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 spent, employee appreciation and engagement. To gain the highest return on investment, Total Rewards Managers need to consider rewards that will drive behavior (contingent rewards) and the rewards that are going to set them apart from the competition (differentiators). As a Total Rewards Manager, you need to know what is going to motivate the workforce. It is important to deliver the right amount of rewards, at the right time, for the right reason. Key considerations for the Total Rewards Manager include: economic, geographic, political and regulatory factors outside the organization along with business goals, needed workforce capabilities, and performance metrics inside the organization which all affect the human capital and business decisions.
Employees seek three key components from their employment: compensation, benefits and work experience. Employees expect benefits such as health care when joining an organization. Benefits like health care are also considered a motivator for staying with an organization. Employees seek the opportunity to learn, grow and advance in their careers. This is seen as a future value of staying with an organization or not. Some employees will forgo a higher salary or better set...