According to the CIPD (2020), line managers have an important role in reward management; they are responsible not only for adhering to the governing reward policies and procedures set by HR but also for defining and implementing the company’s reward strategy on the ground. Using evidence-based criteria and performance data to assess employee contributions and evaluating the successes and failures of the reward package are both essential components for ensuring that the reward strategy and policies are in sync with the organisation’s values and that appropriate rewards are given to employees in a timely manner.
Organisations often develop their reward strategies based on the overall values and beliefs that they stand for, and it is up to line managers to ensure that these are upheld in practice. Managers should ensure that their practices adhere to the ethical standards demanded by the employer and any additional legislative requirements which may place further legal and ethical considerations upon them (Russell et al.,2018). For example, GDPR regulations require businesses to protect and properly handle employee data (CIPD, 2021). Risk profile and job evaluation should also be considered when making reward decisions for individual employees, ensuring that the package considers the relative value of different roles and the unique contributions of an individual.
Line managers also have a role in making decisions about both financial and non-financial rewards. Financial rewards can be used to motivate and incentivise individuals and recognise their performance and contribution. These rewards can range from base salary to more creative approaches such as bonuses or stock option schemes. Line managers should also consider non-financial rewards such as work-life balance, working conditions, work itself, job enrichment and development when reviewing and renewing, or making changes to, employees’ reward packages. It is essential to gain a deep understanding of how these elements impact engagement, motivation and performance (Kehoe & Han, 2020). For instance, the survey conducted by Xpert HR suggests that incentivised career development opportunities that develop leadership or employability skills are deemed more valuable and appreciated by employees than monetary-based incentives when it comes to their existing job (Wales, 2018). Building close relationships with employees, recognising their efforts with immediate rewards, and showing appreciation for their contributions through gestures such as team lunches or days can help create long-term motivation and engagement.
