My Personal Opinion on How Benificial the Reward System Actually Is

Companies step into the competitive environment of conducting business to provide quality products and services to its customers. At the same time, they aim at reducing their costs to stay in the game. From a start-up to a unicorn company, every organization witnesses a new department or a vertical to its business structure during its course. Of these, the most indispensable asset is considered to be the Human Resource department. The HR department provides a platform to enter the job market and seek competent personnel. To attract the best suited for the job, companies indulge in creative salary packages. According to psychology, a mind is programmed to want more. So, is a creative salary package enough?

A reward is simply a bonus and can take the form of monetary or non-monetary compensation which is given to employees for performing over and beyond. Often the terms ‘reward’ and ‘recognition’ are used interchangeably. However, they are juxtaposed concepts. A reward involves creating a sense of gain but recognition seeks to acknowledge the efforts of the employees. Similar to a coin, a reward has two sides to it. From the employer’s point of view, a reward aims at creating a feeling of belonging to the organization and also helps in balancing the status quo of employees. However, to the employees, this a symbol of achievement. Rewarding employees is very beneficial to the organization as it instigates a domino effect across different verticals, encouraging each employee to give in their best. A clear-cut reward system is an essential additive in ensuring a low turnover ratio and a high-quality work environment. Netflix, is one such company which has been triumphant in creating a beyond satisfactory Human Resource chain.

Netflix focuses greatly on devising creative and effective reward systems to ensure a satisfied workforce. One such system is the application of Maslow’s principles, which divides human needs into 5 interdependent stages. By offering competent salary packages, monetary rewards, secure jobs and health care services, Netflix ensures that the physiological and safety needs are met. Moreover, due to the rigidity and unsupportive scalar chains, employees find it difficult to communicate with other colleagues and higher-ups. To beat this chaos, Netflix has created a very effective communication network which helps each employee connect better with other members of the organization, thus satisfying their social needs. Also, Netflix focuses on satisfying its workers' esteem needs by having several recognition programs and appraisal systems to acknowledge individual talents. This pushes them to be the blue-eyed boy among the organization.

In my opinion, a company’s reward system proves to be very beneficial in ensuring a sense of belonging among employees. With effective reward channels, employees tend to work harder. In turn, the workspace provides a positive outlook. Most employees in the organization seek to be promoted to a higher level or seek opportunities for further growth. With a reward system in place, an employee shines brighter, improving their performance and of the people around. Every company indulges in creative patterns to reward employees indicating that their human resource is the most imperative.