Reward policy

Before employees join organisations, they ask themselves several questions such as how much they would be rewarded for the work and whether the job will meet their expectations. Furthermore, the organisation has to show, at least in principal that it is not ‘a too demanding sort’ and paying too little attention to rewarding accordingly. As many authors would agree (Armstrong 1995; Harris 2005; McKenna & Beach 2002; Torrington et al. 2005) reward policy provides guidelines for decisions and action in a number of areas including:

· Consideration for market rate pay.

· Internal and external equality.

· Merit pay.

· Incentive.

Therefore, the objectives for devising remuneration policies are many but at least they are meant to achieve the following:

· To attract sufficient suitable employees.

· To encourage retention of effective employees.

· To obtain optimal performance from employees.

· To encourage employees to improve their performance.

· To have sufficient flexibility to reward high performers and deal with poor performers.

To operate within the framework of current employment legislation and national economic policy where relevant:

· To operate at minimum cost.

· To ensure that jobs of equivalent value to the organisation are rewarded equally.

· To ensure that employees feel justifiably rewarded for the jobs they do.

These are broad policy objectives that are likely to be supported by most managers. Their conversion into practice will depend on the relative priorities accorded to them in the light of organisational circumstances. For example, a company struggling for survival will place greater emphasis on operating at minimum cost and paying the lowest possible wages, rather than the one planning for attraction and retention of employees who feel justifiably rewarded for their efforts. According to its policy objectives, management is likely to be concerned with three issues in the establishment of fair pay:

· Fair wages or salary – to ensure that what is paid is fair in comparison to payments received by other employees within the organisation, to ensure that pay is fair in comparison to other employers in similar organisations and in comparable jobs.

· Ensure that methods of payment encourage effective performance and commitment by individuals or work groups.

Reward management policies have to emanate from and be based on a number of factors as indicated in Figure 3.1. The arrows indicate an upward relationship between the boxes. The implication here is that any policy statement in the upper boxes has to be justified by information gathered in the preceding boxes. This implies that the reward policy is not static. It has to be reviewed from time to time as the organisation’s internal and external environment changes.

Health and safety

Health and safety policy is a general statement that declares the management’s intention, means and guidelines for the protection of the organisation’s employees from hazards at work. Health and safety policy should emphasise the following:

· The importance of safety for the employee and the public,

· Safety as precedence over expediency,

· The role of managers, team leaders and employees in the development and implementation of health and safety procedures, and

· Compliance with health and safety legislation.

There are several components of a health and safety policy that cover different aspects of health and safety for workers. The key components are as follows:

· The role of each part in the management of health and safety.

· Procedures for reporting accidents, illness and safety hazards.

· The precautions to be taken when handling or processing dangerous substances.

· Monitoring & maintaining high standards of hygiene.

· Training, coaching, and mentoring programmes on health and safety.

· Rules on working habits.

· Safety inspections, provision and use of personal protective equipment.

There are different types of health hazards in the work place. These include:

· Physical – heat, radiation, noise, and vibration.

· Chemical – Dust, poisonous gases, and toxic chemicals.

· Biological – Insects, fungi, and bacteria.

· Stress – Work, physical and chemical environment.

Each country has specific laws and regulations that regulate health and safety in the workplace. It is important that managers and employees are aware of them and ensure they are observed.

Equal opportunity

Equal opportunity means that members of a protected group or class must be employed without being subjected to various forms of unfair discrimination. The discrimination could be based on race, gender, age, or disability. Since the 1960s, governments in Europe and America have been passing various policies and laws against all forms of discriminatory employment practices.

Equal opportunity policies may affect all components of the employment process in an organisation, including recruitment, selection, training, promotion, transfer, pay and others like leave and housing etc. The rationale for equal opportunity revolves around the following:

· Maximising employees’ potential will improve performance.

· Compliance with the constitution and other legislation.

· The need to have a proportional labour force that represents all of the community.

Table 3.2 Equal opportunities in human resource activities