Total Rewards Essay

3176 WordsJul 10, 201413 Pages
Total Rewards: To Infinity & Beyond Motors and More, Inc. – A Path to Success Jerry Moton, Cassandra Reeves, Faye Singh & Mike Wasilchin 5/31/2014 Table of Contents Total Rewards Strategy Total Rewards Strategy Benefits Provided at Motors and More Inc. Currently Motors and More employees receive only statutory employment benefits. Statutory benefits are Social Security, workers’ compensation, unemployment compensation and FMLA leave. Social Security provides retirement and disability income and can supplement unemployment insurance. It is funded by equal contributions between the employer and the employee. Workers’ compensation covers medical costs and employee pay if the employee is unable to work due to a…show more content…
Compensation Compensation includes both monetary and non-monetary mechanisms. Compensation will always include the employee’s base salary, but additional benefits, such as health insurance, retirement plans, performance bonuses, recognition, educational benefits, and promotion opportunities are all important components of the total benefit package and play an important role in the organization’s ability to attract top talent. Different types of compensation motivate employees in different ways. Employee’s motivation and job satisfaction can be impacted with incentives tied directly to performance, such as pay, bonuses, and rewards. Retention of employees is tied to long-term benefits such as health insurance, retirement plans, and growth opportunities. Retaining employees saves money in recruitment and training costs and helps maintain an efficient and knowledgeable workforce. Non-financial rewards can have an even more substantial impact on employee satisfaction and motivation than traditional financial rewards. (Thompson, 2013) A study by the Hay Group involving around four million employees found that employees listed work climate, career development, recognition and other non-financial issues as key reasons for leaving a job. Even well-compensated employees may leave a company if dissatisfied with these aspects (Thompson, 2013). Some of these non-financial rewards include flexibility in work hours, training opportunities, and recognition. Pay

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