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Types of Pay and reward in an organization: It's role in motivating employees

BY: JoJustin | Category: Social Issues | Post Date: 2010-02-24

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There are various kinds of employees who work in an organization. Some of these organizations are those that are able to pay the employees a lot of cash as well as provide them with various benefits. This is one of the methods of making the employee satisfied and motivated to work better. There are other kinds of organizations that are either non profit or they could be institutions that are not making a lot of profit. These organizations pay very less to their employees. All these factors play a role in the motivational level of the employees.

Other than the regular pay that is made to the employee on a weekly or a monthly basis, there are also various other rewards that are provided to the employees on a yearly or monthly basis. These benefits can also be one time benefits when the company has a sudden increase in the profits. All these benefits also help to motivate the employee to perform better.

The system of pay and benefits used by the firm to reward workers may vary from one organization to another, but they all have a reward system and this is as follows.


The regular payment that is paid on a monthly or a weekly basis is usually money. This helps the employees to use it for their regular daily expenses. This is also the most common method and regular method of payment that is made to all the employees. One should also understand that this is not the only method that can be used for the payment process.

Fringe benefits:

This is the next most common method of rewarding the employee for the hard work and the effort that has been put in by the employee. There are various fringe benefits that are present in the organizations and they are very useful to motivate the employees to work better. Some benefits include tax free bonus, children's educational aid and also housing that is free of cost.

Flexibility at work:

There are also some organizations that provide the employees with flexibility at the work place. The flexibility in the timing that is given to staff can be considered to be a benefit when compared to the full time effort of many other employees. The flexibility in the timing works in the principle that one needs to only work when there is an assignment and complete it within a specific period of time.


The paid holiday system is one of the most common methods of providing a payment to the employees that is beneficial to the employee and also to the employer. A person who may be stressed and mentally tired after working on stop for months will benefit from a break and will be able to work with increased vigor after the break. This is the principle behind the paid holiday. At the same time, the employee also as a break and is able to spend time with the family. The paid holidays mean that the employee is given leave to go on a holiday and the person is also given money for the travel.

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