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Advantages and disadvantages of reward management
Advantages and disadvantages of reward management
Advantages and disadvantages of reward management
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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
Mujtaba, B. G., & Shuaib, S. (2010). An Equitable Total Rewards Approach to Pay for Performance Management. Journal of Management Policy and Practice vol. II (4), 111-121.
In a business or a workplace, it is essential for the organization, which consists of the employers, the managers, and their employees, to work towards reward programs within the human resources in order to create a healthy and cordial work environment and most importantly, to efficiently achieve business’ goals. In Carol Patton’s (2013) article, Rewarding Best Behaviors, she explains the importance of several companies that are beginning to recognize their employees, not just for the end-results, but for reflecting good behaviors towards the business’ values, such as demonstrating creativity on certain projects, problem solving towards certain issues, and also collaborating with fellow co-workers. Patton stresses that these reward programs could help suffice the overall being of a company as long as the rewarded behaviors correlate with the corporate strategy. Patton expresses that some things human resources must comprehend include “how its company creates success, what drives its business strategy and what behaviors are needed from employees to achieve that success” (Patton, 2013 para. 15). Moreover, the employee would be reflected as a role model for others and perhaps influence them to demonstrate comparable behaviors.
The total rewards approach challenges the human resources (HR) professional to look at the entirety of the work experience, not just the traditional compensation and benefits packages, when developing strategies to recruit, retain, and motivate employees (Giancola, 2009; Pregnolato, Bussin, & Schlechter, 2017; Stoskopf, 2004). Total rewards approach has five components – base compensation, benefits, performance and recognition (Giancola, 2009; Gomez-Mejia, Balkin, & Cardy, 2016; Pregnolato, et al., 2017; Stoskopf, 2004), work-life balance, and development and career opportunities (Giancola, 2009; Pregnolato, et al., 2017; Stoskopf, 2004). These components, when integrated into a comprehensive total rewards
In April 2010, KK BB, the CEO of Marshall & Gordon, a leading public relations firm met with the firm’s leadership committee off-site in Miami. This off-site brought together Marshall & Gordon’s executive committee, practice and regional heads, and senior HR officers to discuss on redesigning the firm’s compensation system. A global advisory taskforce, under the direction of an external consulting firm, had spent three months collecting and analyzing data. Marshall & Gordon hired external specialists to design the new performance management program. The specialists proposed that the senior managers and human resource form a global advisory unit together with Marshall & Gordon partner to represent the firm’s five regions of the firm and lead the design process. The advisory unit surveyed all consultants in February in order to understand their way of thinking about the fairness, worth, and effect of the current performance management system. Majority of the interviewees responded to the corporate surveys implying that the subject was topic was especially exciting to them. Interviews gave insights on present and prospective business plans and direction. The survey also showed that specific focus across certain employee populations should be given. Six current hires from key competitors were also interviewed to comprehend competitor pay practices and compensation program structures. Further focus groups discussions and key information interviews enabled the taskforce’s to understand the needs of certain groups within Marshall & Gordon’s worker population. The survey culminated with the taskforce conducting interviews of 20 partners and principals togeth...
Evaluate the Performance and Reward model that the company currently uses in order to identify weaknesses and areas whe...
Reward and recognition has to be promoted for small and large achievements. An effective reward’s program keeps employees engaged, dedicated, and committed to the organization.
BSC Success Using the balanced scorecard approach Veolia was able to implement a system designed to help translate organizational strategy into something employees could understand and use. The purpose of the scorecard is to design to boost organizational performance, break down communication barriers between business units and departments, increase focus on strategy and results, budget and prioritize time and resources more effectively, and help the company better understand and react to customer needs. Veolia started in one area of the company, first with implementing the scorecard approach and then once it was successful there moved to another department. Veolia developed a training platform so employees would understand the balance scorecard approach. The training was online and kept short.
Reward strategy can be defined as a financial or non-financial reward an organization gives as a token of Favor for their labor accommodation offered to the organization. The components of a financial reward consist of simple pay, performance pay and employee benefits thus comprising of total compensation. Non-financial rewards include, holiday trips, large office, promotion, support, achievement responsibility and personal progression etc.
The foundation for effective job performance and compensation system can be traced to effective job analysis process. Fundamentally, a job analysis should consist of a thorough examination of the job 's duties and knowledge, skills, abilities, and qualities that are required in order to be successful in a specific position, upon which appropriate rewards or compensation can be determined. For many perspectives, jobs are usually made up of requirements and rewards, where rewards may be regarded as a major recruitment strategy for motivating potential employees in order to influence them to stay the organization for a longer period as well as enhance their performance. The most common or basic form of rewards which attracts employees is extrinsic
Johnson, Sam T. "Plan your organization’s reward strategy through pay for performance dynamics: Compensation & Benefits Review 30, Number 3: (May/June 1998): 67-72
The succeeding paragraphs will explain how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. In order to maintain their competitive edge, companies need to fully understand that as the needs of their employee’s change, so do their benefit plans. Companies need to find innovative ways of engaging employees that encourage and support their commitment and improve their performance. The first way is by helping the company attract and retain talent. A company is only as good as its workforce, so having an innovative benefit plan will help to attract high potential candidates and also retain them within the organization.
I agree with the student’s opinion that weekly homework and quizzes are a negative and direct incentive. Positive incentives, especially in learning settings, are usually not enough to encourage students to complete tasks in a timely manner. Students understand that if they do not finish the work assigned they will get a bad grade in the course, or maybe fail the course, which makes it an encouraging negative incentive. Even though gaining knowledge is the main goal when taking a course, the incentive most students focus on throughout the time in class is the negative and direct aspect of it. Since the work is completed weekly, these assignments might become a routine and more of a completion grade as time goes by.
Employee compensation and reward systems have undergone a couple of paradigm shifts since inception. Reward systems were traditionally compensation based and focused on the individual or the position (Beam 1995). After a recession in the early 1980's, employers turned to performance based models in an attempt to save money while still rewarding top performers (Applebaum & Shapiro, 1992). Today, the most successful organizations are using a total reward model, a hybrid of the performance based model combined with strategic human resource management planning to create reward systems that both benefit the employee and help organizations realize their operational goals (Chen & Hsieh, 2006).
Formalized compensation goals serve as guidelines for managers to ensure that wage and benefit policies achieve their intended pur¬pose. The more common goals of compensation policy include to reward employees’ past performance, to remain competitive in the labor market, to maintain salary equity among employees, to motivate employees’ future performance, to maintain the budget, to attract new employees, and to reduce unnecessary turnover. It is important for the organ...
Organizations are working hard in today’s world of business, not only to remain competitive, but also to focus on stability and structure. Employees are the backbone of an organization. It is becoming more important to offer quality HRM programs to staff, in order to support the retention of trained and experienced staff. Employees have always been concerned with salary however, there is a new focus emerging that looks at compensation as a whole entity. Monetary wages are now just as important as other benefits such as paid time off, medical and dental offerings and retirement. This paper will discuss the importance of the total compensation program which includes many aspects, not just salary. Attention must be paid to equal pay, pay