ABSTRACT
Rewarding people remains a key task for HR managers. A fair and equitable remuneration (reward fairness) remains imperative for the success of a business organisation. Reward management distinguishes between wages and salaries. Six basic forms of rewards have been highlighted: time- and result-based systems, enterprise-based systems, performance-related, skill-based, and knowledge-based systems and flexible benefit plans as well as the link between rewards and motivation (e.g. positive and negative reinforcement and punishment). Inevitably, rewards are also linked to job structures and they are related to motivation. This is known as monetary reward system. An ongoing debate on rewards and motivation has been the remuneration of CEOs; on the other end of the reward spectrum are debates on the minimum wage. One way to avoid drifting towards the minimum wage has been collective bargaining between trade unions and management or employers. As a consequence, key elements of wage negotiations are explained in this chapter. This includes a five-step bargaining and negotiation process that assists HR managers in achieving positive organisational outcomes for both workers and employers.
