Among the top rated aspects that are important to employees are benefits and compensations. Human resource in most companies holds benefits and compensations close to their hearts with companies that successfully adopt these two aspects gaining a maximum organizational advantage (Chang, 2016). It, therefore, requires that employers increasingly employ benefits and compensation to help employees realize full job satisfaction. Surveys on job satisfaction reveal that employers can gain critical opportunities in raising worker satisfaction by adopting total rewards strategy. Consequently, human resource departments are charged with responsibilities of measuring failures and successes of human resource practices in achieving organizational success.
According to Chang (2016), total rewards strategy has for long been an object of discussion with few organizations being keen on implementing the concept. With increased global competition for top-notch talent and in light of critical deficiency in critical-skill employees, global organizations have realized the need for adoption of rewards principles to enhance human resource delivery.
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L.L.Bean reward system
One of the global companies that realize the importance of rewarding employees is L.L. Bean Inc. L.L.Bean through its human resources department has gradually built on employee rewards in the wake of economic hard times for companies, employee attrition in the market as well as increasing competitive environment( Renz, & Herman, 2016). The human resource department has continually aligned its strategic framework with a total rewards system to realize global growth and remain an industry leader in its industry.
L.L Bean reflects on its employee commitment where the company provides its services and products as a way of enhancing total compensation for workers. Providing products and service to workers proves a marvelous way of acquiring and maintaining customer loyalty. By employees purchasing L.L.Bean products, they send a powerful message that the company products are worth purchasing thus working towards the company’s objectives. Accruing benefits revolve around onsite fitness centers, in-store discounts and using outdoor gear owned by the company.
L.L.Bean strategically uses total rewards since they represent derivatives of the issues and problems that the company faced. The need for a total reward strategy arrives at the company’s desire to improve sales and boost customer satisfaction. The building of L.L.Bean has been founded on the company’s objective of offering strong customer service which the management arguably views as the driver for strong profits. The adoption of total rewards by the company is meant to produce considerable employee satisfaction. Guaranteed employee satisfaction works to reciprocate and bolster customer satisfaction consequently working towards ensuring strong profits.
Additionally, L.L.Bean offers lucrative bonuses to its employs thus fast-tracking the company’s goal of maximizing profits and becoming a leader in its industry for offering the best rewards. Most importantly, the company does not discriminate against members of staff with employees who do not participate directly in making sales that include the finance, operations and human resource departments getting their fair of incentivized bonuses.
Traditional and non-traditional rewards
L.L.Bean offers compensations in the form of bonuses to boost employees’ morale. Additionally, gifting acts as another non-traditional mode of rewarding by the company with recognition for best-performing employees further providing motivation (Cascio, & Boudreau, 2016). Traditional rewards extended to employees of L.L.Bean include tents offered for camping.
L.L.Bean Strengths and Weaknesses
A SWOT analysis taken for L.L.Bean reveals that the company boasts of several strengths that places it at a vintage position in its industry. First, the company is well established in the outdoor brand, trusted with quality and having a global presence. In its range of products offered to the market, L.L.Bean stands out as offering a variety of products making it a competitive advantage for the company. However, according to Dixit and Skeath (2015), the company does not go without weaknesses where it has a burden of maintaining its strong brand with difficulties to diversify to new product markets. In comparison to other established brands, L.L.Bean has a relatively reduced international presence.
Recommendations
Despite, adopting the total rewards system, L.L.Bean still has chances of improving to gain more from employee satisfaction. In my opinion, the company can make inroads in providing better employee satisfaction by engaging in traditional healthcare benefits. The existing pension employer nature of the company can better be improved by adoption of a 401k health benefit to bolster employee loyalty. By adopting change from being a pension provider, L.L.Bean will provide employees with increased control over their retirement. The company’s current pension plan for its employees limits their benefits to being employees of the company creating an impression of not giving much care to employees who possibly do not have a future with the company.
References
Chang, J. F. (2016). Business process management systems: strategy and implementation . CRC Press.
Cascio, W. F., & Boudreau, J. W. (2016). The search for global competence: From international HR to talent management. Journal of World Business , 51 (1), 103-114.
Dixit, A. K., & Skeath, S. (2015). Games of Strategy: Fourth International Student Edition . WW Norton & Company.
Renz, D. O., & Herman, R. D. (Eds.). (2016). The Jossey-Bass handbook of nonprofit leadership and management . John Wiley & Sons.
