At the moment, I'm in about as good a place as I've ever been at work, and loving what I'm doing. I've been gifted with a Manager who seems to think I'm something special that's worth developuing and investing in and that's such a special feeling. I even got a nice bonus this month, which was a lovely surprise!
My New Role is as a Reward Manager I'm stepping away from pure payroll and my assistant is stepping up into my previous Payroll lead role which I'm going to be mentoring her for. It's a new role, so one I can make my own, and I'm very excited about it. I'm responsible for formulating a reward strategy for the company, and reward includes everything from extrinsic benefits such as wages and medical insurance to intrinsic benefits such as recognition and work autonomy.
One of the things my Manager and I agreed on was me undertaking some training, and so I have just, this week, started doing a Level 5 qualification in Reward Management. It's a foundation degree level, and is one module of an overall HR degree. And so, of course I started it the same week my laptop conked out! Luckily, I've got a work laptop that I can bring home to study on (and use for other purposes, such a Livejournal !! ;) )
Just for fun, here's a little bit of my work: thrilling stuff, I can assure you! :)
Classic economic theory
If there is a surplus of a certain product in the marketplace the price for that product will drop. However, if there is not enough of a certain product in the marketplace the price will increase, because people are prepared to pay more for it just so that they can get it
Skills work in the same way as this. IN times of high unemployment when there are many applicants with similar skills applying for a job, employers don't have to offer such high reward packages to attract quality applicants. Conversely where skills are in short supply, applicants with the necessary skills set can demand higher packages.
Efficiency wages theory
This theory says that organisations will pay more than the market rate because they presume that paying more will attract better employees, and hence will lead to better productivity. They also presume that there will be less employee turnover, because employees will have to take a pay drop if they leave and go elsewhere doing a similar job.
This is an important part of reward strategy. Salary surveys frequently divide the salary range for a specific skills set into quartiles, and organisations need to decide whether they want to be known as an upper, lower or median quartile payer.
This decision is, of course, an economic matter, but it can also be reputational. An employer may have to pay at an upper quartile level in order to attract applicants because of other factors ie: their location, a potentially dangerous or unpleasant work, or unsociable hours.
Human capital theory
This theory sees the individual as a set of skills that they ‘rent out’ to an employer. In return for renting out their skill set, the individual expects jobs satisfaction, job security and an appropriate level of earnings.
In return for their investment the employer expects performance, productivity and flexibility.
Hence, this theory sees the relationship between the employer and the employee as a straightforward business transaction. The employee has something that the employer wants (skills) and the employer has to pay for this. In return, the employee must ensure that those skills are used effectively. If they are not, the employer might decide to stop ‘renting’ the skills, and hence the employment relationship would end.