Total Rewards System
Total rewards strategy refers to the concept which outlines all the important tools accessible to employers that can be employed to entice, motivate, and keep employees. It comprises of six elements, which include compensation, work-life effectiveness, talent development, benefits, recognition, and performance management (Gish, 2016). These elements constitute the instrument where an organization or institution chooses to provide and arrange a value proposal that engages and satisfies staff, who produce excellent performance in business and outcome.
The outline of the organization's requirement for a total rewards structure
The corporation must be familiar with what is entailed in the total rewards program. Total rewards may entail each element that employees consider valuable, following the employment connection, and it becomes a significant relationship of trade since the employees provide their talent, effort, time, and results (Rmi, 2019). The company has to properly acknowledge and compensate, alongside the employers, understanding the importance of their employees. Thus, the company must have a strategy, which will guarantee employees of getting rewarded for their hard work, dedication, and loyalty.
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Before implementing a total rewards method, the organization has to answer different significant questions like the kind of rewards, which would lead the designing process of the plan, how the strategy will be funded, and the present business state (Rmi, 2019). This would assist in establishing an excellent total rewards system. For employees to stay competitive, the organization has to implement a great talent pool, which would coach, mentor, and provide programs that offer further education for both individual and professional growth (Rmi, 2019). Therefore, an efficient total rewards method will essentially power appropriate behaviors in workers, strengthen the general business plan, and result in the achievement of the company.
Express a total rewards strategy to incorporate the essentials of compensation and the controlling environments
An effective-defined reward principle enhances the achievement of a company by aligning payment and extra additional payments with the organization plan. The proposal has to demonstrate to employees the value and benefits it holds as well as power the market. The total rewards plan has to align with the business strategy and the human capital of the company (Lotich, 2017). The foundation of company B’s compensation principle is acknowledging and awarding achievement. The company’s mission is ‘to engage, select and upgrade all people based on individual and professional qualifications.’ The organization believes in performance-based remuneration, which plays an essential role in attracting, developing, and retaining professionals who are talented (Lotich, 2017). Company B, as an insurance company, the strategy involves giving incentives like bonuses to top-performing employees. This strategy motivates other employees to work harder to be able to get the provided bonuses as well.
In addition, employees are entitled to an annual increase in their salaries. The strategy ensures that workers stay motivated and keep making the customers happy, which would result in business productivity. Another element of the strategy that can help inspire and keep the workers would be employee recognition, where employees who perform well in their duties can be awarded points through the system, which turns into money (Lotich, 2017). Any employee who proves to be dedicated and hardworking should receive positive recognition and reinforcement for their effort and hard work. Therefore, company B's total rewards strategy recognizes, appreciates, secures, and rewards its employees.
Explain the advantages of the total rewards strategy you are proposing and how it might satisfy the employees’ needs
The above proposed total rewards strategy has various benefits to not only the employers but as well as employees. Employ retention, performance, and reward offers different significant benefits to employees’ needs. The formulated total rewards system ensures that the company’s hired employees are aware of the business’ available pay bonuses, improved benefits, increased break, and compensated sick leave (Gish, 2016). This strategy proposal has an instant incentive for employees’ retention by offering staffs with a sequence of long-standing goals and projections. The transparency of this kind of program aids in fostering a healthy employer-employee relationship in the company. This is accomplished by placing the company managers and employees on the same footing regarding knowledge about career paths (Gish, 2016). Employee retention encourages, gives hope, and provides a feeling of job security to employees.
The total rewards plan offers direct motivation for the performance of each employee. The workers understand that the incentives only happen when they achieve certain standards of performance. The aspect of employee reward motivates and, most importantly, provides individual workers with extra earnings besides their annual salaries (Gish, 2016). Management of performance, training, and development of professionals allows workers to acquire different essential skills through training and education. Hence, it increases employees' ability and knowledge of their jobs.
The total rewards system comprises of basic salary, benefits such as health insurance, performance-based payments, and employee recognition. This total pay is designed to cater to employees' needs and roles. Basic payment is designed to reward the employees' value, performance-based pay is for emphasis on the outcomes, and the benefits are to ensure employee protection from health and life problems as well as recognition and holiday (Gish, 2016). The benefits address workers’ individual preferences and need. It also offers a better engagement of employees’ interested family members to learn more about the company’s benefits and utilizing the benefits that are offered to them as well. Since employees prefer working in a pleasant workplace, the proposed total rewards strategy designs a workplace where employees’ development is critical. The workplace and employee roles are formulated with attention to facilitating employees’ development (Gish, 2016). Workers need to feel that their presence and roles are important and understand the importance of their roles to the company's goals. This is only fostered through open communication, which the total rewards system advocates for (Gish, 2016). Employees who feel that their presence is appreciated are motivated to work harder and feel that they belong to the organization.
The company’s benefits packages and compensation strategy demonstrates how it values its employees. It utilizes talent attraction, retention, and engagement to promote organizational success. This strategy is essential in creating employee commitment (Gish, 2016). The involvement of employees is because of employees believing that their future is connected to the company’s future and their readiness to make individual sacrifices for the company (Gish, 2016). Using this strategy makes employees feel that the organization values not only them but also their families. Therefore, they will develop an emotional and intellectual attachment to the organization.
Examine the crucial communication elements of the total rewards system
Communication is the absolute vital element in implementing a total rewards system. It is important for a company to effectively communicate its strategy to the employees in a way that they understand easily. The system cannot be successfully implemented if workers do not understand what it entails (“Communicating Total Rewards," 2015). Prior to the communication of the strategy with workers, the company has to figure out when to communicate, how to pass the message, ways of communication, and who to pass the message to employees. After answering these questions, it can begin the communication process.
The company needs to select a team to communicate to exempt employees and another team to communicate to nonexempt employees. The team communicating to nonexempt employees should provide the necessary information in detail about the plan during the process of recruitment and emphasize on the implementation of the plan and the policies involved ("Communicating Total Rewards," 2015). Both teams should be provided with written clarification of the plan. In addition, there should be toll-free lines to guide employees on the benefits offered and how to use them.
The organization should set aside advisors for employees who would wish to use their received benefits or packages. For instance, a worker who had an accident and became disabled would begin to benefit from available disability programs in the company by getting the guidelines from the organization's advisors. The advisors should also create career paths for the workers, provide training, and advise them on the reimbursement opportunities ("Communicating Total Rewards," 2015). If a change is to be made on the strategy, the company should call for employees’ meeting and inform them about the changes. Besides, the company can provide flyers or write emails to workers concerning the modifications. Communication at each phase of the strategy is critical for the organization.
Show the strategy for developing a competitive pay structure
To create a competitive compensation system, the organization has to carry out a study and know its market. The company has to investigate its region and industry. This is to determine the payment scale ("Developing a Competitive Pay Practice in Your Organization," 2019). Then the company has to identify workers who are likely to turnover by evaluating payment ranges at least annually. Developing a compensation plan is important to support the company’s goals while avoiding issues like inequities, employee turnover, and engagement. Finding inequities assists in preventing loss of the company’s valued employees ("Developing a Competitive Pay Practice in Your Organization," 2019). Lastly, the company has to communicate the strategy to employees. Informing workers about the compensation plan increases transparency, and makes employees feel valued, aligning their efforts with the organization's goals.
References
Communicating Total Rewards. (2015). The WorldatWork Handbook of Compensation, Benefits & Total Rewards , 53–86. doi: 10.1002/9781119196600.ch5
Developing a Competitive Pay Practice in Your Organization. (2019). Retrieved November 5, 2019, from https://www.villanovau.com/resources/hr/developing-competitive-pay-practices/
Gish, W. (2016, October 26). The Advantages of Having a Total Reward in Organizations. Retrieved from https://smallbusiness.chron.com/advantages-having-total-reward-organizations-14161.html.
Lotich, P. (2017). 7 Keys To An Effective Compensation Strategy – The Thriving Small Business. Retrieved November 5, 2019, from https://thethrivingsmallbusiness.com/compensation-strategy/
Rmi. (2019, June 4). Creating a Total Rewards Program: Compensation and Benefits. Retrieved from https://rmi-solutions.com/creating-a-total-rewards-program-compensation-and-benefits/.
