Some HR managers assume that money is the most effective reward Essay

Some HR managers assume that money is the most effective reward strategy for increasing the motivation and productivity of all their employees. To what extent do you agree or disagree with this statement - Essay Example The companies must be offering their employees a positive reward experience and include them in the growth process of the company to be in a win-win situation. The reward structures may be monetary or may be intrinsic. The monetary rewards are one of the most important parts of the reward structure. Assigning values to each employee is one of the most significant jobs of the HR department. The company determines an employee’s value primarily by three ways- according to the skills, performance and their relative value in the job market. The companies have to fix the basic pay of labor and assign the suitable person for the profession. The base pay should compensate the individual with the ongoing value and incentives may be offered as rewards for their performance. (Zingheim & Schuster, March, 2000; Optimizing reward spend, n.d.). In addition to the monetary benefits, the employees look for other benefits from the company. The benefits may range from training & development of e mployees to offering good working conditions. These benefits have acquired importance in the modern business parlance with more and more individuals looking for other benefits than just the payment rewards. The reward structure of a company to a large extent depends upon the corporate goals of the companies. (Reward Strategy, n.d.) The paper presents a debate upon the type of reward strategies of the companies to motivate their employees and concludes upon the most effective one. In this modern era, money alone is not the motivating factor and non-monetary benefits are equally important. In fact, it can be said that non-monetary benefits is the most important strategy followed by companies to motivate their employees. Giving rewards to the employees has assumed great importance because companies all over the world have understood that the employees are the reason for their existence. The reward structure of the company is primarily dominated