Discussion 1
What is the total rewards model? These are other benefits that an employee gets from the employer other than the basic pay that is made every month. There are variety of total rewards to be chosen from, and they depend on what the employee will choose. Some include compensation, talent development, performance management, work-life effectiveness, recognition and profits (WorldatWork, 2018). The rewards model is designed to motivate the workers and to make sure an organization has maximum production. Compensation is the wage that a worker gets for work done, time and effort are rewarded. The benefits are what the owner uses to increase the cash reward that workers receive may include retirement pension, coverage of hospital bills and security. Firms should try and support its staff to have achieved personal goals this is work-life effectiveness and lastly the performance which include the efforts which a worker has in the achievement of objectives of a firm.
The traditional approach to compensation is a method used to support hierarchies in a firm, emphases on the responsibilities and duty, has no room for change and the data is shared to only those who need to know (VanOrnum, 2018). Gary Dessler defined compensation as “all forms of pay going to employees and arising from their employment.” In his book Human Resource Management. The expression ‘all forms of pay’ does not comprise benefits that have no financial advantage, they are either straight benefits, or they are indirect profits. (Arul, 2014). Compensation motivates workers thus employer should consider it in the management of the organization. Traditional compensation includes regular wage increase which may be done after several months of working in a firm, advancement of position in the organization should be done merit should be considered when promoting staff. There are a set of benefits that are in the traditional compensation plan. The main difference between the total rewards model and traditional compensation is that the total rewards the employee choose while in traditional compensation some laws govern the compensation plan. (EMPLOYEE COMPENSATION, 2018)
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Discussion 2
Demographic shifts, basically it is a change in a firm or workplace from old set to doing a new set of things. For instance, in a workplace where there is minimal inter-company movement, the ones who are in the managerial position may end working there till they retire which may take a minimum of 20 years (Arul, 2014). Thus, the demographics of age may shift dramatically. Commonly applied in areas to which fall under demographics. The company will have targeted people to hire before hiring others. The targeted may include friends and family members. With this, the total reward will be minimal since friends and family member will not be very concerned with the awards but on the improvement of the company.
Globalization is an emerging trend in the business world where good and services are available internationally. Currently, people can buy goods from all over the world that is globalization. The impact on total rewards is that employers will be able to take a vacation in any of the countries that they usually in business with and by this globalization will have a stronger foundation in such two countries.
Technology has been changing each day; technology is the knowledge in science put into practical use. A firm may upgrade its technology to make sure that there is sufficient and maximum production of the firm (Arul, 2014). The primary total reward workers will be not straining in output if the organization has adapted to the latest technology.
Competitive forces are the features that impact the competitive situation of a firm in any market. They include bargaining power, the threat of new competitors and competition among current firms (Arul, 2014). In total rewards model, the bargaining power is used when dealing with the workers to bargain on the deal they require.
References
Arul, D. P. (2014). Compensation management. PONDICHERRY UNIVERSITY.
EMPLOYEE COMPENSATION. (2018, October 24). Retrieved from Reference for Business: https://www.referenceforbusiness.com/small/Di-Eq/Employee-Compensation.html
VanOrnum, C. (2018). How is the traditional compensation different from a modern one? HRsoft. Retrieved from HRsoft.
WorldatWork. (2018, October 24). Retrieved from www.worldatwork.org: https://www.worldatwork.org/total-rewards-model/
