Question 1 (AC 1.4) effectiveness of the organisation’s reward strategy and recommendations

Solution

7HR03 Strategic reward management

Question 1 (AC 1.4) Critically evaluate the effectiveness of the organisation’s reward strategy recommending how this might be revised to more effectively attract and retain employees.

Question 1 (AC 1.4) -1,012 Words

The Reward Strategy of Riyard Air

Riyadh Air’s reward strategy involves competitive compensation, performance-based incentives and comprehensive benefits to attract and retain talent (Riyadh Air, 2025). It blends fixed pay structures with variable bonuses to ensure that employee performance aligns with the goals of the organisation. In addition, the airline provides allowances, travel benefits and career development opportunities. Examples of non-financial rewards include recognition programs, flexible work arrangements and employee wellbeing initiatives. The purpose of this strategy is to increase employees’ engagement, motivation, and job satisfaction (CIPD, 2024). From the reviews available of literature, there is a direct relationship of the reward strategy offered by an organisation. In particular, by offering total rewards, the employees are touched in all angles hence increasing their performance as their employees feel facilitated and supported.

Evaluating the Effectiveness of Riyard Air’s Reward Strategy

There are several ways in which Riyadh Air’s reward strategy is effective. Because of the competitive salary structure, employees are rewarded appropriately, and turnover decreases as job satisfaction increases (Korneeva et al., 2021). In the aviation industry, where talent shortages can arise, competitive pay is a key driver of retention. Moreover, the performance-based incentives motivate high performance culture through rewarding of employees for achieving and exceeding targets (Gadsden et al., 2021). This approach ties the employees’ efforts towards achieving organisational goals, resulting in higher productivity and employee engagement. Financial incentives such as bonuses also encourage motivation, especially in sales and operational roles (Lin et al., 2022). Travel benefits, which are nonmonetary rewards, are a great retention tool because employees get the chance to have access to unique perks that are sometimes not available in many industries. According to Aschenbrücker & Kretschmer (2022), this contributes to employee feeling of belonging and loyalty to the airline. In addition, career development programs offer structured career paths for employees……

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