Why Total Reward Is Important

Retention of managerial employees at Tanglewood is extremely important to the organization, their mission, and the organizational culture that Tanglewood values. As the organization continues to exponentially grow; their staffing and recruitment processes and procedures have not been integrated to focus on retention management. This paper will examine the relationship between managerial performance and turnover, why managers leave, additional data that the organization should utilize, equal employment practices, and recommendations for strategic retention strategies for managerial positions.

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.

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).

While there has been research in subjects dealing with turnover, things such as organizational strategies have not been studied much. Davis (2013) has stated that there is little research on the strategies employers do to minimize turnover. There have been different studies that have researched different factors in employee turnover and satisfaction. Studies have been done on the retention and turnover of older workers (Armstrong-Stassen & Ursel, 2009), developing retention policies (Mitchell, Holtom, & Lee, 2001), job content and satisfaction (Ertas, 2015), and the effects of employee retention on an organization (Davis, 2013). However, little research also exists concerning millennials as well.

Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time. Retention of human resource is beneficial for the organization as well as for the individual too. Materialistic era and utility theory are responsible for changing of jobs. Corporate are facing problems in employee retention. Hiring calibre people to the organization is the perpetual need of organizations, but retention also is

Every generation has its own customs, values, and expectations of the world around them. These differences are very apparent in a common place such as the work environment. In this day and age, it is extremely important that organizations make their company more competitive and beneficial than other career opportunities. Instituting a total rewards system into an organization can assist to invite the paramount talent available and significantly condense turnover (Jiang et al., 2009) but also compensating employees with matters most during that specific era.

An organization may have any number of goals, for example, sales growth, market leadership, profit maximization and customer satisfaction. It is clear that an organization will only be successful if employees are performing their tasks at a consistently high level and in line with the company’s objectives. To achieve this, organizations have tended to reward employees who demonstrate this high level of performance and behavior (Gatenby et al., 2008). These rewards may be intrinsic and/or extrinsic. Many theorists have critically discussed the core aspects of employee motivation, concluding that intrinsic and extrinsic rewards will only be motivating if these are of value to the individual. Intrinsic motivation lies in the internal satisfaction of an individual – concerning only the enjoyment of the task itself. Whereas extrinsic motivation focuses on external outcomes, in particular financial rewards (Psycnet.apa.org, 2017). In this essay rewards will be regarded as tangible or intangible assets in response to an individual’s achievement (Oxford Dictionaries⎪English, 2017), and motivation will focus on the behavioral aspects of why an individual’s productivity and performance increases.

Turnover is when employees leave an organization either to seeking higher pay elsewhere or for any other reasons (Allen 1). Turnover in an organization is an important aspect that can affect the operations of a business. It has been proven over time to be one of the most expensive and one of the most difficult challenges that can face an organization. As such, Human Resource managers and other top management teams in every industry must pay attention to issues related to employee turnover. Turnover has also drawn the attention of academicians who develop an interest to do more research about it. The paper will focus on the effects of turnover on a business organization.

Attracting the right talent and the ability to retain these employees is vital to the success of any company. Failure to attract and retain the right talent created high employee turnover affecting the business financially. The company will have to invest in recruiting, training, and benefits just to name a few. In addition, high employee turnover diminishes employee morale and affects company culture, which in the long run, decreases productivity due to poor workforce performance and thus, profits decreases.

Obtaining and retaining talent is a struggle for both small and large companies. Companies are looking for talented employees to take their business to the next level, while employees are looking for an environment that will enhance their talents and provide growth. According to (Purushotham, 2009) every organizations goal is to attract and retain talented people through the use of monetary and non-monetary rewards. This report highlight ways companies has attract and retain talented employees using non-monetary means along with the issues, considerations and challenges both employers and employees face.

The article emphasizes that managers are skeptical about the redemptive effects of rewards. Many companies in United States support as well as use this program to enhance the employee productivity but there are many evidences that render this practice useless. These evidences state that the actual effect that could have been achieved by the program is not the end result.

Benefits are a critical factor in the attraction and motivation and the retention of talent in the 21st century, packages based on rewards will have the power to motivate employees attitudes and behavior are aligned with organization goals strategies and culture Youssef-Morgan, C. M., & Stark. E. (2014).

Moreover, with the help of reward frameworks it would be easier for the Human Resource manager to implement effective reward policies and it might comprise diverse types of recognition, advancements, reassignments, non-money related rewards for example vacations etc. Imran et al (2014) stated that when workers surpass their objective or surpass their standard they must be remunerated promptly as a process for motivating them. By doing this, representatives directly connect the prize with conduct and higher performance they have achieved. Also, the effective reward framework must concentrate on the positive feedbacks as well as uplifting response energises the desired method in companies. This wishes representatives to take constructive actions encouraging rewards as reward projects must be legitimately defined in the company to support positive conduct, this leads to higher

Organizations that reward employee performance receive a return on investment (ROI) through greater customer satisfaction, less turnover, and employee moral (Reed & Bogardus, 2012). Studies show high-performing companies put much emphasis on total rewards to attract and retain the best talent in the industry (Ramona & Anca, 2013); this is why the collection and analysis of job reward data are crucial to the success of organizations. “Price is what you pay. Value is what you get” (Buffet, 2008, p. 5).

Total compensation plans and/or a total rewards program define an organization 's strategy to attract, motivate, retain and engage employees. Compensation and benefits have paved the way for total rewards that encompass not only compensation and allowances, but also personal and professional growth opportunities and a motivating work environment (Heneman, 2007).”