Total Reward Systems Paper Example

Introduction

Total reward is a description of a recognition strategy that brings together all the investments that a company has made in its workforce for instance pension, salaries, training, and development, with other things that employees value such as career development opportunities (Local Government Employers, n.d.). The total reward approach has advantages both to the employer and employees within an organization. Some primary advantages include enhancing employees' engagement which as a result contributes to the improvement of the performance of the organization and thus the achievement of the organization's goals. The total rewards approach primary aim is to give employees the opportunity to contribute and choose on the prizes offered and to have the freedom to psychologically contract with employers.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

The main agenda of this presentation is to highlight some of the advantages of incorporating a total reward system in an organization and to describe its elements and their benefits. Some of the issues highlighted in this presentation include elements of WorldatWork total rewards, design and communication, sales force compensation and strategic preparation of benefits.

Discussion

Overview of the Elements of WorldatWork Total Rewards Model

According to WorldatWork (n.d.), the following are the elements of total rewards that collectively define the strategy of an organization with the aim of attracting, motivating, retaining and engaging employees:

Recognition. This includes programs that acknowledge and give special attention to employees' performance, action or behavior. It supports the strategy of an organization by reinforcing employee's behavior, for instance, extraordinary accomplishments which eventually enhances the success of the company.

Compensation. This element involves payment made to employees by their employers for efforts and skills offered to the organization. The services rendered to the company by employees contribute significantly to the success of the business and hence importance for compensation. The payment incorporates variables and fixed or basic and allowances which are both tied to the level of performance by each employee.

Professional development. This element gives a provision for employees to develop their skills in their area of profession. It gives all the employees the opportunity t and tools to advance their skills and competencies, be it short term or long term career ambitions which with time benefits them.

Benefits. This element incorporates all the programs used by the employer to supplement all the cash compensation received by the employees. Some of the benefit programs include health covers, retirement and pension schemes, social security and savings. Other benefits include all the leaves such as leave of absence, sick leave, bereavement leave, and vacation leave.

Work and life balance. This element helps an employee to achieve success both at work and at home. It helps the employees to create a manageable workflow and strike a healthy balance between what is demanded at work and other personal responsibilities at home (Sharp, n.d.).

Overview of the Total Rewards Design and Communication

The design of the total reward package should ensure that all elements that are appealing to employees are all incorporated. It allows the management to decide from the outset the targeted workforce. Finance department should be involved when designing the system so that they understand how much the budget is. Consultation with tax, payroll and pension managers is also vital to ensure proper understanding of the process and to prevent future consequences.

After designing an all-round reward system, the management should communicate it to the employees. This would enhance and improve the relationship between the employer and the employee. According to VanOrnum (n.d.), the total reward communication will give the employees a better understanding of their incentives program and how it works and further explains to the value of health coverage benefits and retirement savings plan. The total reward communication can be delivered through electronic form, websites, and portals or printed forms.

Outline of Motivation, Behaviour, and Rewards Program Types for a Sales Force

According to Dunn (2012), an organization should choose the right and exiting incentive to reward the sales force to change their behavior for the success of the organization. The motivation chosen to pay salespersons should be within the budget so that they don't burden the organization so that they contribute to the achievement of holding a sales contest. Reward incentives can be job-related, tangible incentives, and experiential incentives.

According to tyre (2019), some of the strategies an organization should adopt to motivate the sales force include building trust with salespersons, ask reports directly from individuals, ensure they can access the basic needs, setting daily, weekly and monthly goals, and giving them great rewards, for instance, buying them dinner or lunch.

Salesforce should be trained to use the DISC assessment style to assess the behavior and type of clients they deal with.

Strategic Plan Creation of Benefits Programs

More companies are offering competitive incentive packages and therefore for a company to retain a talented a competitive workforce, it has to strategically plan an all-inclusive compensation and benefits programs. The management can strategically plan by identifying employee objectives by taking a look at the workforce, set a budget that is within the organization's ability, implementing a plan by incorporating it into a new employee manual and finally getting more creative than the competitors who might have more significant compensation benefit programs.

References

Dunn, J. (2012). 3 Types of Sales Incentives to Motivate Performance. Retrieved from https://leveleleven.com/2012/04/3-types-of-sales-incentives-to-motivate-performance/

Local Government Employers. (n.d.). What are the Benefits of Total Reward Approach. Total reward-How to get started. Retrieved from https://www.local.gov.uk/sites/default/files/documents/total-reward-9b8.pdf

Sharp, B. (n.d.). What are the Components of a Total Reward System? Retrieved from https://hrsoft.com/blog/what-are-the-components-of-a-total-rewards-system/

Tyre, D. (2019). How to Motivate Your Sales Team. Retrieved from https://blog.hubspot.com/sales/motivate-your-sales-teamVan

Ornum, C. (n.d.). Total Rewards Communication: A Brief Explanation. Retrieved from https://hrsoft.com/blog/4-1-1-total-rewards-communication-brief-explanation/

WorldatWork. (n.d.). What is Total Rewards. Retrieved from https://www.worldatwork.org/docs/linked/aboutus/html/aboutus-whatis.html