Introduction: for this blog, I have to consider my
own organisation or one with which I am familiar with and state how they reward
employees, if it differs for different groups how and why, and how is
‘fairness’ or ‘equity’ ensured and also if I think chief executives should
still receive large bonuses even if they have led has underperformed and list
the arguments for and against this.
Reward system: tends to consist of financial rewards
and employee benefits. Reward is an incentive given to an employee for their
work hard and commitment to the job, such as bonuses. Armstrong, M & Stephens, T. (2005) stated that "reward management consisted of a set of beliefs and principles that are consistent including the values of the organisation including the beliefs in the need to achieving fairness, equity, consisitency and transparency in operating reward system", this makes up the reward system including the following components such as the policies, practises, processes, procedures and structures. The reward system is made up of both rewards including bonuses, incentives etc as well as the non financial rewards for example recognition, career development opportunties etc.
B&Q Rewards:
B&Q motivates its employee’s through its rewards and benefit
packages, as explained below are their different types of rewards and packages
they offer employees. I work for B&Q and they reward employees in many
ways, for example bonuses are rewarded twice a year when the company achieves
its targets. Another way is that if you work part time and you work more than
35 hours during the week the company pays you double, another one is if you
work bank holidays you also get double pay this motivates employees to go and
work on bank holidays.
Below are some forms of rewards and benefits they offer employees:
- · Employee benefits: B&Q rewards its employees generously with a competitive rewards package which includes; a store discount card offering 20% off all products in-store or online also in the employees benefits book there are many offers and discounts exclusively for employees such as 30% off selected gym memberships, car insurance, holidays, attractions etc, this can be obtained once employee has been working for the company for 3 months.
- · Employee personal benefits: can enjoy various discounts on high street retailers, travel, leisure, and other great places.
- · Bonus schemes: B&Q bonus scheme which are designed to drive performance and to reward accurately, bonus schemes are reviewed annually and remain competitive in the marketplace.
- Enhanced annual leave: employees can benefit from 6.6.weeks annual leave.
- Kingfisher pension scheme: competitive pension scheme that employees could join, after 3 months of working for the company.
- Kingfisher save as you earn (SAYE): provides employees with an opportunity to buy discounted Kingfisher PLC shares whilst benefits from tax free savings.
- Recognition schemes: B&Q recognises employees who really make a difference and celebrates outstanding contribution at annual recognition awards events.
- Flexible working: At B&Q,
all permanent employees irrespective of service or caring responsibilities have
the right to request flexible working, are given the
opportunity to achieve more balance between work and other commitments. - Family leave: Eligible employees benefit from enhanced Maternity, Paternity and Adoption Policies offering over and above the statutory requirements.
- Childcare vouchers: B&Q support working parents with childcare costs through provision of the Government childcare voucher scheme - this is non taxable and exempt from National Insurance allowing significant savings to be made.
- HSA membership: HSA is one of the largest health
plan providers in the UK. B&Q employees
are offered a corporate discount on their membership. - BUPA membership: B&Q employees can take advantage of discounted membership rates.
- Payroll giving: Payroll giving is the simplest tax effective way for employees to give to their favourite charities.
- Talent scout: Refer talented people with a passion for retail and service delivery to lead the business forward - if the individual referred is successful, employee will receive a bonus payment.
As you can see B&Q reward system is quite
generous, they have a generous rewards and benefits package which employees can
enjoy this motivates employees to work hard and achieve the best if B&Q is
profitable everyone gets a bonus within the company. Having worked for the
company I believe that they treat all the workers equally, as all employees
receive the same rewards and benefits. B&Q also offer employees non
financial rewards as mentioned above such as recognition and praise for their
hard work and dedicating, they have a recognition scheme annually. Also
employees that perform well in their job are offered progression for e.g. to
work in another department, or move to another are within the organisation.
B&Q also offers all employees flexible working At B&Q, “ all permanent employees
irrespective of service or caring responsibilities have the right to request
flexible working, giving an opportunity to achieve more balance between work
and other commitments”, and for employees who have children B&Q offers
childcare vouchers supporting working
parents with childcare costs through provision of the Government childcare
voucher scheme - this is non taxable and exempt from National Insurance
allowing significant savings to be made”. The rewards do not differ for different groups of
people working for B&Q, and all rewards and benefits are fair and equity
ensured.
Below are printscreen taken from B&Q webite, showing thier beneifts and rewards they offer employees.
Should chief executives receive large
bonuses if organisation underperforms?
Chief executives have the highest position within a company or organisation, it is their core responsibility for carrying out the policies of the board of directors on a day-to-day basis, and they make the decisions and have the power of the company.
I don’t think that chief executives should get large bonuses if the organisation underperforms as they are the ones that are responsible for making all the decisions for the company, and therefore any wrong decisions could lead to the company making big losses, and as a result if they are paid a large bonus the company is not in a good financial position. The arguments for the chief executive to get large bonuses is that it would motivate them to work harder and get results for the company, also as the role is tough and stressful as the company relies on the chief executives to make the right decisions they should be rewarded with large bonuses for their hard work and this would therefore keep them wanted to stay with the company. The arguments against chief executives getting large bonuses if company underperforms are that it is unfair that the chief executives still receive large bonuses and company suffers. Having read an article from the BBC by RBS boss Stephen Hester rejects £1m bonus”, he was the chief executive for Royal Bank of Scotland and he turned down his bonus worth nearly £1m, as it was labour decision to put it to vote and as a result Hester did not take the bonus for this reason, as the company is underperforming and it is seen as unfair if the chief executive still received the large bonus, particularly when employees in the company have their jobs at risk for e.g. Royal Bank of Scotland, 3,500 jobs will be cut.
Conclusion: overall rewards plays an important role
for any organisation to ensure the employees are motivated in the workplace, organisations
have their own rewards and benefits packages for employees such as bonuses, flexible
working etc, there are also the non financial rewards such as recognition and
praise and these tend to make employees feel like they are valued for their hard
work and commitments and many organisations such as B&Q have recognition schemes
annually, also for chief executives there are arguments for and against
receiving large bonuses if the company is underperforming in my opinion I feel
that as the decisions are being made the by chief executive and if they make
the wrong decision the company makes big losses and as a result I feel that the
chief executive should not receive the large bonuses as the company is underperforming,
however some may feel this is unfair and chief executives should receive large bonuses
as they take on the role ensuring the business is operating and doing well.
References:
[1] B&Q Benefits and Rewards [Online]
Available From: http://www.diy.com/diy/jsp/corporate/content/careers/our_roles/benefits.jsp [Accessed 12April 2012]
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