Total Rewards

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Many people may think only how the information technology industry has evolved, with little or no thought about the transformation of other professional areas in today’s society. This trend includes organization providing “Total Rewards” compensation for employees. Furthermore, this conversion, now is an extremely intricate factor for recruiting, motivating, and increasing employee retention. Employers now realize the importance of providing total rewards along with wages and salaries is a path to recruit and retain valuable employees. Therefore, a strategic plan for total reward has become enormously beneficial for organizations to beguile the most talented (high performers) employees in their realm of industry. Although salary has always …show more content…

The main company’s brand (Pepsi-Cola, Tropicana, Gatorade, Frito-Lay, and Quaker) contribute to $1 billion in gross sales globally (PepsiCo, 2017). PepsiCo understands to retain and recruit top level employees, the company must stay competitive by virtue of providing an alluring total rewards package along with competitive wages and salaries. PepsiCo commitment to both current and future employees states, “At PepsiCo, we provide more than salary.” (PepsiCo, 2017). Therefore, the company offers the following total rewards …show more content…

Market-base configuration pay parallels with external procedures for job with the same and comparable job descriptions and qualifications within its realm of industry. However, PepsiCo should consider restructuring front line employees from commission to performance pay. Performance pay will pay employees based upon experience, skills, and any other unique abilities. Furthermore, this pay structure will also provide an incentive for employees to meet or surpass the company’s sales goals. However, the company also has to remember what is comparable in each geographic area. Additionally, managers for route drivers and sales department, PepsiCo should consider strictly a performance pay plan. While it may not be feasible for the company to make a transition for all personnel (hourly) in the operations department to performance pay, consideration for managers (salary) to transition to performance could become beneficial. Again, managers can encourage and motivate their employees to become more efficient and productive. Executives’ pay structure is already strictly on performance pay and should remain the same. The chart below (Figure 3) displays the recommended total compensation

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