An Effective Total Rewards Program For Increase Profitability

Organizational objectives contribute to creating a motivating work setting because they provide employees with a sense of meaning and purpose and help employees understand the goals they should be striving for (George and Jones, 2005). Mary Kay Cosmetics wants to be the top sellers in their industry, but they also want to promote a customer-centered culture that strives for total customer satisfaction (Incentive, 1991), but their current incentive program doesn't provide rewards for beauty consultants with high levels of customer satisfaction. Just because a VIP is a great seller and has the ability to recruit, doesn't automatically mean that she has the most satisfied customers of all her team members. Reward systems, such as Mary Kay's motivate employees to do well in the areas of their jobs that are measured by the performance-evaluation system. The problem is that rewards systems do not always measure all the behaviors that the individual need perform for the organization to ultimately be successful (Lawler, 1994).

This report examines 3 different compensation systems that our company can develop and enforce within our company for our employees. Compensation is the most important and rewarding factor for employees, so a thorough and thoughtful approach should be taken as we think about changing the way in which this company rewards it's employees for the work they do for us each and every day.

The right compensation program will depend on the organization’s business strategy and goals. To achieve these, an organization must recruit and select the best possible employees. To attract such employees, there must be an attractive compensation plan. Competitors will be offering different payment options, this may be based on pay rate or special perks, and a company’s stock options. Organizations must be aggressive yet reasonable to compete with competitors. Retaining and encouraging employees to perform at their best may be achieved through an immediate incentive award

For example, AFLAC would award its employees who present themselves within the community or volunteer for many charities, with the Volunteer of the Month award. This award can build the morale of the employee and keep them engaged. In the end not only are employees being recognized for their philanthropic work, but also it allows AFLAC to gain rapport due to its continuous efforts in the community. Secondly, AFLAC utilizes sound performance and incentive as an enhancement tool in order to promote and develop employees for the next level within the organization and keep pace with the company’s overall goals and strategies. “Approximately 90 percent of employees were attracted to and remain at Aflac because of company reputation. Employees are happy with the profit-sharing bonus, with 81 percent of employees saying they believe it is better than that of other companies” (p.7). This strategy is a marketing tool that allows AFLACs employees to see endless opportunity, which has allowed AFLAC to retain over 91 percent of it,

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

The sales department is the heart of every company. A company depends on the sales of their products. The success of the sales department is imperative to the continued growth of a company. In order for a sales department to experience success, the company must find new ways to motivate the employees on a continuous basis. An excellent way to motivate the employees is to provide incentive programs or total rewards programs. These incentive programs

At the for profit college, the upper management is experiencing an issue with their employee’s morale. Because there are government regulations that do not allow for traditional sales bonuses be given to employees, they need to find a way to offer their employees, who do everything they can to get as many enrollments as possible (just like any other sales company), go without any type of incentive program. This paper will outline the project that upper management and executives have decided to use for an incentive program. This will help improve employee morale, enrollment and profit for the organization.

By the very nature of its business model, the United Parcel Service of America (UPS) is task- and process-intensive, relying on its employees as the catalysts of delivering excellent service. While nearly every CEO at one time or another has said that their people are their most important assets, UPS lives by this mantra and has the financial figures on their investments in training and intensive programs to prove it (UPS, 2013). In a typical year UPS will spend nearly $300M on training including customized courseware and distance learning programs, many of them oriented towards giving their employees a more solid base for personal and professional development (Emmons, 1995). In conjunction with intensive training programs and high levels of investment in education, UPS also has one of the most advanced and thoroughly subscribed-to employee ownership programs in the Fortune 1,000 today. Their employee ownership program is designed to provide every employee with a very strong foundation of autonomy, mastery and purpose in their jobs, which are the building blocks of long-term learning and motivation (Dwortzan, 1982). The combination of the training programs and employee ownership give each employee a very clear sense of how valuable they are to the company and how critical their role is to daily profitability. The intent of this analysis is to evaluate why the UPS employee reward system is the best

Over the last 77 years, Morgan Stanley has been at the forefront of the financial industry. This is from the firm focusing on creating customizable investment products that are sold to retail and institutional clients. ("Company History," 2012) However, a problem is that many competitors are entering a period of flat growth that is at the top of S Curve. This is when a company will grow so big that it becomes difficult to continue increasing profit margins. (Nunes, 2011, pp. 1 5) In the case of Morgan Stanley, the recent financial crisis has made it more difficult for the firm to improve earnings. As a result, a new strategy must be developed that will motivate the sales force to do more. To determine the most effective approach requires examining six features of a total rewards program, the specific behaviors that will be targeted, assessing the value proposition and how to attract registered representatives.

The effectiveness of a total rewards program is determined by the specific practices organizations use. However, the process of implementing these programs is laden with challenges. As such, an organization ignores these challenges at its own peril. This paper seeks to recommend changes to the Burlington Coat Factory’s total rewards program and provide plans for communicating these changes in addition to the risks and opportunities emanating from these reward programs.

This article examined the necessity of changes required to traditional reward systems in order for employees to remain motivated and productive in the workplace (Lawler & Worley, 2006).The changes that must occur are in response to shifting environmental demands, with reward systems and motivational tactics holding exceptional importance to the ongoing success and longevity to the organization. The article then emphasizes the ineffectiveness of traditional reward systems, such as merit pay. This is largely attributed to how merit pay salary increases are small and become a permanent part of an individual’s pay (Lawler & Worley, 2006). As a result, the relationship between pay and performance is weak and not particularly motivating. As a more effective alternative, companies should look to implement reward systems such as bonuses in the form of short-cycle business periods, as they have shown to be effective motivators as well as flexible enough to compensate for organizational changes. Lawler & Worley (2006) concluded that “traditional reward systems lead to lack lustre performance, and that in order to create a high performance organization, companies must employ different reward systems that motivate performance, reward change, and encourage the development of individual and organizational capabilities” (p.5).

Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.

Reward and recognition programs must connect the needs and expectations of the workforce with the company’s overall goals and strategies. A program that reinforces important company values and goals will encourage employees to act in line with such goals and emphasize the importance of achieving these goals. Alternatively, rewards which do not connect with organizational goals may convey a misleading message and encourage employees to act in a manner that does not facilitate the

To motivate employees to work towards reaching organizational goals, managers frequently depend on some form of enticement. Beyond monetary compensation, awards and additional types of acknowledgment can be given, and the ability to choose a work schedule is a possibility. A reasonable pay system, which would be an incentive for individuals and groups to achieve organizational goals, is a hardship manager’s face (Jones & George, 2011). Within the company that I work for, every quarter awards are presented to Customer Service Agents who have maintained a 95 percent or above quality score. Monetary awards are given out as well as time off coupons.

Being rewarded and recognised for their work or contribution is what keeps an employee motivated to work towards achieving the organisational as well as personal goals. When the employees is motivated by rewards, they will have job satisfaction consequently increasing the productivity of the organisation. It necessitates the need of managers to pay more attention in understanding their employees and come up with suitable types of reward systems for the organisation so that the employees are intrinsically and extrinsically motivated all the time. The hypotheses that I put forward here is to support this statement that effective reward management is critical to