What is compensation and reward system in hrm

Matching the reward system with the level of performance for each job assigned in organization is known as reward management.
To make effective reward management, an organization has to prepare an appropriate reward system.
Attractive and transparent reward system must have quality to motivate and empower the dedicated and reliable employees.

An employee reward system is a motivation tactic organizations use to help their staff feel encouraged to complete high-quality work.
It's different from an incentive program because incentives are goal oriented and combined with a reward.
A reward is for the team members who complete exceptional work or are a great asset to a team.

Compensation in HRM refers to all the monetary and non-monetary rewards an organisation provides to its employees in exchange for their work.
This can include:

Compensation management is creating and administering compensation programs that enable an organisation to attract, motivate, retain, and engage employees.
It encompasses financial and non-financial rewards that employees receive in exchange for their contributions to the organisation.