Benefits And Benefits Of Total Reward

2176 Words Mar 24th, 2016 9 Pages
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 employees, for instance employers should provide employees with statements that emphasise the value of basic pay and the wider benefits package (CIPD, 2016).
Some of the aims of introducing a total reward scheme include that the combined effect of transactional and relational rewards that will make a deeper and longer lasting impact on the motivation and commitment of people (Miller, 2010). By increasing levels of engagement through involving people in their own reward package, it builds a relationship capital where people develop strong messages about the organisation and its values (Armstrong, 2010). Therefore, total reward can be considered a useful strategy in helping organisations to attract and retain staff in addition to enhancing…
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