Write a 3-4 page report that answers the following questions:
1. Describe each of the top five (5) advantages of a total rewards approach.
2. Describe five (5) common ways a total rewards strategy can go astray.
3. Describe the six (6) steps in designing a total rewards program.
4. Describe the eight (8) steps in the communication process.
According to WorldatWork in the text The WorldatWork Handbook of Compensation, Benefits & Total Rewards (2007) the top five advantages of a total rewards approach are as follows (p.15-17): 1. Increased Flexibility
2. Improved Recruitment and Retention
3. Reduced Labor Costs/Cost of Turnover
4. Heightened Visibility in a Tight Labor Market
5. Enhanced Profitability
Increased Flexibility is companies recognizing the need to help and allow employees to integrate their lives with their work. Here in the United States (US) we get on average two weeks vacation and of that time we rarely use it all. One thing to note is that the vacation time and holidays that companies in the US give their employees is totally up to the company. This is what makes it such an advantage to their total rewards package. A lot of companies use vacation time and holiday time to attract and keep employees. This increased flexibility is tied to this time off because Americans are workaholics. We work too much, we don’t take the time we are allotted off, and when we do take off we tend to do work then too. The fact that the US does not delegate vacation time and holidays makes this an advantage to our companies. Whereas in many other countries they do designate an allotted amount of time off and holidays which their citizens typically take advantage of it. The below is a graphical representation of time off in other countries (http://thesocietypages.org/socimages/2010/01/31/paid-holidaysvacation-days-in-the-u-s-versus-other-oecd-countries/):
Increased flexibility to work from home or flexible work schedules rather than taking time off is very attractive to many US employees. Improved recruitment and retention is basically the package of rewards which is the complete benefits available to current and prospective employees. This is everything together that the company offers to make working their more attractive. Reduced labor costs/cost of turnover is another advantage to a company for having a total rewards package. It can become extremely expensive to replace an employee. The company has to find someone new for the position and then train that person. There are so many other costs that also need to be taken into account, like those listed in the WorldatWork Handbook (2007): “losses from customers and sales, as well as decreased efficiencies as productive employees leave and the remaining workers are distracted” (p. 16). Heightened visibility in a tight labor market is about companies really vying to keeping to keep the talent that they have by creating the most marketable and attractive total rewards program that will give various options to suit many employee desires. Enhanced profitability is all about companies cutting cost in their total rewards programs. Not to cut costs in a bad way but to cut costs in a way that will help them revamp their current system. This is a way of creating a stronger mix of programs available to employees that prove worth without having to add more of anything. According to WorldatWork in the text The WorldatWork Handbook of Compensation, Benefits & Total Rewards (2007) the top five common ways a total rewards strategy can go astray are (p.19): 1. Trying to re-engineer programs in pieces.