Total reward -Job Satisfaction - Literature review Example

of the Business of the Concerned June Total Reward- “Job Satisfaction” What is needed in a Reward Package to makeit Motivating? - A Literature Review To put it in a few words, Total Rewards pertains to all the tools that an employer has at one’s disposal, which could be used to attract, retain and motivate employees. Total Rewards approach takes into cognizance all the factors and attributes that are the direct outcome of an employment relationship, which are perceived by an employee to be of value (Fitz-Enz 2009, p. 113). The objective of the Total Rewards approach is to optimize the rewards offerings facilitated by an organization so as to yield the optimal results for the money spent on configuring and delivering awards (Fitz-Enz 2009, p. 276). This approach may involve an integration of a wide range of programs within an organization, which may not be directly perceived to be rewards by everyone (Fitz-Enz 2009). A wide range of practices that may involve enhancing the employee productivity by making the work hours more flexible, curtailing employee turnover by extending career advancement and training opportunities within an organization, making the management system within an organization more participative and interactive to encourage employee participation could be blended with the direct and indirect monetary compensation to yield maximal results from a reward system that is inherently bold and innovative (Fitz-Enz 2009). A Total Rewards approach do takes into consideration that the fact that when it comes to foster a workforce that is committed and motivated, the tangible reward forms and systems are important, but are certainly the be all and end all of a viable reward system (Fitz-Enz 2009). In that context, the question that deserves the attention of researchers is that why the reward approach has suddenly become very important in the contemporary context. One of the reasons for this is that there is a war for talent in the job market out there. Though going with the current economic meltdown and the recessionary trends, the labour market may have softened somewhat, still, employee retention has emerged to be a pivotal issue in many organizations (Jensen, Mcmullen &Stark 2007, p. 62). Companies do incur massive expenditure in training and grooming talent and hence attracting and retaining a staff that is experienced and skilled stands to be the top priority for many managers. With the compensation budgets getting more constrained, the competition to attract skilled and experienced employees has tremendously increased (Jensen, Mcmullen & Stark 2007, p. 62). To be able to cope up with such budgetary squeezes, managers need to delve on an assortment of tangible and intangible rewards and benefits to hold on to their employees. Then there is an enhancing focus on employee engagement (Jensen, Mcmullen & Stark 2007, p. 63). By making the jobs more rewarding and meaningful, the managers can encourage the employees to put in a discretionary effort so as to deliver better results (Jensen, Mcmullen & Stark 2007, p. 63). The challenging global environment is pushing the organizations to make the most of the human resources that they have at their disposal, and hence it has become essential for the managers to directly depend on their employees to perform and act in a way that is in consonance with the organization’s objectives, values and culture (Jensen, Mcmullen & Stark 2007, p. 63). The increasing diversity of workforce is one other reason necessitating a Total Rewards approach towards management (Jensen, Mcmullen & Stark 2007, p. 64). Globalization has given way to dilution of borders and has augmented the diversity within organizations (Jensen, Mcmullen & Stark, p. 64). Besides with women getting an enhanced access to education and career building opportunities, the participation and proportion of women within the workforce has increased (Jensen, Mcmullen & Stark, p. 64). Changes in social attributes and demographic aspects have also contributed to the workplace diversity (Jensen, Mcmullen & Stark, p. 64). With the relative fading of gender roles and expectations, both men and women are required to make changes and alterations in their career aspects to facilitate a propitious work-life balance (Hedge & Pulakos 2002, p. 135). The concept of retirement has also undergone an immense change. Many people view retirement as an opportunity to opt for a second career or to engage in telecommuting or part time work (Jensen, Mcmullen & Stark, p. 64). With the augmentation of diversity in the workforce, the employee expectations from work and career have undergone a tremendous change in response to their altering needs. Not all the employees have the same expectations from their jobs as not all the employees have similar career and domestic priorities and responsibilities (Hedge, Jerry & Pulakos 2002). Hence, the managers are definitely in the need of a much broader and more flexible approach towards rewards, so as to evince maximal commitment to a wider employee pool and to solicit enhanced employee engagement. Total Rewards approach towards management tends to bring within its ambit anything and everything that an employee aspires for and values in one’s work environment (Labedz & Berry 2011, p. 62). It is affiliated to an integrated HR framework and consolidates the employee-employer relationship in the context of a reward perspective (Labedz & Berry 2011, p. 62). Rather than resorting to insulated and isolated HR solutions, Total Rewards management opts for a more holistic approach that integrates varied rewards aspects like issues related to pay and remuneration, expectations related to the work environment and development and training related aspirations (Tyson 2006, p. 243). A more holistic Total Rewards approach is a natural evolution of and graduation from the more traditional reward approaches (Rumpel & Medcof 2006, p. 27). The traditional reward approaches happened to be rigid and focused in their perspective and visualized reward options more in their pecuniary aspects (Rumpel & Medcof 2006). The crux of the Total Rewards approach is to zero in on everything that an employee values in an organization one works, that is its focus is the overall employee value proposition (Rumpel & Medcof 2006, p. 27). Hence, in a Total Rewards approach, the list of the employee benefits may turn out to be very wide that may include direct and indirect and tangible and intangible financial rewards, social activities managed and financed by the organization, a promise of more elevated and benefitting career opportunities, and a range of varied other benefits and conveniences extended by the organization (Tyson 2006). However, while delving on the Total Rewards approach the thing that needs to be kept in mind is that every organization is unique in its framework and objectives and also every employee happens to be unique in one’s expectations, needs and aspirations (Tyson 2006). Hence a viable reward management policy simply could not be affiliated to a one size fits all framework (Tyson 2006). Hence the variables that the experts and academicians tend to include in a Total Rewards framework tend to differ from one organization to other. In a broad perspective, there are five elements that are included in a Total Rewards framework that include within their ambit varied facets, programs, practices and approaches aimed at attracting, retaining and motivating employees (The Total Rewards Association 2012). One salient element happens to be compensation that includes the fixed pay, variable pay dependant on an employee’s levels of performance, the short term incentive pay aimed at impacting performance over a definite period and the long term incentive pay aimed at influencing performance over a long period of time (The Total Rewards Association 2012). Benefits happen to be one other important element that comprises of legally mandatory benefits like various types of insurances, health and retirement benefits, retirement benefits and pay for the periods in which an employee had not worked like vacations, sick leave, maternity leave, etc (The Total Rewards Association 2012). Performance and recognition related rewards tend to focus on an employee’s contribution to the organizational objectives and cater to the career related psychological needs of the employee (Cooper, Dyck & Frohlich 1992, p. 471). These may include performance reviews and evaluations, performance planning sessions; various types of rewards aimed at recognizing the short term and long term contribution of an employee and varied suggestion programs (The Total Rewards Association 2012). In the current times when the job scenario is getting bleak, especially in the developed Western economies, development and career opportunities tend to be a quiet important element in any Total Rewards framework (Hedge & Pulakos 2002, p. 135). They allow the employees to augment their capabilities and skills and to further their career associated aspirations and goals (Hedge & Pulakos 2002). These may include a range of learning opportunities like corporate scholarships, skill enhancement programs and workshops, seminars, conferences, simulation platforms, coaching and mentoring programs and opportunities, and various types of advancement opportunities that may include internships, apprenticeships, promotions, postings, and job rotations (The Total Rewards Association 2012). Organizations are fast recognizing that a smooth home and social life advances the employee productivity. That is why they are evincing an increasing support for work-life balance effectiveness that may involve offering a flexible workplace environment, initiatives that promote wellness and health, incentives for supporting dependants, financial support aimed at helping employees take care of their financial responsibilities in a stress free manner, and encouraging employees to resort to a creative and salubrious use of their unpaid and paid time off (The Total Rewards Association 2012). This is done through a range of programs, incentives, policies, measures and initiatives. The organizations are fast realizing that trained and experienced employees happen to be a viable strategic asset. Besides, the need for increasing employee participation and the ever enhancing diversity in the work force is forcing the organizations to resort to a wide range of measures aimed at attracting, motivating and retaining employees. Total Rewards approach is the answer to the HR needs and aspirations of the contemporary organizations and institutions. It takes a holistic approach towards employee rewards and incentives and tends to touch all the elements associated with the organizational work environment that are deemed to be of value by the employees. Reference List Cooper, Christine L, Dyck, Bruno & Frohlich, Norma 1992, ‘Improving the Effectiveness of Gainsharing: The Role of Fairness and Participation”, Administrative Science Quarterly, Vol. 37, no. 3, 471-473, Fitz-Enz, Jac 2009, The Roi of Human Capital: Measuring the Economic Value of Employee Performance, AMACOM, New York. Hedge, Jerry W & Pulakos, Elaine D 2002, Implementing Organizational Interventions, San Francisco, Jossey Bass. Jensen, Dough, Mcmullen, Tom & Stark Mel 2007, The Manager’s Guide to Rewards, New York, American Management Association. Labedz, Chester S & Berry, Gregory R 2011, ‘Making Sense of Small Business Growth: A Right Workforce Template for Growing Firms’, Journal of Applied Management and Entrepreneurship, Vol. 6, no. 2, 61-63. Rumpel, Steven & Medcof, John W 2006, ‘Total Rewards: Good Fit for Tech Workers’, Research Technology Management, Vol. 49, no. 5, 27-29. The Total Rewards Association 2012, What is Total Rewards?, The Total Rewards Association, viewed 1 June 2012, . Tyson, Shaun 2006, Essentials of Human Resource Management, Oxford, Butterworth- Heinemann. Read More