Introduction
Employee reward or Reward management is one of the main pillars for supporting the employment relationship. Employee reward is also defined as financial returns and benefits which employees receive for their work. It is a program that connects formulations and implementation of policies that has the main aim to give value to the overall organization. Reward management controls factors that determine an employee’s remuneration as well as other benefits. This report will focus on the reward structure of the Uber Company. Uber has made the different reward structure for their employees and pay and benefits are given to them according to their work performance, experience, etc. The rewards to workers are differentiated between extrinsic and intrinsic rewards. Extrinsic reward includes salary, incentives and additional benefits to them. Intrinsic reward includes the environmental reward and development-oriented reward. Rewards are provided to employees to satisfy their higher needs. (Chandrasekar, 2011). In an organization, the objective of reward management is done to support the organization’s strategy and motive employees to perform better at work. A company frames it rewards policies and structures to fulfill the needs and satisfy them. Reward management aligns with the needs of the employee which are accepted by a business for a good environment and that should lead to good quality of salaries.
Uber is one of the multinational transportation network companies that offer food delivery, peer to peer ride sharing as well as a bicycle sharing system. The company is famous for its operations and create a well-structured design system of evaluations and rewards. Company has adopted effective strategies to evaluate the reward benefits for their employees by implementing the fair compensation system. The rewards and pay in Uber Company are different for all the employees because of the difference in status, ages and performance of employees as in Uber company performance is the major concern for the reward system (Pal, 2015). This report focuses on the reward system of Uber Company with the main focus on outlined structures to the transactional relationship of the rewards.
Uber Company
Uber is a transportation network company which offers various services to its customers and have attained a good reputation from their employees over many years. Uber networks provide the cab facility to people for commuting from one place to another. The rise of smartphones, as well as the desire for on-demand work, is acting as a catalyst for Uber’s growth and the creation of entirely new standards of consumer experiences. Building an effective platform that has the willingness to challenge, reinvent and sometimes disrupt ourselves is becoming different once again with its goodwill in the market. Uber was founded in the year 2009 as UberCab by Garrett Camp, a computer programmer and co-founder of Stumble Upon who sold his Red Swoosh start up in 2007 (Khosrowshah, 2019).
The main mission of Uber is to ignite opportunity by setting the world in motion. There are direct parallels that combine various opportunities to bring transportation for all individuals at the best prices. The rise of smartphones and the desire for on-demand work is charged with the convenience of facilities to consumers. Various strategies were centred on group control and paired with representatives to develop their main shortcomings and strengths of their exhibitions (Uber, 2019).
The major strength of Uber is its continued success that has worked so hard to build their competitiveness in the market. Uber network provides the cab facility to customers and it represented the company as one of the largest platforms for commuting. Uber’s main focus is to build customer relationships and improve the limits of the entire workforce to provide incentives based on the reward management system. Their main aim is to provide safety to customers and provide the facility to hire cab 24*7. The first things they want from their employees are to respect and greed the customers and provide the best services to their customers and core value is to build globally, doing the right things and celebrate the differences. (Uber, 2019).
Uber has created a platform for their employees to build and provide the best services to their customers and it will help the employees in growth and development. Uber has created success by implementing the effective services and facilities for their reward. They had implemented the reward structure which includes the pay policies and practices, minimum wage, and fair salary are given to employees according to their performance (Uber, 2019).
Environmental change or Organisational strategy
Uber organization has splendidly interfaces in its transportation business with its various innovations and ride-sharing applications in the overall structure of the company. The internal analysis of Uber focuses on the mission to provide transportation globally. The strategic objective of the company is to comply with its growth factor and global expansion in its internal structure (Uber Investor, 2019).
Earlier, Uber Company has implemented the brand positioning strategy that has a focus on the democratization of luxuries but along with brand positioning, it is necessary to adopt the strategies to satisfy the employees and customers. As the employees play a major role in the success of the company and the employee expectations always change with the environment and generation, technology, demographics, and flexible change. The various reward strategies help in achieving a more required task that benefits the employees to provide bonus and encourages employee loyalty.
Uber is the biggest transportation company that provides many services to a national and regional level. The status of the people results in their performances and their knowledge basis skills in the formations of their lifestyle. A differential in the wage system may arise because of the unique skills and abilities of jobs. Employees are the real asset of every company where they contribute their time and increase their knowledge which contributes to organizations (Dickey, 2019).
Area of Employment and Differences in Pay
In Uber, the area of employment for employees is to drive the cabs in their area and they have to register themselves by providing all the details to become a part of the company. They are hired based on their experience and their driving skills along with that education and background check has been done to fit for the job. Reward management is decided based on their experience in driving and their earlier experience. Education background is the biggest factor where employees from different backgrounds will be paid differently. Different streams will have diversifications and top-level management or HR department analyses the concept of paying wages to employees. Uber classifies all its drivers and put them as outside premium in actual wages legislations and there is more dictation in their working patterns that raises its commissions while cutting the rates in their system (Lawrence, 2016). (Osborne, 2016)
In Uber Company, employees are the priority for them to satisfy and this leads to the completion of targets with the achievement of goals. Employees with experience will surely get high wages and incentives as they are working in the company for a long period. People from different backgrounds will get less pay as they need to be taught with all the concepts. The area of employment depends upon the organizational strategy and different structural pay with the main area of employment (Butler, 2016).
In Uber, a fair compensation system is implemented as it helps the management in complying with the various labor acts and also encourages the employees to perform better and achieve the standards. Targets are given to employees to complete in a month to get the fixed salary and the rewards are decided based on their performance as the performance is analyzed by the customer’s review on each ride.
The company provides the targets to drivers or employees so that they can sustain themselves in the company for a longer period. The targets should be cleared and communicated in the best practices and reasonable in the understanding of the employees in an organization that is designed by top level management in the Uber Company. The strategy of the business is to motivate the employees to perform better as motivation is the biggest and important factor that builds and helps the company to achieve its goals and objectives (Uber, 2018). The application capability has fairness in evaluating the concepts in distributive and procedural justice way. Equity theory in business helps in formulating fair practices in the working environment and this helps to grow employees positively with fair remuneration.
Incentives which are provided to employees are on the basis employee performance and it motivates employees to perform better. Every employee should be influenced by the practice management and can adopt new techniques to achieve growth and targets of the company as a whole. The formulation of strategies helps management in analyzing the best solution for achieving the objectives and vision. (Uber for Business, 2019).
Pay differences between Uber Employees
The research comes along with the various authors that pay equity is the biggest concern for all the organizations. The existence comes along in the private and public sectors as they face pressure to report on salary equity at the public findings. Pay equity is relatable to transactional rewards of the company in financial returns and helps to retain all its employees. The effective rational awards classified are mainly concerned with the experience and capability of a person as learning and development that relates to the psychological well-being of the workforce (Joshi, 2016)
The internal capabilities are used to create valuable, uniqueness and organized for expanding its global experience in the developing countries. The internal capabilities have a low-cost business model. Training and development programs are conducted for employees to enhance their skills to perform better and communicate with customers to get the positive rating form customers as it will help in improving their performance while calculating their remunerations by management. (SCHEIBER, 2017).
Fixed Price Incentive Awards
The reward is the structural framework that is designed for every business to incorporate its fixed value for motivating the employees. Rewards should include promotional benefits for employees and must be implemented in various situations that apply changes to all its systems and provide benefits to experienced employees (Musgrove, 2011).
Uber values its customers as well as their employees as for customers they provide the personalized transportation facility which is easily accessible for everyone. Uber is a combination of a two-sided platform that connects most of the people who needs a ride and helps people in every situation.
With the two-sided platform, it managed to grow its network by different subsidizing activities as a side market that is more sensitive to the price paid by drivers. Uber provides network growth to the riders which are charged fully prices by their all customers. The use of surge pricing strategies with its effective management system tells about the demand and supply of all their consumers (Cohen & Zhang, 2016).
Conceptual Apparatus
The conceptual framework of reward management recognizes that it must be strategic and address with long term issues as to how people should be valued and what is to be achieved. An integration of reward theories in business helps in making labor markets, development of employees and commitments to employees. Efficiency wage theory helps the business in analysing the pay for employees and as a high level of productivity increases the potential and attracts better candidates in Uber. The agency theory tells about the concept that owners of the firm are always separated from the employees. The differences always create agency costs because the agents are more productive as principals (NSCPO, 2019).
In Uber, the significance of theory is to analyze the process for incentive alignment for paying measurable results. Uber aims to strike the main relationship as reasonable contributions to offer and elicit those contributions. The basic pay is the amount of pay that contributes to the actual rates of job. Base pay will be influenced by measuring the form of job evaluations. Uber manages to reward high-performance drivers while providing better earnings with the introduction of Uber Pro app which is divided into four categories as platinum, partner, gold, and diamond. To gain overall status, they must earn points on every trip during their fixed periods of three months. Rewards include cash back on their fuel purchases, free 24/7 roadside assistance to all their customers (Hawkins, 2018).
The pay for Uber employees is different for each employee as it also depends on the area where the employees are placed to do their job and at what time they are working. Uber provides more facilities to employees who work in the night shift. A company must adopt the effective reward system which must be linked with the performance development systems as it focuses on the pay based on performance and provides the learning opportunities for employees along with the work environment. They have made the strategies by entering in the concrete goals that are been accessed by employees and accountable to hold each other (Dickey, 2017).
Organization Target Fixed price incentives
Every organization needs to establish its concern regarding traditional, knowledge bases and contingent reward structure in the organization. Wages and salary remuneration depend upon the person’s capability and how he has experienced the most in his life structure. The second one is the fixed price contract which has two forms, the one is most used of different reward program and the second one is supporting the competitive strategy of the firm. The reward structure is designed to form the project base issues that include target cost, profits, profit ceiling, pension schemes, and non-cash incentives.
Uber uses to negotiate these entire rewards structure program that enables to negotiate these all the rewards with the outset of the new implementation of the strategy. The value roof is the most extreme sum that is contractual to attain the work to be done. There is an agreement that results in the modification of the internal structure and increases fixed value impetus contracts. Uber used to adapt innovation with its latest technology but sometimes it may lead to the wrong perception with the views to be adapted. Boost is the new incentive plan that multiplies fare of a trip by a fixed amount within a specified hotspot during their specified times. The implementation of the strategies, remuneration policies should be designed to manage the risk and promotes sustainability for a long period (Uber, 2019).
Uber uses its innovative practice and makes it unique with concepts that provide many ideas to acknowledge person capabilities. The program includes different types of programs that have thresholds for more Uber cash rewards than other potential rewards. But when they are implemented in the scenario, the problem framing results in more level quantifying points and they are earned concurrently. Uber manages risk and promotes its sustainability; competency-based pay with various schemes to people with all its non-cash incentives and motivates employees to perform in a better way. The differences come with the potential of the employee in the internal organization and how he reacts to particular situations. Uber uses its technology and do not motivates its employees and make changes with its pension schemes, employee sharing schemes and acquire more qualified person and provide them fewer incentives and perks in their formations (Uber, 2016).
Hence, Uber should provide various new techniques and manage its pay structures of different skilled employees. The employees of the company will are more satisfied and that’s results in increasing the efficiency and productivity at all the levels of the operation structure of the company.
Differences in Pay between Employees
In Uber Company, employees are paid differently as the structure of their salary. The difference in pay is because of the capability of a person. This is a portion of the traded on an open market organization are confronting strain to give an account of compensation value at the investor meeting and open discoveries (Noe, 2017).
Such pay values can be identified with the value-based just as a social reward, the value-based is the reward which is of budgetary and aids in holding the representatives in the organization. A reasonable reward can be characterized as the reward which is predominantly worried about the work understanding of the representative just as learning and improvement. These two sorts of rewards help the organization in keeping up the workers for a long period in the Uber Company. There is a gathering of two new pay laws and investor creativities are raising the risks for enterprises that have not seen at the issue by any stretch of the imagination (Perkins, et al., 2016).
The reward program and the whole system take its initiative to play a vital role in motivating all its employees of the company. Rewards in the business are the bonuses that motivate employees and they bear with motivating factors with the salaries they get for their work they did the role of HR in the workplace or any organization is to pay compensation and eliminates the discriminatory policies which are defined as making the effective and easiest right offer. Monitor all the values that may increase and consider all the audit structure of the whole internal as well as external structures (TOGY, 2019).
Reward System in International Context
Uber is the biggest company with a different rewards system in the national as well as in international context. Creating universal portability of representatives keeps on being basic for associations that work crosswise over the outskirts. When overseeing universal reward, it’s imperative to strike a harmony between making a task appealing and getting a suitable profit for the expense of sending a worker to work abroad (CIPD, 2019).
Uber uses effective strategies and fairly treat their employees and provide them with the best environment that must be suitable for their workings. Notwithstanding, representatives ought to likewise be helped to remember the impressive advantages of a worldwide task as far as their self-awareness, vocation prospects and improvement of their insight and skills. Uber maintains their reward system and provides best incentive practices to its employees on an international level also (Perkins et al., 2016).
Issues in Reward Management
Reward management comes with various problems that affect the overall structure of the business. There has been a continuation of the size of the economy and view of the people as their reflected services. It became obvious that internal organization takes beneficial and necessary steps to provide rewards to their employees in the best way. As reward management is all about designing and evaluating reward process which improves the performance of the Uber Company and achieves their objectives. Employees roam from one place to another even they are stuck in any situation, and sometimes top-level management does not take proper steps to appraise the employees and they feel demotivated with their part of the act. The company should implement the focus performance rewards structure program to improve the performance of employees. The adoption of greater creativity and sensitivity practices will help in the motivation of the employees.
Conclusions
The report focuses on the concept of reward structured which is followed by Uber Company and their main relationship between its strategy formulations and adopted systems in the reward management. The conceptual apparatus that regards to economic theories, internal labor market and different theories of rewards with its pay determinations. Uber uses its motivating factors to retain its employees but with the lack of internal structures and equity, constraints are to be considered. The expatriate rewards which are used in the international context have the main aim in all its private and public sectors. In last, there is a discussion about the issues which are faced by Uber Company in its rewards management structures.
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