5HR03 ASSIGNMENT EXAMPLE

Tasks

Assessment Questions

AC 1.1 Explain the principles of reward and its importance to organisational culture and performance management.

Principles of Reward Systems

Organizations need effective reward structures to attract, retain, and motivate employees. Key principles include:

Fairness

Employees should feel that their pay and benefits fairly reflect their responsibilities and achievements. Rewards must align with market standards and internal job structures (Caroline, 2024). At Eco-Insulate UK, the absence of incentives may lead to dissatisfaction, lowering morale and motivation.

Equity

Compensation should consider skills, experience, and performance. Employees in similar roles should receive equal pay (Novakovic, 2025). Offering pensions only to senior employees can create division and dissatisfaction among other staff.

Transparency

Employees should clearly understand salary structures, incentives, and benefits. A lack of transparency can lead to mistrust and disengagement (SCIO, 2024). At Eco-Insulate UK, unclear reward policies make it difficult for employees to connect their performance with potential rewards, risking talent loss.

Alignment with Organisational Culture

Rewards shape company culture by influencing employee behavior and attitudes. A fair and transparent system fosters trust and engagement. At Eco-Insulate UK, the lack of incentives makes employees feel undervalued. Recognition programs and profit-sharing could improve motivation and commitment (CIPD, 2024).

Link to Performance Management

Well-designed incentives encourage desired work behaviors. Connecting rewards to performance boosts productivity and motivation (CIPD, 2024). Implementing skill-based pay and performance bonuses at Eco-Insulate UK could improve efficiency and reduce staff turnover (CIPD, 2024).

AC 1.2 Assess the contribution of extrinsic and intrinsic rewards to improving employee contribution and sustained organisational performance.

Employee motivation is driven by both external (extrinsic) and internal (intrinsic) factors, both of which are essential for sustaining organisational performance and encouraging individual contributions. Extrinsic rewards are tangible benefits that companies provide, such as salaries, bonuses, benefits, and promotions (Rice, 2021). These rewards help employees remain productive and achieve organisational goals. Performance-based bonuses, for example, can enhance efficiency by directly motivating employees to meet their targets (AIHR, 2024). At Eco-Insulate UK, implementing an incentive program could improve productivity and reduce staff turnover. Competitive compensation packages would also help attract and retain skilled employees, while regular bonuses and improved pensions could increase job satisfaction and loyalty.

However, extrinsic rewards also have drawbacks. Employees who focus solely on financial incentives may neglect career growth and company objectives (Kowalska, 2023). Over-reliance on monetary rewards can diminish internal motivation, leading to reduced commitment once reward periods end. Furthermore, if employees perceive that rewards are distributed unfairly, this may create dissatisfaction and workplace conflicts. At Eco-Insulate UK, introducing extrinsic rewards without ensuring transparency could exacerbate existing cultural challenges.

Intrinsic rewards, on the other hand, are intangible benefits that companies provide to employees for exceptional performance. These include job autonomy, career development opportunities, and recognition from colleagues (Anees, 2023). Employees derive motivation from the satisfaction and meaning they find in their work. When individuals feel that their work is valued, they tend to be more engaged and committed (AIHR, 2024). At Eco-Insulate UK, implementing recognition programs and offering career development opportunities could foster a more positive work environment. Non-financial rewards, such as mentoring and professional growth initiatives, can also enhance long-term motivation and improve employee retention.

Despite their benefits, intrinsic rewards can be challenging to implement effectively. Since motivation varies from person to person, it can be difficult to design a system that works for all employees (Empuls, 2025). Employees at Eco-Insulate UK may struggle to see the impact of non-financial rewards, particularly if they prioritize financial incentives. If intrinsic rewards are relied upon exclusively, some skilled employees may feel undervalued, which could increase turnover rates (Rahul, 2024).

For an organisation to maintain a highly motivated workforce, it is crucial to balance both extrinsic and intrinsic rewards. At Eco-Insulate UK, combining financial compensation with career development and recognition programs would create a more engaged and productive workforce. Recognition, meaningful work, and professional growth contribute to higher employee commitment and creativity (Ibitomi et al., 2022). When employees feel empowered and have opportunities to develop their skills, job satisfaction increases, leading to higher retention rates and a stronger organisational culture (Manzoor, Wei & Asif, 2021).

Extrinsic rewards, such as salary increments, bonuses, and wellness programs, also play a significant role in motivating employees. Competitive pay ensures staff retention, while performance-based rewards encourage employees to work towards company goals (Active, 2025). Recognition programs, such as Employee of the Month awards, can boost morale and foster a positive workplace culture. However, if a company depends too heavily on financial incentives, employees may lose intrinsic motivation, which can negatively impact long-term engagement (Empuls, 2025).

Ultimately, a well-structured reward system that integrates both extrinsic and intrinsic incentives can drive employee performance and enhance organisational success. By ensuring transparency and fairness in its reward structures, Eco-Insulate UK can create a work environment where employees feel valued, motivated, and committed to achieving company objectives.

AC 2.1 Explain the differences between types of grade and pay structures.

Organizations use different grading systems and pay scales to determine employee compensation. These structures guide career progression, influence motivation, and promote fairness in the workplace. Pay structures can be either formal or informal, with formal systems being the most common. Two widely used formal pay structures are the multi-graded pay structure and the broad-banded pay structure, each with its own advantages and challenges.

Multi-Graded Pay Structure

A multi-graded pay structure consists of multiple salary grades, where pay bands are clearly defined based on job complexity, responsibilities, and employee skills. Progression through these grades typically occurs through promotions, long service, or outstanding job performance (Morris, 2025).

One of the key advantages of this structure is that it provides employees with a clear career development plan, enabling them to advance in both position and salary. This structured approach encourages professional growth and increases workplace commitment (Morris, 2025). Additionally, well-defined salary ranges ensure fairness in pay distribution across the organization (Morris, 2025).

However, challenges arise when employees reach the highest grade level, as further advancement opportunities may be limited. This lack of progression can lead to demotivation (Schurk, 2023). Another drawback is the administrative burden, as managing multiple grades requires continuous monitoring and comparison with external market trends, which can be time-consuming for HR teams.

Broad-Banded Pay Structure

In a broad-banded system, employees are placed within fewer but wider salary bands, which consolidate multiple smaller pay grades. This structure offers more flexibility, allowing employees to move within broader pay ranges rather than relying on rigid promotion steps (Emma & Emma, 2023). It is particularly beneficial for dynamic organizations that require adaptable and fluid workforce structures.

One of the advantages of broad-banding is that it enables companies to adjust salaries based on performance, market trends, and skill development. Employees can also progress within a band without needing formal promotions, supporting continuous learning and professional growth (Emma & Emma, 2023).

Despite these benefits, broad-banding can create challenges if not managed effectively. One major risk is pay inconsistency, where employees performing similar roles may receive significantly different salaries, leading to perceptions of unfairness (The Human Capital Hub, 2023). Additionally, employees may find it difficult to navigate their career paths since movement within a band does not always come with new job titles or clear achievement milestones (The Human Capital Hub, 2023).

In conclusion, both multi-graded and broad-banded pay structures have their strengths and weaknesses. While multi-graded structures provide well-defined career progression and pay fairness, they can limit advancement opportunities and require extensive administrative oversight. On the other hand, broad-banded structures offer flexibility and skill-based growth but pose challenges in ensuring fair compensation and clear career pathways. Organizations must carefully choose and manage their pay structures to maintain employee motivation and operational efficiency.

AC 2.2 Explain how contingent rewards can impact individual, team and organisational performance.

Contingent rewards link employee compensation directly to performance, encouraging motivation and aligning individual and team goals with organizational objectives. Eco-Insulate UK faces challenges such as limited reward schemes and high employee turnover. Implementing contingent reward systems could foster a positive work environment and enhance overall performance. The following sections explore how performance-based rewards impact different organizational levels.

Performance-Related Pay (PRP)

Performance-Related Pay (PRP) is a compensation system where employees receive financial bonuses or salary increases based on independent performance evaluations. This system ties monetary incentives to organizational metrics such as sales targets, production goals, and other achievement indicators (Cotton, 2022).

Impact on Individual Performance

PRP serves as a strong motivator by providing direct financial incentives, which encourage employees to exceed performance expectations (Cotton, 2022). At Eco-Insulate UK, this could result in higher productivity and increased workplace engagement. Additionally, when employees see a direct link between their efforts and salary growth, they are more likely to enhance their skills and strive toward professional development (Cotton, 2022).

Impact on Team Performance

By linking pay to collective performance metrics, PRP encourages teamwork and collaboration (Bonifacio, 2024). Employees at Eco-Insulate UK may work more cohesively to achieve shared production goals, fostering team unity. However, if not managed properly, PRP can also create unhealthy competition, leading to conflicts among team members who may perceive the reward distribution as unfair (Bonifacio, 2024). Employees who feel that others are receiving undeserved compensation may become disengaged, reducing overall morale.

Impact on Organizational Performance

On a larger scale, PRP helps organizations align employee objectives with corporate goals, improving operational efficiency and overall output. If implemented at Eco-Insulate UK, PRP could drive productivity, enhance organizational performance, and reduce employee turnover (Aithor, 2024). A well-structured PRP system would also position the company as an attractive employer for workers seeking direct financial rewards based on their contributions.

Skill-Based Pay (SBP)

Skill-Based Pay (SBP) compensates employees based on the skills and competencies they acquire, rather than their job title alone (Serrador, 2025). At Eco-Insulate UK, employees would receive salary increases upon mastering new skills relevant to their roles.

Impact on Individual Performance

SBP encourages employees to develop new skills, leading to improved job performance and greater productivity (Rataj, 2023). At Eco-Insulate UK, this approach would empower employees to take on more complex tasks and contribute more effectively to the company. Moreover, recognizing and rewarding skill development would increase job satisfaction, reducing turnover and fostering long-term commitment (Rataj, 2023).

Impact on Team Performance

When employees enhance their skills, teams as a whole benefit from increased collective knowledge and capabilities (Joseph, 2025). At Eco-Insulate UK, SBP would encourage a culture of continuous learning, where employees share their expertise with colleagues, leading to a more skilled and adaptable workforce. This approach would be particularly beneficial in maintaining quality production and improving operational efficiency.

Impact on Organizational Performance

By investing in employee skill development, organizations gain a more competent and innovative workforce. For Eco-Insulate UK, SBP could drive efficiency, foster innovation, and maintain the company’s competitive edge in the eco-friendly insulation market (Serrador, 2025). Additionally, continuous employee growth supports long-term business sustainability, ensuring that the workforce remains capable of adapting to evolving industry demands.

Conclusion

Both Performance-Related Pay (PRP) and Skill-Based Pay (SBP) significantly impact individual, team, and organizational performance. PRP provides direct financial motivation, linking rewards to measurable achievements, while SBP encourages continuous learning and skills development, benefiting both employees and teams. To improve employee morale and reduce turnover, Eco-Insulate UK should adopt these contingent reward strategies carefully. However, proper implementation is crucial to prevent potential downsides such as unhealthy competition and team disunity. By balancing reward distribution and maintaining fairness, Eco-Insulate UK can enhance productivity and achieve long-term success.

AC 2.3 Explain the merits of different types of benefits offered by organisations.

A company’s success relies on a well-structured employee recognition system that boosts morale, creates a positive work environment, and fosters teamwork. Employers can provide recognition formally or informally through financial incentives, awards, or non-monetary rewards. There are two common types of employee recognition systems, each offering unique benefits.

Public Recognition

Public recognition occurs when an organization acknowledges employees’ achievements in front of their colleagues (Kinne, 2022). This can be done during company meetings, award ceremonies, newsletters, or social media platforms (Kinne, 2022).

Benefits of Public Recognition

Publicly acknowledging employees’ hard work enhances morale and motivation. Being recognized in front of others boosts self-confidence and encourages employees to aim for higher goals (Tsang, 2020). Additionally, public recognition helps build a strong organizational culture by setting positive examples for others to follow. A workplace that celebrates achievements fosters engagement and teamwork (Tsang, 2020).

Example: Eco-Insulate UK

Eco-Insulate UK currently faces a challenging work environment with high employee turnover. Introducing an “Employee of the Month” program could improve morale. Highlighting exceptional performance in newsletters or company meetings could boost motivation and reduce staff departures (Empuls, 2025).

Importance, Risks, and Challenges

Public recognition encourages employees to stay committed to organizational goals and nurtures a culture of gratitude and excellence (Wickham, 2023). However, some employees may feel uncomfortable or embarrassed by public praise, reducing its effectiveness. Furthermore, if recognition is perceived as unfair, it may cause resentment among employees (Assembly, 2024).

Creating a fair and objective recognition system can be challenging. Overuse of public recognition may also diminish its impact over time, making it less effective (Assembly, 2024).

Cash and Non-Cash Awards

Financial recognition includes bonuses and monetary benefits, while non-financial rewards may involve gifts, vouchers, or event tickets. Employers use both methods to reward outstanding performance (Cardrain, 2023).

Benefits of Cash and Non-Cash Awards

Cash bonuses provide direct financial benefits, motivating employees to meet their objectives. Similarly, non-monetary rewards, such as gift vouchers or travel experiences, can also be effective (Shah, 2022). Personalizing rewards to match employees’ preferences makes them more meaningful. Employees feel valued when they receive incentives that align with their interests (Shah, 2022).

Example: Eco-Insulate UK

Eco-Insulate UK currently lacks an incentive system. Introducing performance-based bonuses and personalized gift vouchers could help retain top-performing employees. Factory workers who deliver exceptional results could receive cash bonuses or shopping vouchers, maintaining motivation and reducing turnover.

Importance, Risks, and Challenges

Offering both monetary and non-monetary rewards ensures employees with different preferences remain motivated and engaged. A combination of short-term cash incentives and long-term rewards like gift cards can sustain motivation over time (Inproma, 2019).

However, relying too much on scheduled financial incentives may cause employees to focus only on monetary rewards, reducing their intrinsic motivation. Additionally, a lack of transparency in reward distribution can lead to dissatisfaction (Active, 2025).

Managing costs while offering meaningful rewards can be difficult. It is also challenging to personalize rewards to suit all employees’ preferences (QIC, 2025).

AC 2.4 Explain the merits of different types of recognition schemes offered by organisations.

The reward environment in a company is shaped by internal and external business factors that influence how compensation systems are designed and implemented. Internal factors include company culture and financial performance, while external factors consist of industry trends and regional differences. This analysis explores Eco-Insulate UK’s reward environment by examining key internal and external influences.

Internal Factors

Organizational Culture

Eco-Insulate UK’s Managing Director has acknowledged that a poor company culture is causing high employee turnover. A weak organizational culture leads to low team engagement, decreased productivity, and difficulties in attracting and retaining talent (CIPD, 2024).

Impact on the Reward Environment

A lack of motivation and appreciation leaves employees feeling undervalued, which lowers efficiency (Dewar, 2025). At Eco-Insulate UK, the absence of a reward system contributes to dissatisfaction and instability in the workforce. Implementing a structured reward program—including bonuses and employee recognition initiatives—would improve satisfaction and strengthen company culture (Dewar, 2025).

Financial Constraints

A company’s financial health determines its ability to offer competitive compensation (Wilson, 2023). Eco-Insulate UK operates on tight profit margins, making it difficult to introduce an extensive reward scheme.

Impact on the Reward Environment

Limited financial resources prevent salary increases and performance-based bonuses, making it harder to retain skilled employees (Wilson, 2023). To address this challenge, Eco-Insulate UK could focus on non-financial rewards, such as recognition programs and career development opportunities, to enhance employee motivation without significantly increasing costs.

AC 3.1 Assess the business context of the reward environment.

External Factors Affecting the Reward Environment

Industry Trends

The UK manufacturing sector is experiencing a shortage of skilled workers, leading to increased competition for talent. Companies are offering better compensation packages to attract and retain skilled employees (Lauren, 2024).

Impact on the Reward Environment

If Eco-Insulate UK does not offer competitive salaries and benefits, employees may leave for companies that provide better pay and incentives (Lauren, 2024). To attract and retain talent, the company could introduce competitive rewards such as training programs and skill-based bonuses, which would also enhance its reputation among customers (Engage Employee, 2025).

Regional Pay Differences

Wages and benefits vary by region due to differences in labor market conditions and living costs (CIPD, 2024). If Eco-Insulate UK operates in an area with a high cost of living but offers lower salaries, employees may seek better-paying opportunities elsewhere.

Impact on the Reward Environment

To stay competitive, the company could adjust salaries based on location or offer non-monetary benefits such as travel allowances (CIPD, 2024). However, if competitors in other regions provide better compensation packages, employees may still leave, leading to higher turnover rates (CIPD, 2024).

AC 3.2 Evaluate the most appropriate ways in which benchmarking data can be gathered and measured to develop insight. 

Benchmarking reward structures is an important process that helps companies compare their compensation systems with industry standards (Access People HR, 2024). By using benchmarking data, Eco-Insulate UK can understand competitive pay standards and improve employee retention through better reward programs. There are two main methods for gathering benchmarking data to assess strengths and weaknesses.

Industry Salary and Reward Surveys

These surveys collect information about salaries and working conditions from industry groups, HR consultancies, and government agencies (SteveC, 2023).

Advantages and Disadvantages

Industry surveys provide detailed insights into specific sectors, allowing Eco-Insulate UK to compare its pay policies with other companies in the eco-friendly manufacturing industry. They also offer reliable and up-to-date data from credible sources (Whitfield, 2024). However, high-quality surveys often require costly subscriptions, which may be a challenge for Eco-Insulate UK due to financial constraints. Additionally, the data is often generalized and may not fully address the company’s unique needs (Whitfield, 2024).

Internal Payroll Data and Exit Interviews

By analyzing payroll records and conducting exit interviews, Eco-Insulate UK can identify trends in employee departures. Payroll records track salary patterns, while exit interviews reveal issues in the reward system (Henderson Loggie, 2023).

Advantages and Disadvantages

Using internal payroll data provides specific insights, allowing the company to make targeted improvements to its reward system. Exit interviews help identify employee concerns, offering direct feedback on areas that need improvement (Henderson Loggie, 2023). However, internal data lacks external benchmarks, making it difficult to compare salaries with competitors (Raymond, 2024). Additionally, exit interviews may be influenced by emotions, leading to subjective feedback that does not always reflect broader market trends (Raymond, 2024).

Conclusion and Recommendation

Both industry surveys and internal payroll data have strengths and weaknesses. Industry surveys offer useful market benchmarks but can be costly and generic, while internal payroll data provides company-specific insights but lacks external comparisons.

To create a strong compensation strategy, Eco-Insulate UK should adopt a blended approach, combining salary survey data with internal payroll analysis and exit interview findings. This approach will help the company develop competitive reward programs that enhance employee satisfaction and retention.

AC 3.3 Explain approaches to job evaluation.

Job evaluation is a structured process that helps organizations determine the value of different positions. It ensures fair compensation by assessing job roles, required skills, responsibilities, and work conditions. There are two main methods of job evaluation: analytical and non-analytical approaches.

Point Factor Method (Analytical Approach)

This method systematically evaluates job roles based on measurable factors like skills, effort, responsibilities, and work conditions (Maini, 2023). Each factor is assigned points, which are then totaled to rank job positions.

How It Works
Key job elements such as problem-solving and physical effort are identified and given different point values based on their importance (AIHR, 2024). The total points determine the relative value of a job compared to others in the organization.

Advantages and Disadvantages
This approach provides an objective and transparent pay structure, reducing the risk of equal pay disputes (Plum, 2024). However, it requires significant resources and expertise, making it difficult for smaller businesses like Eco-Insulate UK to implement. Additionally, its rigid structure may not easily accommodate changes in job responsibilities.

Job Ranking Method (Non-Analytical Approach)

This simpler method ranks jobs based on their perceived importance without assigning numerical values (HR List, 2024).

How It Works
A panel of managers evaluates and ranks jobs from the most to the least valuable. Higher-ranking positions receive better pay (HR List, 2024).

Advantages and Disadvantages
The job ranking method is easy to implement and does not require complex job analysis (Wellhub Editorial Team, 2025). It also allows quick adjustments to pay structures. However, its subjectivity makes it prone to personal biases, leading to inconsistencies (Wellhub Editorial Team, 2025). Additionally, without a clear quantitative basis, justifying pay differences during disputes becomes difficult (Thompson, 2019).

Conclusion and Recommendation

Each method has strengths and weaknesses. The point factor method provides accuracy and legal protection but may be too complex for a small business like Eco-Insulate UK. The job ranking method is easier to implement but lacks precision and fairness.

Eco-Insulate UK should initially adopt the job ranking method for its simplicity and gradually incorporate elements of the point factor approach. This will create a fair and structured compensation system, helping to reduce turnover and improve workplace culture.

AC 3.4 Explain the legislative requirements that impact reward practice.

Organizations must follow strict legal guidelines when implementing reward systems to ensure fairness and equal opportunities in the workplace. For Eco-Insulate UK, compliance with these laws is crucial to addressing high employee turnover and workplace culture issues. Two key laws regulate reward practices in the UK.

Equality Act 2010

The Equality Act 2010 consolidates various anti-discrimination laws, ensuring fair treatment of employees. It mandates equal pay for equal work, meaning men and women performing the same roles with similar skill requirements must receive the same pay. The law also protects against discrimination based on race, disability, and other characteristics (ACAS, 2024).

Impact on Reward Practices:

• Equal Pay for Equal Work: Eco-Insulate UK must ensure employees in similar roles with equivalent experience receive equal pay, regardless of gender or other protected characteristics.
• Fair Job Evaluation: The company should implement a transparent and non-discriminatory job evaluation system to prevent pay disparities.

Failing to comply with the Equality Act can result in legal action, financial penalties, and reputational damage. Establishing clear and fair pay structures will improve employee satisfaction and reduce turnover (ACAS, 2024).

National Minimum Wage Act 1998

This law sets the legal minimum wage for workers in the UK, with pay levels based on age and apprenticeship status (ACAS, 2024).

Impact on Reward Practices:

• Compliance with Minimum Wage Standards: Eco-Insulate UK must ensure all employees, from skilled to unskilled, receive at least the minimum wage.
• Transparency in Pay Structures: Following wage regulations fosters trust and strengthens relationships between the company and its workforce (LexisNexis, 2025).

Non-compliance can result in financial penalties and legal action, damaging the company’s reputation and making it harder to attract and retain skilled employees (LexisNexis, 2025).

Conclusion

Legislation such as the Equality Act 2010 and the National Minimum Wage Act 1998 form the foundation of fair reward practices. By complying with these laws, Eco-Insulate UK can create a transparent and equitable workplace, improving employee retention and job satisfaction while addressing its cultural and turnover challenges.

References

ACAS (2024). Discrimination and the Law. [online] ACAS. Available at: https://www.acas.org.uk/discrimination-and-the-law [Accessed 9 Feb. 2025].

Acas (2024). National Minimum Wage Entitlement | Acas. [online] Acas.org.uk. Available at: https://www.acas.org.uk/national-minimum-wage-entitlement [Accessed 9 Feb. 2025].

Access People HR (2024). HR Benchmarking: a guide to getting started. [online] Peoplehr.com. Available at: https://www.peoplehr.com/en-gb/resources/blog/hr-benchmarking/ [Accessed 9 Feb. 2025].

Active (2024). The Great Debate: Cash vs Non-Cash Incentives – Active Consultancy. [online] Active Consultancy. Available at: https://activeconsultancy.com/non-cash-vs-cash-incentive/ [Accessed 25 Feb. 2025].

Active (2025). How Do Extrinsic Rewards Improve Employee Contribution? 6 Key Points – Active Consultancy. [online] Active Consultancy. Available at: https://activeconsultancy.com/how-extrinsic-rewards-improve-employee-contribution/ [Accessed 25 Feb. 2025].

AIHR (2024a). Extrinsic Rewards. [online] AIHR. Available at: https://www.aihr.com/hr-glossary/extrinsic-rewards/ [Accessed 9 Feb. 2025].

AIHR (2024b). Intrinsic Rewards. [online] AIHR. Available at: https://www.aihr.com/hr-glossary/intrinsic-rewards/ [Accessed 9 Feb. 2025].

AIHR (2024c). Point Factor Method. [online] AIHR. Available at: https://www.aihr.com/hr-glossary/point-factor-method/ [Accessed 9 Feb. 2025].

Aithor (2024). Advantages and Disadvantages of Performance-Related Pay. [online] aithor.com. Available at: https://aithor.com/essay-examples/advantages-and-disadvantages-of-performance-related [Accessed 9 Feb. 2025].

Anees, M. (2023). Intrinsic Motivation Advantages and Disadvantages for Organizations. [online] BRAVO! Employee Experience Management. Available at: https://getbravo.io/intrinsic-motivation-advantages-and-disadvantages/ [Accessed 9 Feb. 2025].

Assembly (2024). Assembly | Your Digital HQ. [online] Joinassembly.com. Available at: https://www.joinassembly.com/faq/what-are-the-cons-of-employee-recognition [Accessed 25 Feb. 2025].

Bonifacio, R. (2024). Performance related pay. [online] www.shiftbase.com. Available at: https://www.shiftbase.com/glossary/performance-related-pay [Accessed 9 Feb. 2025].

Cardrain, D. (2023). Cash vs. Non-Cash Rewards. [online] Shrm.org. Available at: https://www.shrm.org/mena/topics-tools/news/hr-magazine/cash-vs-non-cash-rewards [Accessed 9 Feb. 2025].

Caroline (2024). Treat them fair to keep them there? How to reward your employees fairly. [online] Zensai. Available at: https://zensai.com/articles/are-you-rewarding-your-employees-fairly-and-effectively/ [Accessed 9 Feb. 2025].

CIPD (2023). REWARD MANAGEMENT Focus on employee benefits. [online] Available at: https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/reports/2018-pdfs/reward-management-report-2018_tcm18-51630.pdf [Accessed 9 Feb. 2025].

CIPD (2024a). CIPD | Organisational culture. [online] CIPD. Available at: https://www.cipd.org/en/views-and-insights/cipd-viewpoint/organisational-culture/ [Accessed 9 Feb. 2025].

CIPD (2024b). CIPD | Pay Structures and Pay Progression | Factsheets. [online] CIPD. Available at: https://www.cipd.org/en/knowledge/factsheets/pay-structures-factsheet/ [Accessed 9 Feb. 2025].

CIPD (2024c). CIPD | Strategic & Total Reward | Factsheets. [online] CIPD. Available at: https://www.cipd.org/en/knowledge/factsheets/strategic-total-factsheet/ [Accessed 9 Feb. 2025].

Cotton, C. (2022). CIPD | Performance Related Pay | Factsheets. [online] CIPD. Available at: https://www.cipd.org/en/knowledge/factsheets/pay-performance-factsheet/ [Accessed 9 Feb. 2025].

Dewar, K. (2025). Organizational Culture: Definition, Importance, and Development. [online] Achievers. Available at: https://www.achievers.com/blog/organizational-culture-definition/ [Accessed 9 Feb. 2025].

Emma and Emma (2023). 3R Strategy. [online] 3R Strategy – The Pay & Reward Consultants & Partners. Available at: https://3r-strategy.com/narrow-vs-broad-career-bands-understanding-the-pros-and-cons/ [Accessed 9 Feb. 2025].

Empuls (2025). What Are Extrinsic Rewards and Why Are They Important? [online] www.empuls.io. Available at: https://www.empuls.io/glossary/extrinsic-rewards [Accessed 25 Feb. 2025].

Empuls (2025a). What are Intrinsic Rewards & Why are they Important? [online] www.empuls.io. Available at: https://www.empuls.io/glossary/intrinsic-rewards [Accessed 9 Feb. 2025].

Empuls (2025b). What is Employee of the Month and Why is it Important? [online] www.empuls.io. Available at: https://www.empuls.io/glossary/employee-of-the-month-award [Accessed 9 Feb. 2025].

Engage Employee (2025). Unlocking Success: The Impact of Benefits and Rewards in the Workplace. [online] Engageemployee.com. Available at: https://www.engageemployee.com/blog/unlocking-success-the-impact-of-benefits-and-rewards-in-the-workplace [Accessed 9 Feb. 2025].

Henderson Loggie (2023). In-house payroll vs outsourced payroll: pros & cons. [online] Henderson Loggie. Available at: https://hlca.co.uk/resources/in-house-payroll-vs-outsourced-payroll-pros-cons/ [Accessed 9 Feb. 2025].

HR List (2024). Employee Ranking Systems: Pros, Cons & Alternatives. [online] allhrsoftware.com. Available at: https://allhrsoftware.com/blog/employee-ranking-systems-pros-cons-and-alternatives/ [Accessed 9 Feb. 2025].

Ibitomi, T., Ojatuwase, O., Emmanuella, O. and Eke, T. (2022). Influence of Intrinsic Reward on Employees’ Performance in Deposit Money Banks in Ondo State, Nigeria. Journal of Human Resource and Sustainability Studies, [online] 10(03), pp.528–541. doi:https://doi.org/10.4236/jhrss.2022.103032.

Inproma (2019). Industry Insights | The Pros and Cons of Monetary vs. Non-Monetary Incentives for Employees. [online] Inproma. Available at: https://www.inproma.com/industry-insights/the-pros-and-cons-of-monetary-vs-non-monetary-incentives-for-employees/ [Accessed 25 Feb. 2025].

Joseph, C. (2025). Pros & Cons of Competency Based Pay Plans. [online] smallbusiness.chron.com. Available at: https://smallbusiness.chron.com/pros-cons-competency-based-pay-plans-2827.html [Accessed 9 Feb. 2025].

Kinne, A. (2022). What Are the Benefits of Employee Recognition? | Workhuman. [online] www.workhuman.com. Available at: https://www.workhuman.com/blog/benefits-of-employee-recognition/ [Accessed 9 Feb. 2025].

Kowalska, K. (2023). Extrinsic Motivation: Definition, Examples, Pros & Cons | Ogamify. [online] Available at: https://ogamify.com/employee-motivation/what-is-extrinsic-motivation/ [Accessed 9 Feb. 2025].

Lauren (2024). Reward & Recognition in the Workplace | A Guide For HR Teams. [online] Incentivesmart. Available at: https://www.incentivesmart.com/blog/reward-recognition-workplace/ [Accessed 9 Feb. 2025].

LexisNexis (2025). National minimum wage Definition | Legal Glossary | LexisNexis. [online] @lexisnexis. Available at: https://www.lexisnexis.co.uk/legal/glossary/national-minimum-wage [Accessed 9 Feb. 2025].

Maini, N. (2023). Job Evaluation Using Point Factor. [online] Synergogy. Available at: https://synergogy.com/job-evaluation-using-point-factor/ [Accessed 9 Feb. 2025].

Manzoor, F., Wei, L. and Asif, M. (2021). Intrinsic Rewards and employee’s Performance with the Mediating Mechanism of employee’s Motivation. Frontiers in Psychology, [online] 12(12). Available at: https://www.frontiersin.org/journals/psychology/articles/10.3389/fpsyg.2021.563070/full [Accessed 25 Feb. 2025].

Morris, A. (2025). Types of Pay Structure: Essential Guide | DavidsonMorris. [online] DavidsonMorris | Solicitors. Available at: https://www.davidsonmorris.com/pay-structure/ [Accessed 9 Feb. 2025].

Novakovic, R. (2024). 9 Tips on How to Achieve Equity in Employee Rewards – Semos Cloud. [online] Semos Cloud. Available at: https://semoscloud.com/resources/blog/9-tips-on-how-to-achieve-equity-in-employee-rewards/ [Accessed 9 Feb. 2025].

Plum (2024). Point Factor Method: Fair Job Evaluation Guide. [online] Plumhq.com. Available at: https://www.plumhq.com/hr-glossary/point-factor [Accessed 9 Feb. 2025].

QIC (2025). Cash vs. non-cash incentives and rewards – which motivates better? [online] Quality Incentive Company. Available at: https://qualityincentivecompany.com/recognition-incentive-resources/article-white-paper/cash-vs-rewards/ [Accessed 25 Feb. 2025].

Rahul, K. (2024). Intrinsic Motivation. [online] Wallstreetmojo.com. Available at: https://www.wallstreetmojo.com/intrinsic-motivation/ [Accessed 9 Feb. 2025].

Rataj, M. (2023). What is skill-based pay and why it matters. [online] Sloneek®. Available at: https://www.sloneek.com/blog/what-is-skill-based-pay/ [Accessed 9 Feb. 2025].

Raymond, D. (2024). Top 10 Pros and Cons of Using Payroll Software. [online] AceProject. Available at: https://www.aceproject.com/blog/top-10-pros-cons-of-using-payroll-software-9387815/ [Accessed 9 Feb. 2025].

Rice, A. (2021). Extrinsic Motivation: Examples, Pros, and Cons. [online] Psych Central. Available at: https://psychcentral.com/health/extrinsic-motivation [Accessed 9 Feb. 2025].

Schurk, N. (2023). Understanding Salary Structures: Guide for HR Professionals. [online] www.goco.io. Available at: https://www.goco.io/blog/hr-guide-different-types-of-pay-structures [Accessed 9 Feb. 2025].

SCIO (2024). Pay and reward | Introducing a reward system. [online] Think Business, Think Equality. Available at: https://www.thinkbusinessthinkequality.org.uk/toolkit/7-pay-and-reward/32-introducing-a-reward-system/ [Accessed 9 Feb. 2025].

Serrador, I. (2025). Skill based pay pros & cons (Compensation method explained). [online] Sesame HR. Available at: https://www.sesamehr.com/blog/benefits-compensation/skill-based-pay/ [Accessed 9 Feb. 2025].

Shah, S. (2022). Cash vs. Non-Cash Incentives: All You Need to Know – Incentivate Blog. [online] Incentivatesolutions.com. Available at: https://incentivatesolutions.com/blogs/cash-vs-non-cash-incentives-all-you-need-to-know/ [Accessed 9 Feb. 2025].

SteveC (2023). Salary review pros and cons for today’s organisation. [online] Think Beyond. Available at: https://www.think-beyond.co.uk/salary-review-pros-and-cons-for-todays-organisation/ [Accessed 9 Feb. 2025].

The Human Capital Hub (2023). Broadbanding And Why Your Organisation Should Try It. [online] Human Capital Hub. Available at: https://www.thehumancapitalhub.com/articles/Broadbanding-And-Why-Your-Organisation-Should-Try-It [Accessed 9 Feb. 2025].

Thompson, J. (2019). Advantages & Disadvantages of Employee Ranking Tools. [online] Chron.com. Available at: https://smallbusiness.chron.com/advantages-disadvantages-employee-ranking-tools-22523.html [Accessed 9 Feb. 2025].

Tsang, S. (2020). Why You Need to Give Employees Public Recognition. [online] Fond. Available at: https://www.fond.co/blog/why-public-recognition/ [Accessed 9 Feb. 2025].

Wellhub Editorial Team (2025). Job Evaluation: Methods, Benefits, and Best Practices. [online] wellhub.com. Available at: https://wellhub.com/en-us/blog/organizational-development/job-evaluation/ [Accessed 9 Feb. 2025].

Whitfield, D. (2024). Salary Survey: Why You Need Them & Why They Are Not Enough. [online] www.hrdatahub.com. Available at: https://www.hrdatahub.com/blog/salary-survey-why-you-need-them-why-they-are-not-enough [Accessed 9 Feb. 2025].

Wickham, N. (2023). The Importance of Employee Recognition: Statistics and Research. [online] Quantum Workplace. Available at: https://www.quantumworkplace.com/future-of-work/importance-of-employee-recognition [Accessed 25 Feb. 2025].

Wilson, M. (2023). The Impact of Monetary Rewards on Employee Motivation and Performance. [online] Bucketlist. Available at: https://bucketlistrewards.com/blog/impact-monetary-rewards-employees/ [Accessed 9 Feb. 2025].

Bibliography

Dessler, G. (2020). Fundamentals of human resource management. thuvienso.hoasen.edu.vn. Pearson.

Lehmann, O.F. (2018). Project Business Management. Auerbach Publications eBooks. doi:https://doi.org/10.1201/9781315277387.

Steward, G., L and Brown, K.G. (2019). Human Resource Management. [online] Google Books. Available at: https://books.google.co.ke/books?hl=en&lr=&id=53eYDwAAQBAJ&oi=fnd&pg=PA2&dq=Human+resources+book&ots=XGvMmbsb1j&sig=X68LNFIqtJ67Ur8I18bFdJ6qnjI&redir_esc=y#v=onepage&q=Human%20resources%20book&f=false [Accessed 9 Feb. 2025].

Must Read:

• 5HR03 Reward for Performance and Contribution