Total Rewards

The intent of this assignment is to develop a user-friendly tool that may be applied in the workplace to document Compensation processes and to guide a practitioner in completing the critical steps of each process. The purpose of this assignment is to assist in describing each component of a compensation management system, to develop a practitioner's guide for several of the key compensation management tasks covered in HR511 Total Rewards.

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:

For this assignment; we have been asked to design the company's new Total Rewards package with the objective of attracting and retaining the best talent. The first thing we have, to do is perform some background research on best practices for benefit design. I am personally researching nonprofit organization benefits and I am currently taking over the position as HR person for the company.

The key components to developing effective Reward Strategy is to ensure that there are clearly defined goals to meet business objectives, that the reward programme meets the needs of both the organisation and its employees, and to ensure that this is then supported by effective HR policies. In order to ensure these criteria are met there are a number of factors which influence how reward strategy is developed which include both internal factors within the organisation itself, as well as external factors outside the organisation.

The first advantage of a total rewards approach is self fulfillment so that people are recognized for what they do and encouraged to reach their potential through effective learning and development processes and given feedback on their performance. The second advantage is an organization culture where roles are clear and organizational and personal values are in alignment so that employees engage and enjoy work. Another way to consider the necessary components of rewarding people is to view them as individuals, within their team, in the organization and generally in the workplace. The fourth advantage is recognition, you must make sure that the employees

The total reward approach emphasize the most important of considering all features of rewards as an integrated whole. Each element of total reward base on the contingent of performance competence or contribution employee benefits and non-financial rewards which involves intrinsic rewards from the employment environment and the work are linked.

According to Buttle’s staff handbook, Buttle’s believe that “there should be fair recognition and reward for commitment as well as sufficient return to ensure financial investment”. To a certain extent, this is really effective in order to support their objectives which are reaching 25m sales by 2020. This will further create a positive atmosphere whereby staff will be more engaging in order to reach Buttle’s HR Objectives. Analysis of the evidence suggests that majority of staff that were interviewed felt valued and liked working

Armstrong (2012) affirms that definitions of total rewards characteristically includes not only traditional, quantifiable elements such as salary, variable pay and benefits but comprises also more intangible non-cash components such as gaining knowledge, ability to acquire and act or take responsibility, progress in career, and the conducive environment provided by the organization. SZT Corp requires a pretty complex and flexible total rewards program to meet the needs of their multi-national colleagues. The total rewards programs has to slightly vary for each country that SZT Corp operates in and must cover compensation, benefits, performance and recognition, learning and development, and a work-life balance. SZT Corp has to maintain a total rewards program that remains competitive with the competitors in the different nations all over the world.

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

Organizations create compensation and benefits packages in order to attract the best talent. In today’s global economy it is imperative that organizations offer compensation packages that are competitive in order to recruit the very best talent in the world. However, in order to be successful, compensation packages must align with business strategies. Authors “Mathis, Jackson, and Valentine (2014) explain that an effective total rewards approach balances the interests and costs of the company with the needs and expectations of employees” (p. 369). In order to gain a competitive edge, organizations must balance the costs of payroll and benefits with rewarding employees for their contributions. This paper will analyze the construction of a compensation and benefits package that is needed for a new secretary position at the Frye Memorial Hospital in Huntington, WV. The paper will highlight the essential elements of a compensation package. Moreover, the paper will examine how the compensation package aligns the Human Resource (HR) strategy with the Hospital’s business strategy.

And lastly, as the sixth strategy they decided to adopt encourage achievement through a rewarding system. This strategy was adopting an employee appraisal scheme that was encouraging achievement by rewarding employees who generated successful business ideas. Employees that successful innovate new products are promoted to be the managers of that product division, this ensured that other staff members are motivated to work harder and discover new product innovation as they seek to one day become managers of their developed product lines.

Several pay and reward strategies can be adopted by organisations. However, each of the strategies involves issues that must be considered as it could affect the employees and the organisation. Therefore, it is vital that each organisation implement and develop certain pay and reward strategies, which are aligned with its own business strategies. This will ensure that perspectives of employees, employers and the costs are all considered in the course of the application of each strategy. The aim of this essay is to explain and evaluate the main pay and reward strategies adopted by organisations as well as the benefits and disadvantages of each. Graded pay, broad-banding graded-pay, labour-market-related pay, performance related pay and total reward which includes financial and non-financial rewards will all be explained in detail and evaluated as well as the benefits and drawbacks of each.

There is a clear business case for strategic compensation. Well managed rethinking of performance management, rewards and benefits leads to better business results, stronger capability, higher staff retention levels, heightened motivation and employee satisfaction. The success stories of organizations leading the field in strategic compensation prove that how employees are motivated, rewarded, recognized, fulfilled and challenged to perform better is a key differentiator between excellence and plain mediocrity.

Add to that the global marketplace setting and economy to see that this is not an easy task for managers to pull off. In a peer-reviewed journal article by experts Aguinis, Joo, and Gottfredson entitled, “What Monetary Rewards Can And Cannot Do: How To Show Employees The Money,” a general discourse explains the pros and cons of monetary rewards while giving their best thoughts on how to improve employee performance. Also in terms of employee rewards other related issued are discussed such as timeliness, balance of monetary and non-monetary incentives, precise measurements of performance and provision of offering guidelines for management to implement. All in all each business is individualized and should match a sensitivity to understanding employees' unique expressions, feelings, and talents and reward accordingly.

Most people are motivated by the financial rewards they get. Hence paying the right salary and other fringe benefits are very important to make a business success. People feel strong about their salary and other rewards. Further correct rewards system help to attract reliable, skilled and experienced employees and also to retain the employees (Riley, 2012).