Compensation and Reward Programs It Research Paper

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Some of these key components, such as work modification techniques like telecommuting, are highly cost effective and companies may be able to implement these components more readily than they will be able to provide more expensive components such as healthcare coverage. Moreover, work modification programs may be able to justify higher levels of pay and benefits for participating employees as a result of increased productivity. For instance, Raines and Leathers (2001) note that, "Telecommuting may alter the wage bargain as workers increase their productivity by working at home. Productivity has increased 30% in some telecommuting industries" (p. 307). It should be pointed out, though, that the costs associated with funding and administering an effective compensation and reward program can be prohibitively expensive unless management keeps a close eye on the cumulative effects of these programs.

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In this regard, Hayes (2006) emphasizes that, "Employers must calculate and pay salaries, schedule and track tax and benefits payments, meet a host of workplace regulations and keep accurate records about every detail" (p. 49). Therefore, although there is no "one-size-fits-all" approach available, effective compensation and reward programs will tailor their offerings to those areas most desired by employees in an equitable fashion that shares the wealth and recognizes and rewards superior performance......

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