Reward

EasyJet is one of the most recognised organisations in the Travel and Tourism industry. That operates in more than 20 U.K airports. With their employees having to working antisocial hours it is important for EasyJet to provide rewards for their employees. Apart from offering equal opportunities and competitive salaries for its employee EasyJet has operated a number of share schemes over the years. The most recent one being “Save As You Earn (SAYE) scheme”. Another reward that EasyJet provides to its staff is “Staff Offer” this means that all EasyJet employees regardless of their job role are entitle to discounts on a range of products and services. The most commonly known reward that EasyJet offer their employees is “Travel discounts” this means that EasyJet employees and their dependent are permitted discounts when they travel with EasyJet. Rewards such as the ones listed above help to motivate and encourage employees to worker. This makes it easier for EasyJet to meet their aims and objective whether it be to provide great customer service or to increase their profits while satisfying their employees needs.  All the rewards that EasyJet offers its employees are fair as it allows the employees to benefit from the company’s success for example; share schemes. Martin et al, 2010 states “a reward system consists of financial rewards and employee benefits, which together comprise total remuneration”. EasyJet has a balance reward system which provides both financial rewards and employee benefits to its employees.

Should chief executives receive large bonuses even if their organisation is underperforming?

For

v  Payment has always been linked to the individual excellence so the top executives may have the knowledge that is required to run a large organisation. The organisations might think it would be better to cut their losses and pay the executives their bonuses. The reason for this is because it would be easier more beneficial and less expensive for the organisation to retain these executives to help rebuild the businesses finances.

v  Providing bonuses to the top executives is one incentive used by organisations to help ensure that they go that extra mile to help the business to recover from and improve its bad performance.

v  The top executives are the ones shouldering most of the burden of making tough decisions so therefore they are entitled to their bonuses. Also if an organisation is doing badly it could be because of factors outside the control of the top executives such as; a recession which means it isn’t the executives fault.

Against

v  Bonuses are a form of reward for doing well so why should chief executives be paid bonuses even though their organisation has underperformed? They should be the last persons to receive bonuses the reason for this is because they are the ones in charge they are responsible for the success of the business. Giving them bonuses even though the business performed badly is the same as rewarding them for doing a bad job which is just unacceptable.

v  Paying bonuses to top executives while their employees are losing their jobs as a result of the business underperforming will create conflict within an organisation. This is because it will caused jealousy among the employees.

v  The organisation just underperform why would you want to pay such large amount to one individual when that money can put to better use like paying the organisation’s deaths. Isn’t this the most logical thing to do?

Conclusion

Let us not forget that rewards are there to help motivate and inspire employees to work hard at the best of their ability. These rewards also need to be fair and ethical.