(Solution) 5HR03 New Middle East (AC1.2) Assess the contribution of extrinsic and intrinsic rewards to improving employee contribution and sustained organisational performance
Solution
Extrinsic Rewards
This defined in CIPD (2022) to be “tangible rewards intended to motivate staff for executing their functions with excellence and exercise good behavioural tendencies”. In Eco-Insulate, they can issue their employees with every month pay, bonuses issuance, promotions, pension schemes and paid leave. Hence, being external, contribution of employees informs their practice. The employees gain in terms of wellbeing financially and motivated to exercise discretionary behaviours (CIPD, 2024). In Eco-Insulate, bonuses could motivate staff to excel in their performance without compromising with scope of quality advanced.
Also, part of Extrinsic Rewards entails fully paid-leave and pension scheme enhance how they are satisfied in their roles with retention enhanced. This is since they promote motivation of the employees, dissatisfaction and lower turnover (Emmanuel & Nwuzor, 2021).
Considering negatives, extrinsic rewards advanced with limited non-financial rewards contribute to short-term motivation and commitment scope to organisation. All extrinsic rewards enhance sustained engagement.
Intrinsic Rewards
Being offered internally, intrinsic rewards motivate staff internally and personalised fulfilments attained. In Eco-Insulate, the examples of these would include being recognised, autonomy in work and individualised growth (CIPD, 2024b). The provision of intrinsic rewards hence promotes how the employees are engaged through sense of belongingness attained.
Further, with internal fulfilment of the employees attained, individual growth opportunities are enhanced hence their contribution appreciated. This is with Eco-Insulate defining recognition approach to target employees such as top-grading and pay-based time off also identified appreciation for being employee of the year. Eco-Insulate staff morale, creative and innovative would be enhanced therefore retained for long in their organisations (Mazoor et al., 2021).
Support for Eco-Insulate Performance
For sustainable performance, Eco-Insulate would need to integrate both intrinsic and extrinsic rewards. The extrinsic rewards…………
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