Benefits And Benefits Of Total Reward

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Total reward is all of the tools available to the employer which may be used to attract, retain, motivate and satisfy employees. Total reward is inclusive of all types of rewards such as direct and intrinsic as well as extrinsic (Armstrong and Murlis, 2007). All aspects of reward including base pay, contingent pay, benefits and non-financial reward are linked together as a coherent and integrated whole. The total reward approach is holistic, and therefore reliance is not based on just a few reward mechanisms functioning in isolation and includes all the ways in which people achieve satisfaction and reward for their work (Armstrong and Brown, 2006). Total reward plays a vital role in communicating the value of the employment package to…show more content…
The Hay model is an essential tool to consider when implementing a total rewards scheme, as in considering aspects of financial and non-financial pay, this provides a differentiated reward package making the organisation attractive to those with the desirable skills (Korn Ferry, 2016). Similarly, this can lead to the development of a total rewards programme which is cost effective whilst meeting needs of employees, thus retaining talented employees without negatively impacting the cash flows of the organisation, as to be reflective reward programmes need to consider organisational needs, particularly within tough financial periods (Armstrong et al., 2010). The Hay model provides a more holistic approach by considering the needs of the employer, such as improving performance, but also attends to the individualistic needs of the employee, by ensuring employees remain motivated and engaged (Korn Ferry, 2016). The Hay model is thus the best practice model for providing a bigger picture on employee engagement. An element of the Hay model is guaranteed cash, namely base pay which is considered an important element of total reward schemes, for in a survey based on 750 participating organisations, it could be seen that competitive base pay is the top employee motivator which attracts talented people to work for organisations (Aon Hewit, 2012). Therefore, organisations would need a competitive base pay to attract people and this needs to be considered in the total
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