Reward systems that organizations use to enhance employee performance

The reward systems that organizations use to motivate employees include informal rewards, flexible benefit plans, profit-sharing, and skill-based pay. Informal rewards programs refer to those that result from interactions between people. 

 

Informal rewards are designed to encourage continuous improvement. 

 

Flexible benefit plans allow employees to choose the benefits they want, tailoring the benefit package to their own needs, rather than having management choose for them. 

 

Profit-sharing programs give employees a portion of the company's profits. 

 

Skill-based pay plans determine pay levels according to the number and level of job-related skills the employee has learned.