7RWM Unit Overview

 Module description

The cipd level 7 reward management module educates HR professionals on how to create a rewarding work environment that is aligned with the organization's objectives. The section assists human resource professionals in developing the appropriate reward programmes and policies that are critical in retaining employees within an organisation. In this context, learners enrolled in the course are intended to develop information about the industrial and market trends influencing decision-making regarding employee compensation. Students will learn about the following subjects as they progress through the unit, which are regarded critical for developing a grasp of the incentive management module.

Tools for analysing an organization's remuneration policy

The SWOT and PESTLE analyses aid in determining the internal and external factors influencing the organization's decisions on employee compensation. These methods serve as the foundation for identifying external determinants, which are determined through an external examination of the market and industry in which the organisation operates. As a result, human resource experts are able to recognise trends and so design the appropriate rules for implementing rewarding tactics. Students should have an understanding of how to properly apply analysis techniques in order to discover elements that influence the decisions made while creating an organization's incentive strategy. Students should get an understanding of how to apply the identified elements to real-world situations inside the organisation in order to improve their ability to make sound reward decisions.

Recognize intelligence

The term "reward intelligence" refers to the information gathered by the human resources professional on matters pertaining to rewards. To obtain reward intelligence, human resource students should learn that surveys, market intelligence, and marketing from other businesses are all effective methods of gathering information. These are considered to be reward intelligence drivers, assisting professionals in making judgments about the salary, compensation, and perks to be provided to employees (CIPD, 2015).

Total-rewards principles

Students enrolled in the course learn about the worth of employees in an organisation through an evaluation of the organization's culture and the implementation of appropriate compensation schemes that benefit employees as individuals, teams, and the organisation as a whole. Total rewards programmes ensure that employees receive both monetary and non-monetary benefits. Additionally, the problem of workforce preference is heavily weighted in determining which reward schemes should be offered to employees. Additionally, there is the problem of pay for performance, in which employees are compensated based on their performance. In this context, it is critical for students to understand how they should be able to choose the appropriate total compensation packages for their employees. This should be influenced by the organization's style and the reward systems implemented inside it (Ekwochi, Eneh, and Orga, 2017).

Rewards that are just, equitable, consistent, and transparent

Students taking this course should understand that one of their responsibilities as human resource professionals is to ensure that they design policies that promote justice and equity in employee compensation. Armstrong (2009) asserts that being fair, consistent, and transparent enables human resource professionals to identify with the most critical pillars of reward administration. This is critical because it assists in reinforcing organisational ideals among employees and other organisational stakeholders. In this context, it is critical to connect with the organization's incentive objectives in order to ensure that students understand how to make every employee feel appreciated and fairly compensated for the work they perform. Organizations that value justice, equality, consistency, and transparency in their compensation and reward practises benefit from strong employee satisfaction and morale, which translates into high employee performance.

As representatives of organisations and human resource professionals charged with fostering fairness and transparency, students enrolled in this course should be prepared to learn the distinction between intrinsic and extrinsic rewards. Intrinsic rewards are those that give an individual with personal fulfilment and delight. Extrinsic rewards are offered by employers and are not provided by individuals. Both are considered to be motivating factors for employees. The subject does teach students about employee rights, and as a result, they also learn about their rights when it comes to being compensated at their places of employment.

Line managers' contribution to reward decision-making

Line managers have an obligation to guarantee that their decisions about what and how to pay employees are influenced by human resource professionals. This is critical since line managers work directly with employees and are familiar with the contributions employees bring to the organisation. This is more suited to performance-based compensation, because line managers are accountable for measuring employees' performance. Line managers should be empowered to make the most critical choices on employee compensation. Organizations benefit from the influence of line managers in determining the appropriate remuneration packages that contribute to an increase in employee satisfaction. Thus, students enrolled in this course should be enthusiastic to learn that the authority and influence to make pay and benefit decisions for employees should be delegated not only to human resource professionals, but also to line managers who interact directly with employees.

The outcomes

After completing this course, learners should be able to: • Understand the context of reward management by being familiar with the numerous factors that influence reward decisions in the workplace.

• Understand how to use reward intelligence to develop reward principles and policies for use within the organisation • Understand the concepts of fairness, equity, consistency, and transparency when it comes to rewarding employees in the organisation • Be able to articulate reward policy initiatives and how they are implemented within the organisation

Conclusion

The reward management unit is for persons interested in growing and developing their careers in human resources. The unit provides information that is beneficial in assisting individuals in developing the appropriate methods and policies for boosting their decision-making processes around how to reward employees in the organisation. By the end of the course, students will have acquired additional knowledge and abilities that will enable them to take the appropriate actions and make the appropriate decisions on reward management options. It is a unit that assists in determining the relationships between human resources and line managers in order to analyse each's position within the broader organisational environment.