Employee reward strategies

The function and purpose of employee pay from the company's point of view:

The first function, is to attract someone to do the job. There is a demand for labour in the part the company and the wage is how the company pulls the employees in. The second function would be to motivate employees, because the company thinks that employees like money so the companies pay the employees to fill the job and to motivate the workers.

Different reward system:

There are two basic types of reward system. One's reward system based on time, with payment by the hour. The other method is payment according to effort, or on output or performance. We can call this an incentive pay scheme. In this case, people have a basic rate of pay and then the rest of the pay is tied to how much they do.

The advantages and disadvantages of these reward system: 

There are different advantages and disadvantages. There is a cost involved in paying people by time as you have to try to insure that people work by supervising them. But the advantage of payment by time is that it's simple and also you don't have to think of what to tie the payment to. This brings me to the disadvantages it the payment according to output.You have to find a measure of output that produces the desired results for the company.
You can twist to suit your own personal benefit. The advantage of payment by output is that you get more effort, The disadvantage is that you tend to get a sort of gaining of the system if you like, that's inevitable.