1. Reward Systems 1 1

2. business success Why do we deal with reward systems? incentives
motivation
satisfaction
business performance
business success 2

3. Classification of incentive components
wage and salary regulations
profit sharing
company benefits
personnel development and career opportunities
working hours and break control
work content and place design 3

4. General goals of reward systems
consistence and support to the corporate targets and strategies
flexibility while changing of competitive and environmental conditions
compliance of laws, standards and ethical principles
consideration of stakeholder interests 4

5. Components of monetary incentive systems
fixed periodic payments
salary
situation based fixed and variable payments
premiums, bonus …
indirect fixed periodic payments
health insurance, invalidity pension …
indirect monetary payments
company car, mobile phone …
neutral payment components
participation (e.g. equities) 5

6. Overview of wage and salary classes
e.g. christmas bonus
certain wage rate per time
e.g. bonus for quality, punctuality
single/ group premium
e.g. time-based piece rates 6

7. Components of non monetary incentive systems
personnel development and career opportunities
social communication
group membership
cooperative management
working hours and break control
work content design
workplace design 7

8. The Cafeteria-Approach
flexible payment design  employee is able to choose between different payment components
in return for use of individual selection the employee disclaim a part of his salary
characteristics:
individualization of payment components according to an specific budget,
periodically returning option and
an offer with several alternatives 8

9. The Cafeteria-Approach
advantages:
company can win new staff
and increase the connection of the employees to the enterprise
annual expenditures for this area are exactly calculable
increased motivation of staff
through periodically returning option employee can adopt his changed needs
his job satisfaction as well as identification with his employer increase 9

10. The Cafeteria-Approach
disadvantages:
in general awarded achievements are easily considered as natural and expected incentive effects are missed
some options limited by tax legislation and wage agreements
good consultation of the employee is also often absent 10

11. Conclusion Incentives are drivers for motivation
 successful performance
It depends on various factors (e.g.)
 Company policy
 Competitive context
 law and regulations
mixed forms of monetary and non-monetary reward 11

12. Thank you for your attention!!!12