Total rewards are not just about pay, it is everything that is valuable to an employee in relation to employment. Employees want to be rewarded for their time and energy, therefore, organizations have developed total rewards strategies to attract and retain the best employees.
Describe each of the top five (5) advantages of a total rewards approach
The top five advantages of a total rewards approach are increased flexibility, improved recruitment and retention, reduced labor cost/cost of turnover, heightened visibility in a tight labor market, and enhanced profitability. According to Wiley (2011), each employee enjoys a sense of flexibility; it is viewed as a pathway for employees to ...view middle of the document...
The cost of turnovers can promulgate a negative effect that will allow companies to lose productive employees, customers and eventually sales.
Heightened visibility in a tight labor market is another facet of the total rewards approach. Every day, organizations are faced with competition for talented workers. Each individual brings their unique talent to the organization, and employers are beginning to cherish that uniqueness, and realizing how much their employees contribute to their organization. According to Wiley (2007), an employee is important to an organization, and they are even more important when there is a need to fill the available job. Organizations are spending an abundance of time trying to enhancie profitability to keep their employees from leaving the company. Employees are looking for “new deals” but’ at the same time affordable benefit cost. Organizations must strengthen their programs, and put in place a program that is flexible that will benefit from a diverse workforce.
Describe five common ways a total rewards can go astray?
There are five common ways in which a total rewards strategy can go astray. Firstly, an organization may attempt to re-engineer the entire program in pieces as an alternative to reviewing and re-engineering the whole program. In order for the results to be successful, all aspects of the program must work together in a comprehensive manner Wiley (2007). As these changes are implemented, an organization must give their employees enough time to adapt and to have a clear understanding as to what is expected.
Limiting the number of people involved is another way a total rewards strategy can go astray. Stakeholders play a vital role in implementing a strategic plan. Therefore, in order for a total rewards strategy to be effective, all groups should be engaged as this helps to formulate a shared vision.
Thirdly, by not conducting a thorough impact analysis can lead to divergence in an organizations total rewards strategy. It is imperative that an organization analyze their entire program, check for the pros and cons and investigate all angles of the program for future reference.
Unambiguous communication is yet another means by which a total rewards strategy can fail. Employees may get confused when too little or too much information is provided for the job at hand. According to Fisher, Schoenfeldt, and Shaw, organizations want their employees to recognize the value of the total rewards program; therefore, proper communication leads to employee engagement and increased productivity.
Describe the six (6) steps in designing a total rewards program.
The first step in designing a total rewards program is to analyze and assess. In order to develop a total rewards programs employers
must have a clear understanding of the surroundings. An organization needs to conduct a full inventory of the formal and informal practice....