INTRODUCTION
The main aim of this report to provide the recommendations to money4U regarding the reward system they should implement in their regional offices which they are planning to open in n ext six month. This recommendation consists of the advice on pay structure, that how the available work should be divided between the employees and how this should be reflected in pay rates. And the recommendations also consists of rewarding skills and responsibility, incentive incentive pay, employee benefits, equal pay, profit sharing, equitable rewards. So our aim is to provide them with the solution which is fair, orderly, and flexible. According to the Michael Armstrong (1999) employee reward is about how people are rewarded in accordance with their value to an organisation. It is concerned concerned with both financial and non-financial rewards and embraces the philosophies, strategies, policies, plans and processes processes used by organisations to develop and maintain the reward system. An employee reward system s ystem consists of an organisations organisations integrated policies, processes and practices for rewarding its employees in accordance with their contribution, skills and competence and their market worth. Strategic reward is about making reward management work effectively for the organisation and its people. Reward management as defined by Armstrong and Murlis (2004) deals with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance accordance with their value to the organisation. It addresses issues affecting the design, implementation and maintenance of reward processes and practices that are geared to the improvement of the organisational, team and individual performance. The main areas of reward management for which the strategies are developed consists of processes for valuing jobs, grade and pay structures, pay adjustments, performance management, contingent and variable pay, employee benefits and recognition recognition methods. m ethods. Pay structure
According to Michael Armstrong (1999) Pay structure is defined as the different levels of pay for jobs or the group of jobs by reference to their relative internal internal value as established by job evaluation, evaluation, to external relativities relativities as established established by market rate surveys, and, where appropriate, to negotiated rates for the job. Grade and pay structures provide a framework within which an organizat organizations ions base pay management policies are implemented. Base pay management can involve the design and operation of formal grade and pay structure structuress that define d efine where jobs should be placed in a hierarchy, what people should be paid for them and the scope for pay progression. Base pay management enabl es pay practices to be monitored and controlled, facilitates the management of relativities, and helps to communicate the pay and sometimes the career opportunities available to employees.
There are 5 types of pay structures: y
Graded pay structures
y
Broad-band pay structures
y
Job
y
Spot rate structures
y
Pay spines
family structure
I recommend money4U to adopt broad- b and pay structure because according to Michael Armstrong (1999) broad- banded structures are more li kely to be introduced in flexible organisations which do not believe in extended hierarchies, are concerned about continuous development, and employ a high proportion of knowledge workers. Such organisations have often been through the business process re-engineering exercise which looks at the fundamental processes of the business from a cross- functional outlook and aims to break away from the restrictions of straight organisation boundaries. So this type of pay structure is suitable for Money4U for their regional offices because this gives the gap to expand it means this pay structure is flexible, orderly, and fair. Rewarding skill and responsibility
The main aim of the money4U is to recruit the staff with maximum level of expertise and skills. This is fact that every person doesnt have equal level of expertise and all required skills. So the directors of money4 U agreed with recruitment consultants on the team approach which means it is not necessary to have all the skills in every person but all the skills must be there in the team selected for each regional office. So there is different level of clients deal with different level of portfolio. For rewarding the employee according to the work performance and workload so the money 4U should adopt the Weighting method of job evaluation. Most formal job evaluation plans entail the measurement of job worth by ranking or rating jobs on a set of "compensable" factors (Henderson, 1989; Milkovich & Newman, 1987). Attributes of j ob worth measured by these factors typically fall into the categories of skill, responsibility, effort, and working conditions. (In fact, these 4 criteria are specified in the Equal Pay Act of 1963.) When combining the separate factor scores to form a composite, or when using the individual factors as variables in a prediction model, a decision must be made concerning the weighting of each factor. A Comparison of Factor Weighting Methods in Job Evaluation: Implications for Compensation Systems Journal
article by Kermit R. Davis Jr., William I. Sauser Jr.; Public Personnel Management, Vol. 22,
1993 http://www.questia.com/googleScholar.qst?docId=5000167118
Regional Managers
Factors
Level 1
Level 2
Level 3
Level 4
Level 5
Level 6
20
40
60
80
100
120
20
40
60
80
100
120
20
40
60
80
100
120
Freedom to act
20
40
60
80
100
120
Decision making
20
40
60
80
100
120
20
40
60
80
100
120
20
40
60
80
100
120
20
40
60
80
100
120
Knowledge and skills People management Communication and networking
Working environment Impact and influence Financial responsibility
Total -740
Financial responsibility According to (Armstrong 1995) the Responsibility of the regional manager of a financial service firm is: They need to explain the grade structure to the employees They need to take care about the employees financial and non- financial rewards. They need to decide about the pension plans for the retired employees. They also need to take into consideration weather all the employees at the same level are getting equally paid because differences in the salary of same level employees cause dissatisfaction. Knowledge and Skills
The aim of the partners to make regional offices full of each and every skills required for their jobs and can able to handle the orders and workload from the Head Quarter as well as the responsibilities of the local regional office they are looking for people having such a skills that they can make the good customer relations with the local clients. So for all this work it is very important that the regional manager should have great knowledge and skill in the financial sector and the have skills to create good business environment in his ass igned region. So we suggest the Money4U should appoint those people who are well experienced in this field or high level of expertise with a strong customer base in the particular region. This is important because it is stated in the case study that the regional managers have to attract their own corporate clients from their own l ocalities. It is also important that the regional managers has the requ ired level of qualification in the field of finance which can provide them with knowledge and skill needed to assume responsibility for the other employees and also allow them to achieve business targets. Decision making:
The regional managers will have a great responsibility of both the clients as well as the employees working under the manager so it is important to the managers to have a high level of expertise in decision making to perform these responsibilities. The managers in the regional offices have both the responsibility as well as the authority because they are the top bosses for the other staff in the regional office (Armstrong, 1999). So it is the duty of the managers to take care of problems of the other employees working under them to make good working conditions for them and to assign them their job related work fairly. The managers should take care of the problems faced by the employee in the work given to him/ her which will give the employee the positive organisational support. They should make sure the any decision they are taking is fair there is no partiality at all because sometime the difficult decision are taken very quickly so there might be some chances for bias. It is advised to Money4u that they should setup the committee that can take the decision on the problems of regional offices within the same place. People management:
The managers in regional offices needs have a good knowledge of people management skills because they are the boss for the regional office. So they have to handle and judge the strengths and weaknesses of their team and divide the work according to their performances. At the same time he/she has to satisfy the client as well because they are holding such a key position. So this is recommended to Money4U to recruit such kind of person as manager who has minimum level 5 expertise in people management. Freedom to act:
The responsibilities that managers carry on their shoulders are very high so they must be authorised to act freely without anyones interference. The managers able take cares of the work doing on time and the quality of work. He/she can take any decision on the behalf of the company which can give more satisfaction to the client.
Incentive pay
Incentive pay, also known as "pay for performance" is generally given for specific performance results rather than simply for time worked. While incentives are not the answer to all personnel challenges, they can do much to increase worker performance.
Productivity and high standards are important to MONEY4u. Recognition and encouragement are important to employees. Incentive pay is a way for you and your employees to achieve results. Incentive pay is the way to make people harder and more efficient. The incentive pay is different from the basic pay so this pay is always at risk so the employee will always do the hard work to achieve the given goal. It is basically the type of motivator and helps the employee to gear up. There not only the benefit of the employees there is the benefit for the employer as well. So it is advised to Money4U to give performance related pay to the employee below the advisers and set the target for them which is achievable but after making the good efforts. There is the benefit of the Money4U that if there staff is working effectively so they will earn more profit instead of keeping more staff if the company is earning good they should give their employees good. According to(Armstrong 1999), it is right, proper and equitable that those who are performing better, successfully apply met the higher level of skills, and his/ her contribution is more for the organisation should receive higher financial reward and those who are not performing good they should not be rewarded as stated by ACAS(1997). This is the fairest principle to follow. Contingent pay helps the employee to motivate to achieve higher level of performance with the contribution of the skills to help the organisation to improve their performance. It can communicate organisational performance requirements, priorities and values. For the Regional Manager and the A dvisors, the incentive pay could include a policy in profit sharing if they exceed their financial targets or if they bring in corporate clients with whom they develop strong financial relations. The profit sharing includes the bonus to be paid in the form of issuing the free shares this is known as the profit sharing scheme, there is no requirement for the share allocation directly related to the company profits. The share will be issued on the name of the employee and he/ she has to keep it for minimum for two years and after if they sell it they will get the current market price and that income is tax free as well. In this case there is the benefit for both the employee and the Money4U because there are more chances of the staff to stay longer and work effectively and efficiently (Armstrong 1999). This helps the clients of Money4U in the income and growth, portfolios, and ethical requirements being met, growth in client base, fee generation, risk management of portfolios, standards of client care and satisfaction.
