Rewards and Recognition in PHR certification

It is crucial in your PHR certification that you know how to properly administer rewards and recognition to your employees.  Reward management entails that you design and implement reward strategies to the employees to promote retention and recognition for productive employees.  It is a key factor in retaining the best employees in your company.

PHR certification will not only test your knowledge in this topic, it will also test if you truly understand the idea of rewards management.  It is known that rewards indicate pay or bonuses, but what some HR practitioners tend to forget is that it also sends a message of what the company is all about.  Employees will boast about their companies reward policies if they are well compensated for a job well done.  However, if they feel that they have been shorthanded by the company after promises of great rewards for performance, it will create an image of distrust and demotivate employees.

There are two contemporary reward theories that categorize reward strategies.  Strategic pay indicates that the current pay should be growing and changing as the world changes around the individual.  It should naturally be aligned with the organizations strategies and goals.  It must also be aligned with the company’s culture and its objectives.  New Pay indicates that rewards should focus on results.  It says that the company should reward individuals who exhibit the kind of behavior that improve the company’s goals.  It also indicates that employees should have a significant voice whether the current rewards package is appropriate for them.

It is also important that you link the rewards to the company goals.  Understanding of a stringent rewards policy will help the company further their goals and make the employees aware of the factors affecting the company objectives.  Your PHR certification should be able to provide you with the right knowledge and skills to do this.