The design and implementation of a rewards system for ICE

Abstract

This project was commissioned to design a rewards scheme for I.C.E, a small gourmet ice cream manufacturer. The project also set out to solve a number of employment issues. There were two main objectives of this project. The first was to discover what rewards were, what types of rewards there were, and their purpose in an organisation. The second objective was to find out from the employer what the purpose of the rewards scheme was to be, as well as discovering from the employees what they valued most about their jobs. This objective was set out to discover what rewards would work best at I.C.E. The first objective was met by reviewing the literature on rewards and the second by interviewing the manager and employees at I.C.E. From the literature it was discovered that I.C.E should consider the needs of its employees when designing and implementing a rewards scheme. It was also discovered that there are a number of non-monetary rewards that can improve employee production more effectively than monetary rewards. The interviews with Mr X and the employees revealed a concern over the number of hours that one employee worked, the lack of a written employment contract and the wages received by the employees. The interviews also bought to light aspects of the job that employees placed value on. It was discovered that the employees valued 'open communication' and 'effect on family' most in their job. Three major recommendations are formed from the research to deal with the problems identified: 1. Suggested implementation of rewards • I.C.E needs to be clear on the objectives of the rewards scheme. • Targets established need to be in the reach of the employees, without over extending them, as well as improving productivity. • Targets need to be set at discretion of Mr X. It is suggested however that they be set weekly or monthly. • There must be a well-tested measurement system in place. • Performance expectations must be explicit and highly quantified. • Mr X must communicate results openly arid regularly. 2. Type of rewards The following rewards are recommended for I.C.E based on employee responses: • Open communication • Recognition • Christmas bonuses • Flexitime • Other non-monetary rewards, for example, meal vouchers, movie/theatre/game tickets, time off and supplier giveaways. 3. Employment issues The following employment issues need to be addressed: • Pay issues • Employee working hours • Employment contract • Advancement of employees.