Total Reward System Case Study

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Introduction To effectively subsist in the contemporary world , Companies have embraced the total rewards system and made it part of human resource management practice with small and big organizations employing it to enhance their competitiveness in the local and global markets. First introduced in 2000, the total reward theory shows the vibrant relationships that employers have with their employees. However, "WorldatWork - Total Rewards ModelTotal Rewards Model SVG Graphic",( 2016) states that ; this concept has developed to describe means through which employers and employees benefit from each other as well as how external and global business environment influence the productivity , retention and engagement at work .
Elements to …show more content…

It refers to fixed and variable monetary payments made by employers to their employees for services delivered. The Walt Disney company is an example of an organization that has put in place a total rewards system whereby compensation is a component. The company makes employees understand what their pay both base and others are. In addition The Walt Disney company has broadened its reward strategies beyond money and one of the non-monetary compensation that is part of the current reward system is benefits. Benefits are packages of programs that employers offer employees in addition to compensation, generally with an aim of ensuring security for the employees and their families. Benefits come in various forms including; health insurance , savings and retirement programs, and income protection. Besides compensation and benefits, most employees work longer for an organization that appreciate their input through recognition.
Recognition
Recognition is the simple acknowledgment or paying keen interest to what employees are doing. An organization like The Walt Disney Company has instituted formal and informal mechanisms of identifying and supporting employees with exemplary performance or innovation that is likely to move the company to success.
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According to Jiang, Xiao, Qi, & Xiao, (2009): Introducing total reward strategy probably improves not only employees ' work efficiencies, job satisfaction and job performances but their psychological contract and organizational citizenship behaviors. Because of this effective management method, organizations have more channels to acquaint with employees ' work life and other needs; in other way round, the personnel can keep positive attitude towards the organizations, . . . (Pg. 180)
Therefore, attractive total rewards make happy employees and ultimately works towards the success of the company.
Challenges of balancing a global workforce and the aspect of external

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