Employee Performance and Reward Management Issues

Employee Performance and Reward Management Issues

Analysis of the performance and reward management issues

Don who is the Mercury’s human resource manager believes in buying skilled staff rather than building a competent team for the company. It provides one of the issues that human resource management is facing in the business. Buying of skilled human resource personnel will involve advertising of posts for the most appropriate people that he wants to work with (Cascio, 2018).  It is evident that people he says are competent and wants might not match the task that he wants them to perform. Buying of skilled personnel will cost a lot of money and time during interviews.

Also, after buying the personnel in most cases, it takes a lot of time for them to adapt to the company’s environment at the same time they are supposed to work hand in hand with other stakeholders. The issue of getting the personnel from other companies will also be a challenge. They might be bought but might be unable to perform the tasks that they are supposed to do which might be challenging. Due to that fact, they will need to be taken through a training process that will refresh them on the duties that they are supposed to perform at their workstation (Epstein & Buhovac, 2014).

The other most fundamental issue that faces Mercury human resource management is the rewards of employees through the assessment process that they use which are not satisfying. When dealing with reward management, the most important thing that should be considered is an understanding of how the strategies used will satisfy the needs and aspirations of the employees based on their security and their stability in the company and career development. The issue at hand is when Mercury Company assesses its employees based on one-page paperwork and rewards the top 20 best performers while dismissing the bottom 10. Dismissal of the bottom ten performers does not provide employee security in a company it instead makes other employees underperform, and in most instances, they are demotivated through such actions.

Employee rewarding and employee career development is very important in the human resource management. It forms part of the issues that makes employ work better and enable them to attain the company’s targets. For the employees whose performances have not been realized should therefore not be dismissed based on that fact rather they should be motivated even to work better (Epstein & Buhovac, 2014).  Managers are supposed to be committed to making sure that employees have the skills to get the best out of them

Recommendation to solve performance and reward management issues

Instead of buying skilled personnel, the company should ensure that they build experienced staff on their own. When a company focuses on developing the employees that they have, it ensures that they attain a competitive advantage. Most of the employment trends have changed of late into an aspect whereby employees are motivated by an employer who will upgrade their skills to make them competitive with their counterparts. The other importance of building own employees is the fact that most of the inbuilt employees have increased worker productivity whereby they have a capability of performing the right task based on what they have been specially trained for (Epstein & Buhovac, 2014).

It is essential to building employees since it reduces the rate of employee turnover. Most of the bought highly skilled people are associated with employee turnover due to pay rise and other factors while employee training is associated with low rates of employee turnover. Through the building of employees in a company, it ensures that most of the personnel are aligned with the needs of the company. It also enables the company to be in a position of adapting to the changing business structures; employees are tailored in a way that they have creative minds in solving issues and making the company sustains its challenges.

According to Redman and Wilkinson (2006), the company should change the method in which it rewards its best-performed employees and dismissing those who have underperformed. Before rewarding is done, it should consider identifying the employee’s strengths and weakness which will enable them to increase employee efficiency in their work. Different employees will offer different skills and different abilities although some might not be used to that time unless they are first identified. The company should make a list of the employee’s strengths and weakness and ensure that each employee is assigned duties at the best station that suits them. Best managers will place employees on positions which they can build on their strengths and make the company successful. Through realizing the strengths of the employee, managers will ensure that they are working at their level best for them to receive the reward at the end setting high performance (Gerhart & Fang, 2014).

Instead of the company focusing on giving bonuses to employees who have performed better, they should consider introducing incentives while still retaining those who have underperformed. On the integration of pay rise, the company should also consider broadening the pay structure that will cover all the employees whether they have performed better or not. The pay structures should also be more flexible and enable the manager to cut pay whenever the employees underperform from their previous performance. The most important goal of rewarding the employees is to ensure even though some of the employees are rewarded the company still focuses on teamwork and togetherness in performing different tasks. The other essential attribute of employees rewarding is the dilemma of making the employees understands that improved performance will always lead to increased pay (Gerhart & Fang, 2014).  Challenges of employee reward might crop up when certain employees have reached the peak of their production and still want to be rewarded. The company should focus on recognizing them not only through pay rise but also offering them with management roles which will keep them more relevant to the business. The other challenge will relate to retaining consistency by the company to provide rewards to their employees which could be solved through making their reward program flexible and cater for every employee in the business.


Armstrong, M., & Taylor, S. (2014). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.

Cascio, W. (2018). Managing human resources. McGraw-Hill Education.

Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.

Gerhart, B., & Fang, M. (2014). Pay for (individual) performance: Issues, claims, evidence and the role of sorting effects. Human Resource Management Review24(1), 41-52.

Hameed, A., Ramzan, M., & Zubair, H. M. K. (2014). Impact of compensation on employee performance (empirical evidence from banking sector of Pakistan). International Journal of Business and Social Science5(2).

Noe, R. A., Wilk, S. L., Mullen, E. J., & Wanek, J. E. (2014). Employee Development: Issues in Construct Definition and Investigation ofAntecedents. Improving Training Effectiveness in WorkOrganizations, ed. JK Ford, SWJ Kozlowski, K. Kraiger, E. Salas, and MS Teachout (Mahwah, NJ: Lawrence Erlbaum, 1997), 153-189.

Redman, T., & Wilkinson, A. (2006). Contemporary human resource management: text and cases. Pearson Education.

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., … & Plimmer, G. (2015). Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.

Place this order or similar order and get an amazing discount. USE Discount code “GWEXDDSRGCF10” for 10% discount