The strategic importance of strategic HRM ; How Sri Lankan Organizations Enriching Employee reward management and employment relations
Introduction
In the context of Strategic Human Resource Management in related to Reward management includes developing employee financial wellness programs, reducing stress related productivity losses and enhancing workforce engagement. Further adopting financial well being in to HR strategies such as offering financial literacy training, counselling and tailored benefits so organisations can improve employee performance (Kim, J., Garman, E. and Sorhaindo, B., 2003) where it creates a well balance working culture leading to strong employment relation.
Employee Reward Management and Employment Relations
Organizations can improve employee performance, retention, and overall organizational success. Specially by creating sensible benefit and wage structures that appropriately acknowledge and compensate workers for their contributions would encourage financial wellness .This provides a sense of security and guarantees the financial stability of all employees and aligns human resource practices with broader business objectives ensuring a resilient and high performing workforce (Frank-Miller E G , et ek., 2019)
Figure 02 Source - https://blog.empuls.io/importance-of-employee-rewards-and-recognition/
Sri Lankan organizations in context of SHRM
The Government of Sri Lanka has established social security programs like the ETF and EPF to ensure employees financial security on retirement. The ETF, created in 1981, requires employers to contribute 3% of employees' earnings. Additionally Sri Lankan non-government companies also considered the importance of employee financial wellness In Sri Lanka, financial literacy stands at a(Sasanthi F, 2024 )proximately 35%, indicating a significant gap. Addressing this putting SHRM to practice as Dialog Axiata PLC launched a program providing financial literacy training to employees focusing on financial education.
Figure 01 Source - https://creative.knittingindustry.com/mas-holdings-announces-company-wide-sustainability-strategy/
MAS Holdings has launched the "Life Matters" program, a comprehensive flagship sustainability initiative aimed at enhancing the well-being of its employees. This program goes beyond just financial support; it provides extensive financial literacy training, equipping employees with the knowledge and skills necessary to make informed financial decisions(MAS Holdings, 2021). Further more initiative taken to focuses on career development programs designed to empower employees to grow professionally and advance within the company to improving financial awareness .
Conclusion
Employee Reward Management involves designing and implementing systems to reward employees for their contributions to the organization in both financial rewards and non-financial rewards.
n Sri Lanka, companies are increasingly adopting employee reward management strategies to stay competitive and attract top talent
Reference
Kim, J., Garman, E. & Sorhaindo, B., 2003. Relationship Among Credit Counseling Clients' Financial Wellbeing, Financial Behaviors, Financial Stressor Events, and Health. Association for Financial Counseling and Planning Education [Online]. Available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2265623 [ Accessed on 08th March 2025].
Frank-Miller E, G., Despard, M,. Grinstein-Weiss, M. and Covington, M. (2019) Journal of Workplace Behavioral Health34(4):1-24. [Online]. Available at https://www.researchgate.net/publication/333881015_Financial_wellness_programs_in_the_workplace_Employer_motivations_and_experiences [ Accessed on 08th March 2025].
Buzzao, G,. Rizzi F,. Who is CSR for in employer branding? Insights on employer branding strategies across industries, educational backgrounds and career styles,. Wiley Online library . [Online]. Available at https://onlinelibrary.wiley.com/doi/10.1002/csr.2616 [ Accessed on 08th March 2025].
Well said! Integrating financial wellness into HR strategies is a game changer for both employees and organizations. When companies provide financial literacy training and fair compensation structures, they not only reduce stress-related productivity losses but also foster a more engaged and resilient workforce. A well balanced working culture leads to stronger employment relations and long-term success!
ReplyDeleteEmployees rewards is given high contribution to attacct current employees as same as New employees. Performance allowances is directly affected to productivity and efficiency.annaul family trips and bonus are enhanced work and family life balance of the employees.
ReplyDeleteThe discussion demonstrates how strategic SHRM stands in modern business operations. Organizations throughout Sri Lanka continue creating new employee reward management system and bolster their employment relationships.The success of organizations depends on the integration of SHRM with strategic employment relation and reward management frameworks.
ReplyDeleteVery insightful post and in my view the integration of SHRM practices and organisation's strategies it gain a competitive advantage as well as they can retain a satisfied employees in the company. This will help to develop a competitive workforce that can challenge for globally.
ReplyDeleteGreat insights on integrating financial wellness into SHRM! Supporting employees with financial literacy and tailored benefits can boost performance and retention. A smart strategy for long-term success! I agree, prioritizing employee well-being strengthens both workforce stability and business growth.
ReplyDeleteIt's good to see that the approaches to enhance the financial literacy of employees since that literacy is less among srinlankan employees and it will help them to understand how to manage their income effectively
ReplyDeleteThis is a crucial aspect of modern HR practices. Most of Sri Lankan employee's finance literacy level is very less. It is great to see that Sri Lankan entities embracing this strategy to a develop their workforce.
ReplyDeleteA clear explanation of HRM's strategic role in organizational performance! The emphasis on connecting HR strategies with business goals shows HR's growing position as a growth driver. Professionals seeking to boost employee productivity and engagement can benefit from this article.
ReplyDeleteWell explained.There is a significant positive relationship between rewards and employee working efficiency.
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ReplyDeleteAxiata PLC and MAS Holdings are setting a great example by prioritizing employee well-being through financial literacy and career development programs. These initiatives not only enhance employees' financial knowledge but also contribute to their professional growth, creating a supportive and rewarding work environment.
ReplyDeleteIt’s very proud to be witnessed that Sri Lankan companies also practicing the globally accepted methodologies in connection with the employee reward management & employment relations. Moreover, it’s very commendable to witness that some blue-chip companies are much focused on their employees’ well being than only focusing on profits. These methodologies should be generalized and have to be put into usage by all organizations irrespective of being private sector or government.
ReplyDeleteA key focus area is employee reward management, where Sri Lankan firms are moving beyond traditional compensation models to incorporate performance-based incentives, recognition programs, and non-monetary benefits such as flexible work arrangements and career development opportunities. Additionally, employment relations are being strengthened through transparent communication, and inclusive workplace policies, fostering trust and collaboration.
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