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Total Reward Program

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Essay Question #3 Response:
A Total Rewards Program is a blend of monetary and non-monetary rewards offered to employees. The major dimensions of an effective Total Rewards program are compensation, benefits, work experience, culture and environment. Compensation includes an employee’s base pay, merit pay, incentives, promotion pay increases and any inflation adjustments a company may offer. Benefits are your health plans, disability income, life insurance, retirement plans, paid time off, executive benefits and any employee assistance programs. Work experience includes work-life balance incentives such as wellness programs, flex-time, employee and family assistance programs (EFAPs), and etc. Work experience also includes performance management such as your performance appraisals, goal setting and any recognition and awards. Also part of work experience is your career growth including training, professional development, coaching and mentoring. The company, organization and HR strategy are components of the Culture and Environment dimension of an effective Total Rewards program. Financial impact, customer expectations, employee interests and expectations are all also part of what makes up the Culture and Environment.

Total Rewards Managers must design and manage programs to help retain, attract and engage key talent. The Total Rewards Manager must know and understand the Human Capital strategy for the organization. With today’s economy and competition in the marketplace, employers must look for ways to reward and motivate their employees. This is very difficult as benefit costs continue to be on the rise with no end in sight. Total Rewards Managers need to be able to generate a balance between corporate dollars spe...

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...r business strategy(s)? Employee values, return on investment (ROI), employee engagement, employee satisfaction are all key measures of success in a Total Rewards program. Business strategies change every three to five years as we have discussed in class. How often is your company’s total reward strategy being reviewed to ensure it has ongoing alignment with the business strategy?

Works Cited

http://www.shrm.org/hrdisciplines/benefits/documents/07rewardsstratreport.pdf

http://www.ceoforum.com.au/article-print.cfm?cid=6274&t=/Ken-Gilbert--Mercer-Human-Resource-Consulting/Aligning-your-total-rewards-strategy-with-your-business-goals/

http://www.aonhewittcommunication.com/consulting/includes/attachments/BenefitsQuarterly.pdf

http://www.legacybowes.com/our-services/hr-a-organizational-development-services/compensation-and-benefits/total-rewards-system.html
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