Reward management refers to a company's overall strategy for its payment and reward system for its employees. Rewards from a company can be both monetary and non-monetary. A properly implemented reward management system is generally an important factor in the recruitment and retaining of talented employees.
Reward management can encompass salary, bonus pay, benefits, and performance management. A clear reward system within a company also can help motivate existing employees to improve their performance. Positive recognition for their work can help improve both performance and morale in employees, leading to higher productivity. Reward policies also should be clearly communicated to employees to ensure they are understood and implemented.