Financial performance-related benefits
5HR03 – Reward for performance and contribution
This CIPD Level 5 learning video, part of unit 5HR03 – Reward for performance and contribution, explores financial performance-related benefits and their merits within organisational reward strategies. The video examines various benefit types including performance-related pay, profit-sharing, gainsharing, share ownership, bonus schemes and commission, analysing how each contributes to employee engagement, motivation and organisational commitment. By understanding the assessment criteria AC 2.3 requirements, you'll gain the knowledge to explain which financial benefits best suit different organisational contexts and employee preferences, whilst considering resource implications and budget development.
Assessment Criteria 2.3
Explain the merits of different types of benefits offered by organisations.
Indicative Content
Types of benefits offered and merits of each: types of benefits such as performance-related pay; profit-sharing; gainsharing; share ownership; payment by results; bonus schemes; commission; pensions; healthcare; insurance cover; sick pay; enhanced redundancy pay; career counselling; company loans; season ticket loans; company cars; concierge services; fees to professional bodies; enhanced maternity; paternity and adoption leave and pay; childcare; sports and social facilities, etc; flexible benefits; impact of reward costs and ability of organisation to resource these costs; development of budgets and resource recommendations. Individual differences in what is important in their reward; merits of each type of benefit: general merits include increased employee engagement, motivation and commitment to the organisation, reduced churn, helps to attract employees to the organisation.
What You'll Learn
Video covering: Financial performance-related benefits
About 5HR03 – Reward for performance and contribution
This unit focuses on how internal and external business factors influence reward strategies and policies, the financial drivers of the organisation and the impact of reward costs and rewarding performance
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