Question
Your briefing paper must include:
- An assessment of industrial trends and sector profiles linked to common reward packages and levels of business activity relating to the context of reward environment within Home International (2.1).
- An evaluation of how unemployment and payroll data can be used by Home International to develop insight into benchmarking reward data (2.2).
- An example of a reward package that you have created for Home International. This should include:
- An appropriate reward package supported with benchmarking data
- A job evaluation scheme
- The market rates relevant to the roles within Home International (2.3).
- An explanation as to the legal requirements in relation to minimum pay and working hours that might impact Home International’s reward practice (2.4).
Solution
Task 2: Briefing Paper to Inform Future Reward Approaches at Home International
2.1 Industrial trends and sector profiles-common reward packages and levels of business activity in reward environment within Home International
Through an evaluation of reward management, CIPD (2021) identify the reward environment as existence of factors influencing rewards offered. For Home International organisation, the employee’s commitment and motivation is impacted which could be due to the rewards issued. To evaluate the trends and sector profiles, environment analysis is important. This is to establish the most appropriate strategic rewards for Home International organisation operations.
Internal Environment Analysis
To identify the internal environment trends, SWOT analysis is applicable. In CIPD (2021a) factsheet, SWOT analysis is identified as inclusive of strengths, weaknesses, opportunities and threats. These are found matching organisation goals, strategies and capacity of establishing most successful business environment.
The SWOT analysis is as summarised in table 1;
Table 1: Home International Organisation SWOT Analysis
External Analysis
Further, to identify the trends impacting Home International organisation reward environment, PESTLE analysis can similarly be adopted. This is a tool used in evaluating external factors impacting an entity. According to CIPD (2021b), PESTLE analysis ensures that appropriate decisions are made which are directly influenced by the external environment (see figure 1);
Figure 1: Home International PESTLE Analysis
In summary of the trends, considering the SWOT analysis, it evidences that the identified internal factors directly influence the organisation management strategies. This is in regard to the rewards which are offered, culture of Home international, leadership and management implemented and the hierarchical structure in operations.
For the external factor’s trends, as illustrated in the PESTLE analysis, they directly impact on the scope of competition, economic success in the technologies integration for an entity and various legislations to regulate these rewards. Additionally, increasing the scope of innovativeness and technologies for an organisation evidence appropriateness of positioning in the business environment and change embrace with performance improved. This means that the reward strategy is impacted directly by innovation embrace and ability of the employees in implementing their roles.
2.2 Unemployment and Payroll Data used by Home International to develop insight into benchmarking reward data
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