Unit rationale, description and aim
Remuneration systems, rewards and recognition schemes are essential elements in an HRM system. These systems are critical at a number of levels. At the strategic level, they can play a central role in contributing to the achievement of strategic objectives, the development of a desired culture that supports the strategy and furthers the values espoused by the organisation. It can also be used to attract and retain employees and other people doing the work of the organisation. At a managerial level, Remuneration systems and other rewards and recognition schemes can reinforce other HRM practices, such as performance evaluation, job analysis and work roles. There are a wide range of rewards and for a remuneration system to be effective it is essential to know what rewards employees value. In addition, they can minimise risk by ensuring remuneration systems comply with regulations and other external requirements. At an employee level, they are critical in fostering desired behaviour, retention and a desire to work for an organisation. There are a number of debates surrounding remuneration, rewards and the design of remuneration systems is not value neutral, but involves issues of equity and fairness.