Why Total Reward Is Important
Why a Total Reward Program is Important
As the labor force becomes more highly developed and demanding, rivalry between organizations for talented employees is drastically increasing. It is extremely important that organizations make their company more enticing as an incomparable career opportunity. Instituting a total rewards system into an organization can do much to help it invite the paramount talent available and significantly condense turnover. The longevity of an organization’s employees is contributed to its total reward system. According to Heneman (2007), total rewards is defined as all of the tools, whether intrinsic or extrinsic, offered to the employer that may be employed to attract, motivate and retain employees. This could be monetary or non-monetary remuneration which includes not only compensation and benefits as well as personal and professional growth opportunities and a motivating work environment.
Often times in the retail industry, especially among women consumers, shoppers will often times see a garment and it is sized “one-size fits all”. If the average female shopper buys the garment, they will soon discover “one-size fit all does not really fits all or it is not the fit they prefer. The tag should read “one-size fits most” instead of “one-size fits all”. If a garment sized this way does not always fit every consumer perfectly as initially planned, do you think a one-size fit all reward program fit all employees in the business industry? Because consumers comes in all shapes and sizes, the clothing retailers commonly offer an assortment of sizes, rather than a plethora of "one size fits all" garments. Organizations can learn a lot from the retail industry if they too would realize a total rewards package is being offered to a number of employees with different wants and needs and the "one size fits all" approach does not work when it comes to attracting top talent. Just as the clothing retailers realize to be successful they have to
As the labor force becomes more highly developed and demanding, rivalry between organizations for talented employees is drastically increasing. It is extremely important that organizations make their company more enticing as an incomparable career opportunity. Instituting a total rewards system into an organization can do much to help it invite the paramount talent available and significantly condense turnover. The longevity of an organization’s employees is contributed to its total reward system. According to Heneman (2007), total rewards is defined as all of the tools, whether intrinsic or extrinsic, offered to the employer that may be employed to attract, motivate and retain employees. This could be monetary or non-monetary remuneration which includes not only compensation and benefits as well as personal and professional growth opportunities and a motivating work environment.
Often times in the retail industry, especially among women consumers, shoppers will often times see a garment and it is sized “one-size fits all”. If the average female shopper buys the garment, they will soon discover “one-size fit all does not really fits all or it is not the fit they prefer. The tag should read “one-size fits most” instead of “one-size fits all”. If a garment sized this way does not always fit every consumer perfectly as initially planned, do you think a one-size fit all reward program fit all employees in the business industry? Because consumers comes in all shapes and sizes, the clothing retailers commonly offer an assortment of sizes, rather than a plethora of "one size fits all" garments. Organizations can learn a lot from the retail industry if they too would realize a total rewards package is being offered to a number of employees with different wants and needs and the "one size fits all" approach does not work when it comes to attracting top talent. Just as the clothing retailers realize to be successful they have to
References: Egan, J (2011). Strategic reward and total reward. January 2011. Retrieved from http://www.cipd.co.uk/hr-resources/factsheets/strategic-reward-total-reward.aspx Heneman, R. L. (2007). Implementing TotalRewards Strategies: SHRM Foundation’s Effective Practice Guidelines Series Benefits Package. September 21, 2006. Retrieved from http://www.preceptgroup.com/company/news/article.aspx?prpri=99.standard Smith, G. P. (2008). Recruitment and Retention Strategies: How to Attract, Keep and Motivate Today 's Workforce WorldatWork. (2007). The WorldatWork handbook of compensation, benefits, & total rewards Hoboken, NJ: John Wiley & Sons