New and Improved Reward at Work

Determine how innovations in employee benefits can improve the overall competitive 

compensation strategy of the organization. 

The employees' welfare is one of the most important factors in an organization setup because it influences their output. The production system can only be effective when employees are ready and willing to perform their duties appropriately. Even though employees are expected to perform their duties regardless of the kind of treatment they receive from the company, their willingness play a critical role in the productivity of an organization, particularly the quality of goods and services produced. Therefore, it is essential to consider employees' benefits to motivate them and make their service delivery ability more efficient. An organization should develop an innovative employee reward system that would that cant employees' morale and increases their productivity. 

According to Rai et al. (2019), a Right Total Rewards System refers to monetary and nonmonetary based rewards that an individual or organization offers to employees and can ultimately generate better business results. In this case, the business results include improved organization and individual performance, employee loyalty, job satisfaction, and workforce morale. The main challenge for most organizations is to reward their employees for benefiting both the employees and the organization. A total reward program is one of the systems believed to effectively link organization reward to the achievement of its strategic objectives. 

In recent years, human resource professionals have been experimenting with different types of innovative rewards that could be effective in the workplace. Some of the innovative reward systems that have been identified include goal sharing, skill-based pay, and aligning employees' interests with the organization's goals. According to Sukawati (2020), the main innovation in total reward strategies is where business executives and human resources professionals can develop a rewarding system other than standard benefits and compensation programs. With the nature of competition in the business industry the fast-growing innovation, employers are forced to consider these innovative reward systems to maximize employees' productivity at the lowest cost. Even though the total reward program is believed to be effective, it has been associated with many challenges, particularly regarding the implementation of the program. Before embracing the new, a detailed comparison has to be conducted to determine the program's effectiveness compared to an existing reward system. 

An organization's ability to motivate, attract and retain employees will play an integral role when it comes to the implementation of the new program; the organization must come up with a proper design outline and plan of embracing the innovation to maximize its outcome. Once a proper layout has been put in place, an organization can seek ways of implementing various types to find the best matching strategy. Possible rewards include flexible work schedules, pet insurance, childcare facilities, company paid leave, educational benefits, stock purchase options, and many other rewards. These rewards deviate from the current standard rewards system where most employers provide benefits except employees' health benefits, wages, and salaries. By providing a full range of benefits, an organization is set to benefit from both employee's increased productivity and competitiveness; the strategy is likely to give the business competitive advantage since many organizations do not use it. 

Explain how innovative benefits could be tied to specific jobs. 

The business industry is highly diversified; there are different fields within the business sector, with employees having different demands. Several factors are associated with employees' salary and benefits, including the qualification, the type of job, the roles played within an organization, the experiences, and many other related factors. It is also critical that employers are aware of market prices and the prevailing pay rates to remain competitive. Any lack of information concerning these two factors can easily get the business out of the market. The completion is not only about the sales of finished products; it also encompasses the struggle to get qualified employees in the job market. There are many cases where organizations require expertise in a certain field, but they cannot get them; in such a scenario, businesses may end competing for the expert. 

Innovative reward programs can make employees satisfied with their jobs. This will mostly happen when the reward plan fits the employees' work needs. A company can put much effort into rewarding its employees. However, the reward may never impact because it is not aligned with an employee's work ( Bayraktar et al., 2017)). An organization needs to consider employees' work life needs before making decision on the best reward system that will suit them. Factors such as age and gender play a role in determining the most appropriate reward for a given employee. For instance, older employees are more likely to be interested in retirement benefits unlike youths who might not feel the retirement benefit plan. The job type should also be considered when deciding on the appropriate reward system. For instance, workers whose jobs are risky are more likely to go compensation-based benefits as compared to their counterparts. The employees' innovation reward is closely associated with their morale, motivation, and satisfaction. Failure to meet these provisions may mean that the reward system used is not effective. Therefore, organizations should ensure that the innovative reward system used is in line with a specific job; this will allow maximum rewarding of job performance and innovative benefits that match employee's behaviors and general organization requirement. Meeting the employees' benefits needs will benefit the workers and maximize their performance for optimum productivity. 

Critique the effectiveness of equity-based rewards systems versus those with more creative 

approaches. 

With the constantly increasing competition in the business world, many companies seek ways to maneuver through the competitive market. They are looking for ways to improve the quality of their products at the least production cost possible to maximize profit. According to Shields (2020), equity-based rewards systems refers to compensation-based rewards that embrace collaborative efforts and align the interests of the employees, shareholder and company's examples of equity-based reward system include defined contribution plan, stock rewards, employment purchase plan, and stock alternatives. Based on this reward system, companies seek to benefit more from the employees and look forward to benefiting from them. In these cases, organizations reward employees as a way of changing their work habits and behaviors. 

In most cases, equity-based rewards are monetary but can be too costly for the company. The reward system requires the employer to merit pay or salary from the reward system. An equity-based rewards system can take different compensation forms such as retirement plans and stock purchase plans; these plans enable employees to pay pre-tax contributions via salary reduction agreement. The reward system is used as a long term incentive for employees. The equity-based approach creates a platform for an ownership culture where employees develop an interest in factors that enhance business success. Given a more creative approach, an equity-based reward system enables employees to live their lives and do their jobs by providing the reward. Some of the reasons why organizations should consider using the equity-based reward system are as follows. 

The system aligns the employees or management with shareholders, thus making employees develop an interest in the business's general success. The employees will know that they are part of the business work toward increasing business productivity. 

Building motivations among the employees. Since the reward comes as a package, the employees are likely to be more motivated than standard compensation and benefits. 

It gives both the employees and the employers tax advantages; the equity reward enables both employees and employers to benefits from tax incentives, thus making employees feel more motivated. 

Generally, the equity-based reward system is more effective because it gives employees a sense of belonging. In most cases, the employees will feel that they are part of the company, unlike other benefits and compensation. The more the employees feel that they are part of the company, the more likely they are to achieve the organization's goals. 

Discuss the key elements of integrating innovation into a traditional total rewards program. 

Initially, an organization's total rewards were only given to certain professions, and they were limited to a specific area of compensation and benefits. During this period, reward-based practices were based on more generalized formulas serving the entire population of employees within an organization. There was no specific outline for designing salary structures; they were rigged and controlled. Furthermore, the benefit programs were established in a manner that they could serve a homogeneous workforce. However, many things have changed in the todays' business world. With continued technological development and competition in the business industry, numerous changes are being witnessed regarding compensation and benefits to employees. Organizations are coming up with innovative ways of rewarding their employees. The modern reward system is incorporating various elements of innovation into the traditional reward program. Despite the business system's changes, integrating the innovative approach with traditional total reward programs is still critical. Many organizations consider everything that employees view as valuable when designing a reward system ( Santos et al., 2018). Some of the key elements of integrating innovation into a traditional total rewards program are as follows: 

Environment: The environmental factors are equally essential when considering innovation in the compensation and benefits of employees. These factors are likely to affect how an organization offers rewards to its employees. For instance, external environmental factors such as completion and legislation will influence the critical decision as far as innovative reward is concerned. 

Culture: Even though it is an invisible tool, it has a huge influence on the behaviors, attitudes, thoughts, and identity of an organization. It reveals more information about the operation of an organization and why it operates the way it does. 

Attraction: The organization's ability to have employees with the right talent and in the right position is crucial; it not only increases an organization's survival technique but also gives employees more confidence in everything that they are doing. 

Retention: This is an extremely very essential innovative reward element. Organizations can only benefit their hard-earned employees' loyalties if they continue to serve the company; else, the effort shall have been wasted. The organization should have the ability to keep its valuable employees so long as they have mutual benefits. 

Motivation: The organization must keep employees motivated by maintaining their performance and keeping the spirit of hard work. Employee motivation is one key driving factor to better performance and ultimate business success. 

Recommend a process that optimizes an employee-based suggestion program to continually 

refresh the total rewards of the organization. 

With the existing competition level in the business industry and global technological advancement, many organizations seek employees with technical knowledge and skills in their field to produce quality goods and services that can give them competitive advantages and encounter the competition. These employees with expertise are available in the market, but they are somehow limited, so companies have to go struggling and competing to have them. With the high demand, employees have raised their standards and minimum conditions that an organization has to meet for employment. In line with these provisions, organizations are forced to have keen interests in their employees to keep their demands and prevent them from moving to other organizations, particularly the competitors. 

According to Turner (2019), the competition in the labor market is high, especially in businesses where special skills are required. Employees are keen to find special employers who can meet their work-life needs without necessarily putting them under much pressure. Similarly, employers are keen to find top talented employees who can perfectly meet the job requirements and do the assigned duties. Many employers would not mind the kind of money they might be spending on employees so long as the business is making profits and the goods and services provided are meeting customers' needs. Companies are willing to provide extra cash to attract employees, retain them within the company, and improve their productivity. The mutual reward benefits between employees and employers can be attained through five steps, commonly referred to as the PRIDE process. The word PRIDE means the following: 

P – Provide A Positive Working Environment 

R – Reward and Recognition 

I – Involve and Engage the Workforce 

D – Develop Worker's Skills and Potential 

E – Evaluate and Measure Job Satisfaction 

The PRIDE process plays an integral part in enhancing job satisfaction and promoting employee-based suggestion program. Throughout the processes, employees will be engaged in creating a conducive environment for their operation, making them more satisfied with the jobs. By providing a conducive work environment, rewarding employees appropriately, engaging them in the workplace, developing their skills, and evaluating their satisfaction, employees will have an alternative but to remain loyal to their employers; they will automatically have the feeling of satisfaction because all the areas of their work-life needs have been addressed. 

If an organization carefully measures and analyzes the employees' needs regarding their total rewards, there is a high possibility that the organization will meet its job satisfaction. The process presented above can provide a better platform for an organization to analyze employees' work-life needs and meet these needs through a total reward system. Managers must understand how the employees view the need for fairness in rewarding them. BY establishing a better reward system, the recruitment process will improve significantly as it will attract top workers in the job market. 

References 

Bayraktar, C. A., Araci, O., Karacay, G., & Calisir, F. (2017). The mediating effect of rewarding on the relationship between employee involvement and job satisfaction. Human Factors and Ergonomics in Manufacturing & Service Industries , 27 (1), 45-52. 

Rai, A., Ghosh, P., & Dutta, T. (2019, December). Total rewards to enhance employees' intention to stay: does perception of justice play any role?. In Evidence-based HRM: a Global Forum for Empirical Scholarship . Emerald Publishing Limited. 

Santos, G., Afonseca, J., Lopes, N., Félix, M. J., & Murmura, F. (2018). Critical success factors in the management of ideas as an essential component of innovation and business excellence. International Journal of Quality and Service Sciences . 

Shields, J., Rooney, J., Brown, M., & Kaine, S. (2020). Managing Employee Performance and Reward: Systems, Practices and Prospects . Cambridge University Press. 

Sukawati, N. N., Gunawan, I., Ubaidillah, E., Maulina, S., & Santoso, F. B. (2020, November). Human Resources Management in Basic Education Schools. In 2nd Early Childhood and Primary Childhood Education (ECPE 2020) (pp. 292-299). Atlantis Press. 

Turner, P. (2019). Employee engagement in contemporary organizations: Maintaining high productivity and sustained competitiveness . Springer Nature.