Total rewards (TR) refers to the non-monetary, as well as monetary, returns that employees are provided with by their employers for offering them their talents, results, efforts, and time. TR entails the on-purpose integration of various elements that help employers attract employees, keep them motivated and retain them. The elements are career openings and development, recognition and performance, work-life balance, benefits as well as compensation. The TR strategy entails the combination of the elements into customized packages aimed at motivating employees optimally.
The strategy can only succeed where employees perceive the rewards associated with each of the elements as valuable. The monetary compensation rewards include base pay, pay at risk, and incentive pays like performance shares and cash. The benefit rewards include workers’ compensation, social security, savings, retirement pay, paid vacation, company holidays, and life insurance. The rewards associated with balancing between work and lives include healthcare; dependent care; financial aid; and community participation.
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Other rewards associated with balancing between work and lives include management participation; cultural interventions; and workplace flexibility. The rewards associated with benefits, as well as compensation, include reinforcement of performance enhancement value; fostering of sustained improvement; and formalization of staff appreciation processes. The career openings and development relate to provisions such as tuition assistance, leadership training, seminars, virtual education, and sabbaticals. Others include succession planning, mentoring programs, internships, internal job postings, and emerging technology training.
Practice of Utilizing Products in Enhancing Employee Total Compensation
Makey utilizes own products in enhancing own employees’ Total rewards. It appreciates and recognizes its employees as one set of its key stakeholders. It is keen on ensuring that the employees work in good environments by investing in environmental preservation and sustainability. The company has a high regard for the employees’ labor rights. The company is involved in community activities via charitable giving. Makey has developed operational tasks like benefits along with compensation into a process that has is strategic and that has quantifiable outcomes. It links staff benefits along with compensation to productivity.
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Makey has developed a markedly comprehensive, as well as benefits, framework to support employees especially with regard to the distress they may suffer owing to its continued diversification and swift growth. Traditionally, it has offered its staff benefits like bonuses pegged on performance, and a cafeteria form of healthcare. The contemporary staff benefits offered by the company include fitness schemes, usage of company-provided outdoor gear like canoes and tents, and store discounts. The staff benefits offered by the company are culturally sensitive.
There are many organizational having the TR practice globally. The practice is rather common. Some of the organizations defined by the practice include WorldatWork and Royal Bank of Canada. WorldatWork (2015) has a Total rewards model that it uses in rewarding its employees. WorldatWork (2015) offers its employees competitive benefits as well as compensation packages. WorldatWork (2015) strives to offer its employees hospitable work experiences by acknowledging them, and supporting them to balance between life and work. As well, WorldatWork (2015) strives to offer its employees hospitable work experiences by supporting them to realize their cultural persuasions or pursuits, supporting their professional and career advancement, and ensuring that the employees work in safe, sustainable environments.
The Royal Bank of Canada (2015) runs a TR scheme for its employees. The scheme entails the on-purpose integration of various elements that help it to attract employees, keep them motivated and retain them. The elements are career openings and development, recognition and performance, work-life balance, benefits as well as compensation. The bank is keen on supporting the personal growth of its employees and affording them career advancement opportunities. The banks support the volunteer engagements of its employees. Notably, the bank appreciates that each of its employees has unique priorities and needs. Thus, the staff rewards its gives out encompass the flexibility and choice desired by employees (Royal Bank of Canada, 2015).
The bank’s TR scheme is designed in a manner that ensures that it reflects choice along with flexibility, as principles. Its design is as well hinged on the principle of shared responsibility to ensure the company’s success. Through individual employees’ choices along with dedication to success, they are capable of customizing numerous elements and develop career path that are sensitive to their abilities and interests. The bank allows its employees easy access to information about the rewards that they qualify for and can access.
Why the Total Compensation Idea is Good
The TR idea is quite welcome. It persuades the on-purpose integration of various elements that help employers attract employees, keep them motivated, and retain them. As a practice, Total rewards recognizes the significance of leveraging several cultural dynamics, practices, and programs to engage and satisfy talented employees, adding to business’ profitability. It helps organizations remain competitive in attracting talent.
TR schemes employ organizations deploy their career opening and development, recognition and performance, work-life balance, benefits, as well as compensation, resources to tactical advantage. Through the schemes, organizations experience the strength of leveraging diverse factors to attract prospective employees and talent, motivates staff, and hold on to talent. High-performing organizations have shown that the specific, proprietary TR programs enable them excel in fresh ways.
Makey’s Internal Weaknesses and Strengths versus Responses
Makey had various strengths, as well as weaknesses, which its TR program was aimed at responding to. Notably, the program responded to the strengths by ensuring that the connected rewards continued being enjoyed by the employees. In some cases, the connected rewards were streamlined to be enjoyed by more and more employees. For instance, the company continued providing the employees with the advantages that stem from a well-preserved environment by providing for the continuity of its charitable efforts.
The company continued providing the employees with the advantages that stem from the observance of labor rights, it provided for the monitoring of human rights within its premises. The company continued providing the employees with the advantages that stem from staff nature trips. It bolstered its traditional strength of offering employees healthcare and bonuses by offering them fitness schemes, usage of company-provided outdoor gear like canoes and tents, and store discounts.
Among the chief weaknesses that the company had was that it lacked a dedicated unit to look into operational tasks like the compensation, as well as benefits, given to employees. The company responded to that weakness by developing its personnel department into a standalone SBU (Strategic Business Units) charged with developing the tasks. It developed job descriptions and a detailed framework for the tasks. The company lacked the requisite staff skills in particular areas. The company responded to the paucity of skills by executing job evaluations and staff trainings.
Makey can expand its Total rewards program through the adoption of measures capable of further aligning HR with the attainment of own organizational values as well as goals. The following is a list of the measures that the organization should take:
- Makey should increase the rate of incentives in its staff compensation packages. Notably, staff incentives help organizations to focus, as well as reward, staff performance in defined periods. Employees enhance their overall productivity to earn given incentives, hence contributing to increased organizational productivity (Randstad, 2014).
- Makey should provide its employees with workers’ compensation, social security, savings, retirement pay, paid vacation, company holidays, and life insurance. Such benefits will help the organization supplement the compensation it provides to the employees. As well, the benefits will help protect its employees and their relatives from monetary risks (Randstad, 2014).
- Makey should provide its employees with healthcare cover, dependant care, community participation, cultural interventions, and workplace flexibility. These will actively support its employees in their effort to attain success in their homes and their homes concurrently.
- Makey should strengthen its systems for the reinforcement of performance enhancement value, fostering of sustained improvement and formalization of staff appreciation processes (Randstad, 2014). Such systems and their outcomes help meet employees’ inherent psychological requirement for the appreciation of their efforts by employees(WorldatWork, 2015). Organizations use the systems in reinforcing particular staff behaviors.