Total Rewards: Strategically Achieving Business Results
Total Rewards reflects what employees’ value from its employer. It focuses on five elements that attract, motivate, and retain the talent to achieve business goals. These elements are: Compensation, Benefits, Work- Life, Performance and Recognition and Development and Career Opportunities (WorldatWork, 2007, p. 4). This paper describes the five advantages of a total rewards approach, five ways a total rewards strategy can go astray, six steps involved in the design of a total rewards program and eight steps involved in the communication process of a total reward program (WorldatWork, 2007, p. 15-64). Finally, the paper will summarize the components and the results of an effective design, implementation and communication strategy and result of a successful total rewards program.
Total Rewards: Integrative Elements to Achieve Business Results
One advantage of a total reward package is increased flexibility. Flexibility allows business’ to develop programs that cater to the needs of its employee by combining transactional and relational awards, allowing the reward package to meet the different emotional and motivational rewards of employees (WorldatWork, 2007, p. 15). Improved recruitment and retention is another advantage. Highly skills employees are in demand and, companies must find ways to attract and retain high performers. A comprehensive rewards package highlights the organization’s commitment by showing the total value of the reward package. This commitment provides a competitive advantage to prospective employees as well as those employees contemplating leaving the organization (WorldatWork, 2007, p. 16).
Total rewards help reduce labor costs and the cost of turnover by promoting employee engagement and reaffirming trust within the organization. Employees, who feel valued and engaged develop a sense of loyalty
References: WorldatWork. (2007). The WorldatWork Handbook of Compensation, Benefits, & Total Rewards. Hoboken, New Jersey: John Wiley & Sons, Inc.