contact company seeks that its employees should have a comfort zone in the organisation and on personal front are satisfied. As if the reason for happiness is company, then it will definitely motivate the employees and retain them.  Whereas the management of Asana is of the view that conducting sessions like that of yoga will make employees relax from the work they carry. Also, this will aid in relieving tension, giving them peace of mind. Concerning this, they provide yoga classes not only to the employees, but also for their family members with special diet lunch (Levi, 2009).

REFRENCES

Books

Armstrong, M., 2007.  A handbook of employee reward management and practice. 2^nd ed. Kogan Page Publishers.

Druker, J. and White, G., 2012. Reward Management: A critical text. Routledge.

Murlis, H. and Armstrong, M., 2007. Reward Management: A Handbook of Remumeration Strategy and Practice. 5^th ed. Kogan Page Publishers.

Deeprose, D., 2007. How to Recognize and Reward Employees: 150 Ways to Inspire Peak Performance. 2^nd ed. Amacom Div American Mgmt Assn.

Journals

Preatheepkanth, P., 2011. Reward System and Its Impact on Employee Motivation. Global Journal of Management and Business. 11(4).

Bamberger, A. P. and Levi, P., 2009. Team-Based Reward Allocation Structures. Journal of Managerial Psychology. 24(4). pp.300-