{"id":38961,"date":"2015-07-23T18:12:54","date_gmt":"2015-07-23T12:42:54","guid":{"rendered":"http:\/\/vskills.in\/certification\/blog\/?p=38961"},"modified":"2024-04-03T13:19:51","modified_gmt":"2024-04-03T07:49:51","slug":"compensation-extrinsic-and-intrinsic-rewards","status":"publish","type":"post","link":"https:\/\/www.vskills.in\/certification\/blog\/compensation-extrinsic-and-intrinsic-rewards\/","title":{"rendered":"Compensation : Extrinsic and Intrinsic Rewards"},"content":{"rendered":"<p style=\"text-align: center\"><a ref=\"magnificPopup\" href=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/Compensation-Extrinsic-and-Intrinsic-Rewards.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-38987\" src=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/07\/Compensation-Extrinsic-and-Intrinsic-Rewards.jpg\" alt=\"Compensation Extrinsic and Intrinsic Rewards\" width=\"279\" height=\"253\"><\/a><\/p>\n<p>Compensation is what employees receive in exchange for their contribution to the organisation .<\/p>\n<p><strong>Intrinsic Rewards :<\/strong> It includes all activities that have an impact on the intellectual , emotional , and physical well being of an employee and is not specifically covered by the extrinsic compensation system .<\/p>\n<ul>\n<li>It is the least costly and one of the most powerful rewards of the organisation .<\/li>\n<li>It can be done by simply putting a pat on the back of the employee thereby recognizing them as useful and valuable contributors .<\/li>\n<li>This kind of recognition leads to employee feeling of self worth and pride in making contributions .<\/li>\n<li>It can be done by providing a healthy and safe working environment to the employees.<\/li>\n<li>More focus should be given on improving quality of work life of employee .<\/li>\n<li>Employees feel free to choose the way of working , work from home facility comes under the type of reward .<\/li>\n<li>Another kind of intrinsic rewards are career growth paths of employees and enhancing their employ-ability.<\/li>\n<\/ul>\n<p><strong>Extrinsic Rewards :<\/strong> They are tangible rewards given to the employees by the managers . it mainly &nbsp;consists of the following :<\/p>\n<p>Basic pay wages and salary add-ons , Deferred payments ( pension plans , supplementary income plans etc ) , services and benefits ( accommodation , medical benefits group insurance , conveyance etc ) , pay for work not done ( gazetted holidays , leaves etc) .<\/p>\n<p><strong>Objectives that guide the design of compensation system :<\/strong><\/p>\n<ul>\n<li><strong>Individual Equity&nbsp;<\/strong>\n<ul>\n<li>To establish a fair and equitable remuneration offering a similar pay for similar work .<\/li>\n<li>To attract qualified and competent personnel .<\/li>\n<\/ul>\n<\/li>\n<li><strong>External Equity&nbsp;<\/strong>\n<ul>\n<li>To retain present employees by keeping wage level in tune with the competitors .<\/li>\n<li>To control labor cost and administrative cost in line with ability of the organisation to pay .<\/li>\n<li>To improve motivation and morale of employees and to improve union management t relations.<\/li>\n<li>To project a good image of the company and to comply with legal needs relating to wages and salaries .<\/li>\n<li>To comply with legal rules .compensation &nbsp; programmes must invariably satisfy governmental rules regarding minimum wages , bonus , allowance etc.<\/li>\n<li>Ease of operation . the compensation management system should be easy to understand and operate . then only it will promote understanding regarding pay relation matters between employees , unions and managers .<\/li>\n<li>Reward new and desired behavior . pay should reward loyalty , commitment , experience , risk taking initiative and other desired &nbsp;behaviors .<\/li>\n<\/ul>\n<\/li>\n<li><strong>Internal Equity&nbsp;<\/strong>\n<ul>\n<li>This ensures that more difficult jobs are more<\/li>\n<li>seniority of employee should take into considerations .<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><a href=\"http:\/\/www.vskills.in\/certification\/Human-Resources\">Click here for government certification in Human Resources<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Compensation is what employees receive in exchange for their contribution to the organisation . Intrinsic Rewards : It includes all activities that have an impact on the intellectual , emotional , and physical well being of an employee and is not specifically covered by the extrinsic compensation system . It is the least costly and&#8230;<\/p>\n","protected":false},"author":1312,"featured_media":38987,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[1529],"tags":[878,5436,5435],"class_list":["post-38961","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-human-resources-2","tag-compensation","tag-extrinsic-rewards","tag-intrinsic-rewards"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Compensation : Extrinsic and Intrinsic Rewards - Vskills Blog<\/title>\n<meta name=\"description\" content=\"Learn and know Compensation is what employees receive in exchange for their contribution to the organisation. 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