An Investigation into Alternative Rewards. Are they recognised by employees as a reward and if so do employees value them?

Up until the current economic recession, employees at SIG Ireland were accustomed to a very generous reward strategy. However, there has been a pay freeze for the last 2 years; there are no bonuses being paid and very few promotions. This is largely due to the downturn in the construction industry which SIG Ireland are dependent on. Many employees are working as hard, if not harder than before, for less pay. Employees are de-motivated and concerned for the future of the organisation. It is important to look at how management are rewarding employees and how the process can be improved or modified to include alternative rewards. Organisations often say that their employees are their most important asset; therefore it would seem appropriate that they would take care of them like they would care for any other important asset. On the other hand does it make sense to spend large amounts of money on an asset if it is not needed or if it is not making improvements to the asset? In order to maintain or even promote employee engagement, the organisation needs to be more creative about how they reward their employee's performance and this does not necessarily have to mean more pay. It is important that organisations still show their employees that they and their work is valued by the organisation, but can this be done without using financial rewards? When the economy starts to emerge from the recession, it is vital that management prepare for recovery by having a reward strategy in place to avoid losing key employees. In the current economic climate it is vital that the high performing employees feel valued but it is also important that employers get value for money. It is therefore necessary to look at how the current reward system influences employee performance or in other words motivates them. The aim of this research is to understand what will motivate employees in the absence of financial rewards. As organisations in the recent past have used financial rewards to motivate employees, now that this practice may be no longer possible, the research is investigating whether alternative rewards have been offered to employees as a substitute to financial rewards. This will also test if employees recognise alternative rewards or if they do recognise them do they see them as being of any value to them