The aim of this paper seeks to examine the concept of total rewards in the process of increasing prominence in organisations. Total Rewards is best described as a business strategy that “includes financial and non-financial complementary elements designed to recruit, develop, retain and motivate employees”(OSP 2003). “Employees working for a total rewards employer tend to be more motivated, productive, and happy”. (eHow 1999) As a result is “the business thrives”(eHow 1999) and prominence. In this paper, I will following this concept to explore more detailed of effectiveness total reward in the organisation prominence.
The concept of rewards has developed over the time to represent more than just to pay cheque an employee at the end of the month. The concept of total rewards was emerged in the 1990s as a new way of thinking about the deployment of compensation and benefits, combined with other tangible and intangibles ways that company seek to attract best people.(Richard val del Walt 2010) As defined by Manus and Graham (2003), total reward ‘includes all types of rewards-indirect as well as direct, and intrinsic as well as extrinsic’. (Michael Armstrong 2006) The direct reward is what an employee receives from the employer in bank account such as base wage, bonuses, commission. Indirect rewards, often called “benefits” refers to that part of the total reward package in addition to direct pay, such as health & life insurance cover, retirement & pension plans, health care, company car and mobile phone (Koala Consulting and Training 2008). “There are extrinsic rewards, which cover the basic needs of income to survive (to pay bills), a feeling of stability and consistency (the job is secure), and recognition (my workplace values my skills). On the other hand, there are intrinsic rewards, the most important of which is probably job satisfaction, a feeling of completing challenges competently, enjoyment, and even perhaps the social interactions which arise from the workplace”. (Koala Consulting and Training 2008) The ability link and balance all aspects of rewards together helps organisations achieve the motivation, commitment, engagement and development of employees. The consequence is profitability, efficiency and prominence in organisation. The most companies who use the total reward strategy simply mean to provide “benefits and a positive place to work” (Patricia K. Zingheim and Jay R. Schuster 2002), but “this makes a company attractive to the workforce in general but perhaps not to those who will make enterprise prosper. The companies need to fashion workplace to be attractive to people who are wanted to adding value to the business”. (Patricia K. Zingheim and Jay R. Schuster 2002) To increase prominence and efficiency in organisations is responsible equally as an employer, as employees. The employer responsible to creates an atmosphere in which the best people will want to work in company. “It is true that the best people will work more than pay”. (Patricia K. Zingheim and Jay R. Schuster 2002). The total rewards scheme concept is simply about the creating an atmosphere by financial and non-financial benefits given to employees in trade for their service, time, abilities and their efforts to support the company. The “top talent” (Patricia K. Zingheim and Jay R. Schuster 2000) wants to work for the company provide better workforce deal that involves the four total rewards components. The compiling future is important for the employees, because they want to “be able to draw self-esteem and satisfaction from working in the organisation. Employees want to feel that the organisation has optimistic and positive vision, direction and growth of the future and a set of values that they can support”.(Employement studies [n d]) The company that focuses on individual growth gives opportunity an employee for training, coaching and personal development. (Patricia K. Zingheim and Jay R. Schuster 2002) Also,...
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