Offering rewards to hard-working employees is one of the most effective ways to boost morale in the workplace. They provide both encouragement and recognition that can keep employees happy and increase workplace engagement. In an increasingly competitive market, reward systems can also help organisations to differentiate themselves from their competitors in the hunt for top-quality staff.

Elaborate the definition of reward system, identify categories of rewards systems, types of rewards system, and the benefits of rewards system. Explain your answer with supporting examples.