The development of reward management practices helps employers to determine
what they are willing to pay to their employees. Nonetheless, employers will be
able to do that only after having determined what they consider as most valuable
and important for their organisation and what type of contribution their
employees should yield for the attainment of organisational success. By means
of reward management organizations should basically favour and encourage those
behaviours and actions which expect would help them to effectively and
consistently achieve their aims and objectives or, more specifically, their strategy.
The measurement and assessment of the factors identified can hence be expressed by ratings, which by means of a formula enable employers to calculate the amount that has to be paid to the employees. Employers could also decide to determine the payments on the basis of a broader assessment method, rather than by mathematics formulae, but in this case the method could be prone to be deemed subject to bias and subjective, rather than objective, appreciation.
Organisations whose culture, values and shared beliefs are inspired by productivity, performance, contribution and the recognition of the actual achievement of these, will find this method particularly useful to inspire integrity and effectively and consistently foster and consolidate their values and beliefs.