Total Rewards
Total Rewards: To Infinity & Beyond
Motors and More, Inc. – A Path to Success
Jerry Moton, Cassandra Reeves, Faye Singh & Mike Wasilchin 5/31/2014
Table of Contents
Total Rewards Strategy
Total Rewards Strategy
Benefits Provided at Motors and More Inc. Currently Motors and More employees receive only statutory employment benefits. Statutory benefits are Social Security, workers’ compensation, unemployment compensation and FMLA leave. Social Security provides retirement and disability income and can supplement unemployment insurance. It is funded by equal contributions between the employer and the employee. Workers’ compensation covers medical costs and employee pay if the employee is unable to work due to a job related illness, injury or disability. It is paid for by the organization.
Unemployment compensation provides income to employees who lose their jobs. The employer pays for unemployment compensation based on the organization’s location and history of terminations and layoffs. Finally, the Family Medical Leave Act requires employers with 50 or more employees to allow employees to take up to 12 weeks of unpaid leave during a 12-month period for narrowly defined personal and family health issues. The Act ensures that the employee can return to the same position or one of equal status and pay. In addition, the Act requires employers to maintain employee’s health coverage (McCain, p. 17). The above mentioned benefits are required by law and must remain a component of Motors and More Inc.’s benefits package.
An effective total reward strategy can help mitigate the high turnover rate Motors and More Inc. is experiencing. Some concerns of employees have been the lack of competitive pay and benefits, no career path, and perceived unfairness in rewards distribution. This has, in part, contributed to the high turnover rate in this organization. Our goal is to build a total rewards packages that reduces this turnover rate, but
Motors and More, Inc. – A Path to Success
Jerry Moton, Cassandra Reeves, Faye Singh & Mike Wasilchin 5/31/2014
Table of Contents
Total Rewards Strategy
Total Rewards Strategy
Benefits Provided at Motors and More Inc. Currently Motors and More employees receive only statutory employment benefits. Statutory benefits are Social Security, workers’ compensation, unemployment compensation and FMLA leave. Social Security provides retirement and disability income and can supplement unemployment insurance. It is funded by equal contributions between the employer and the employee. Workers’ compensation covers medical costs and employee pay if the employee is unable to work due to a job related illness, injury or disability. It is paid for by the organization.
Unemployment compensation provides income to employees who lose their jobs. The employer pays for unemployment compensation based on the organization’s location and history of terminations and layoffs. Finally, the Family Medical Leave Act requires employers with 50 or more employees to allow employees to take up to 12 weeks of unpaid leave during a 12-month period for narrowly defined personal and family health issues. The Act ensures that the employee can return to the same position or one of equal status and pay. In addition, the Act requires employers to maintain employee’s health coverage (McCain, p. 17). The above mentioned benefits are required by law and must remain a component of Motors and More Inc.’s benefits package.
An effective total reward strategy can help mitigate the high turnover rate Motors and More Inc. is experiencing. Some concerns of employees have been the lack of competitive pay and benefits, no career path, and perceived unfairness in rewards distribution. This has, in part, contributed to the high turnover rate in this organization. Our goal is to build a total rewards packages that reduces this turnover rate, but
References: Byars, L.L., & Rue, L.W. (2004). Human resource management, 7th edition. New York: McGraw Hill/Irwin. Henderson, R.I. (2006). Compensation management in a knowledge-based world, 10th edition. New Jersey: Pearson Prentice Hall. Kushner, G. (June 2010). Now it’s employer’s turn. The health care reform law will Reshape your benefits agenda, starting this year WorldatWork. (2008). Total rewards model. Retrieved June 2, 2010, at www.worldatwork.org/waw/adimLink?id=28330. U.S. Bureau of Labor Statistics. (2010, March 10). Employer costs for employee compensation