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This article examines some of the recent innovations in rewarding employees arising from the changing needs of organisations in a competitive global economy. The necessity for reward strategy to be congruent with business objectives and the consequent movement towards greater flexibility and variability are considered together with the important and growing concept of broad‐banded basic pay systems. A case study is described of a multinational pharmaceutical company which has travelled down some of these routes, changing from a centralised and over‐rigid pay control system to one that more closely meets the requirement of the European marketplace.

Changing the way that career and salary progression decisions are made can be highly emotive. Chris Riley, head of HR at the National Crime Squad, explains how communication and feedback helped the organization implement a competency‐based pay structure that also rewards exceptional performers.

This paper delineates the current “disconnect” between traditional models of executive compensation and Bartlett and Ghoshal's model of a transnational strategy, and proposes a new model of global compensation based on the three managerial roles (operational entrepreneur, managerial developer and top level leader) outlined by Bartlett and Ghoshal in their model. The proposed model focuses on pay emphases in the areas of experiences (inputs), activities (processes) and rewards (outputs) in a global context, and the three global integrative pay configurations derived from the model are presented and discussed. The paper concludes with the presentation of three caveats related to further developments in the area of global pay and firm control.

The purpose of this paper is to explore the effects of different reward programs on in‐role and extra‐role behaviour; and to investigate whether specific reward programs can be designed to enhance both in‐role and extra‐role behaviour simultaneously.

Semi‐structured in‐depth interviews were conducted on a total of 11 employees from four different fashion retail outlets. Informants consisted of employees from different positions within these organizations (i.e. store manager, assistant store manager and sales associates) to provide researchers with possibly differing viewpoints. Interviews were content analysed and classified, according to emerging themes.

Certain reward programs, namely individual and group financial incentives motivated sales associates to engage in both in‐role and extra‐role behaviour simultaneously. Further, compared to formal recognition programs, informal reward programs (individual financial incentives, individual social recognition and group social recognition) appeared to be more effective in motivating sales associates to enhance their in‐role and extra‐role performance.

This paper contributes to a better understanding of the effects of different reward programs and their administration on in‐role and extra‐role performance of retail sales associates.

One major purpose of performance appraisals is to determine individual merit, especially where pay for performance systems are employed. Based upon expectancy theory, high performance ratings should entail high merit increases while low performance ratings result in low merit increases. However, it appears that decoupling performance ratings and merit increases is a common practice, as evident from a survey that was administered to knowledge workers at multiple sites in Pittsburgh, Pennsylvania, USA. Human capital themes that appeared to be fair and/or equitable among the sampled knowledge workers, using a grounded theory approach, included the following collective concepts: marginal, actual performance, good reviews associated with good raises, nice raises, management's reviews are partly or mostly objective, employee intrinsic motivation, attitude, years of service, and appropriate education level. Negative aspects of the performance/reward systems were also explored. Associated training suggestions included constant attention by management that keeps the coupling of performance evaluations and motivational/incentive pay systems alive and well, as well as a system to track corporate goals that allow management to compare training, performance metrics, employee retention, and other data with company‐wide goals and employees’ expectations.

The purpose of this paper is to explore how total rewards might influence intention to stay among employees of private sector banks in India. A moderated-mediation mechanism is hypothesized, in which a system of total rewards leads to intention to stay via engagement and organizational justice (OJ) moderates the linkage of total rewards with engagement.

Perception of employees about the constructs considered has been assessed by a survey, using a structured questionnaire. Employees of private banks located in the State of Uttar Pradesh were the population for this study. A total of 17 branches of 7 private banks were covered, and the number of valid responses was 761. Hypotheses testing has been done with SPSS PROCESS command.

Hypotheses proposing mediation (engagement as mediator between total rewards and intention to stay), moderation (OJ as moderator between total rewards and engagement) and moderated mediation have found support.

Results obtained direct us to infer that in addition to the amount or value of any reward, aspects of OJ, such as equity and fairness in allocation of such reward and transparency in the procedure followed, are likely to influence the effectiveness of total rewards practices in engaging employees and motivating them to stay with their present employer.

This study adds to total rewards literature by highlighting how a total rewards system can lead to engagement, and consequently to employees’ intention to stay. Results establish OJ as an important attribute to any total rewards package to make the latter more valuable and effective.

The purpose of this paper is to investigate the relationship between human resource management (HRM) practices and workers' overall job satisfaction and their satisfaction with pay.

The paper uses British data from two different cross‐sectional datasets. It estimates probit models with overall job satisfaction and satisfaction with pay as subjective dependent variables.

After controlling for personal, job and firm characteristics, it is found that several HRM practices raise workers' overall job satisfaction and their satisfaction with pay. However, these effects are only significant for non‐union members. Satisfaction with pay is higher where performance‐related pay and seniority‐based reward systems are in place. A pay structure that is perceived to be unequal is associated with a substantial reduction in both non‐union members' overall job satisfaction and their satisfaction with pay. Although HRM practices can raise workers' job satisfaction, if workplace pay inequality widens as a consequence then non‐union members may experience reduced job satisfaction.

The data sets used in the analysis are cross‐sectional, presenting a snapshot of impacts of HRM practices on job satisfaction at a particular point in time. Dynamic effects are therefore not captured.

The paper adds to the empirical literature on effects of HRM practices, focussing on impacts on both overall job satisfaction and satisfaction with pay. A novel feature of the paper is the use of two separate data sets to develop complementary empirical results.

Managerial motivation depends, in part, on the perceived value or attractiveness of the rewards offered to the manager. This perception‐based study provides empirical evidence of the associations between motivation and performance, and valued rewards. Generally, for this sample of 225 middle‐level managers, intrinsic rewards are more highly valued than extrinsic but higher motivation and performance is positively associated with a preference for a combination of rewards. Preference patterns by stage of career, position in the hierarchy or functional area are not detected. Whilst valued rewards appear to have an influence on motivation and performance, particularly when applied in combination, the determinants of preferences appear to be diverse.

Describes how a fair and transparent reward system based on performance is giving greater control over outcomes, retaining the best staff for the future and saving money.

Explains that the new performance development review (PDR) system has been delivered as part of the award‐winning Excellence in People Management project, which has modernized and refocused people‐management practice at Birmingham City Council, UK.

Reveals that the PDR process has given Birmingham City Council the ability to manage effective performance and behaviors and link pay progression to performance rather than time served.

Details how managers now have the tools to manage their own staff more effectively.

Shows that the PDR has shifted the performance focus more toward how employees contribute to achieving effective outcomes for the citizens of Birmingham and the behaviors employees need to demonstrate.

Explains that staff that feel valued and rewarded, are more committed and motivated, and are more willing to go the extra mile. Increased productivity and performance, combined with the abolition of incremental pay increases, has realized a saving of around £6m so far.

The research aims to explore the relationship between money attitudes and pay satisfaction for individuals in low paid jobs.

The methodology developed a questionnaire that contained three key measures, including money attitudes, pay satisfaction and income level. The sample for this study consisted of blue‐collar workers from industries and occupations identified as low paid by The National Minimum Wage Commission in the UK. The questionnaire was distributed in East London and South East England through employment exchanges and community organisations.

Individual differences in money attitudes was found to be a significant variable in explaining pay satisfaction of people in low pay. The evidence proposes a case for money attitudes to be incorporated in the traditional models of pay satisfaction as it provides for the idiosyncrasies in individual differences.

A major limitation of this study was that it only captured certain low paid occupations, and also that it was based in the UK. This must be the most important direction for future research.

The findings have managerial important implications in designing pay and reward structures for people in low pay.

One of the major contributions of this study is that it is an early example of an empirical study, hopefully to be followed by more on money attitudes and the satisfaction of low pay.