Features of an Effective Total Rewards Program - Essay Example

Features of an effective total rewards program Features of an effective total rewards program In a business organization, the sales and marketing department plays a crucial role in making sure that business runs smoothly. This is part of the organization that is in direct contact with the market. There is a need to treat this group of employees well in order to motivate them. This is done by having an effective total rewards program. This paper will describe some features of an effective total rewards program.

First, the plan adopted in an organization should be fair and equitable to employees. This implies that fair and equitable pay system should be put in place in order to compete effectively in the existing market. This system ensures that employees get paid according to their performance. Also, fair payment means that employees get the best value for the work that they do. Equitable payment relates to the ranks of the employees and so it should match their interests according to the organization structure.

Benefits that employees get should be competitive and should meet their personal needs. This can be achieved by offering economically feasible benefit plans that meet their needs at personal level. Rewarding also should be done in a fair way. Efforts made by employees to attain a certain goal should be recognized, this can be done by having a rewarding and recognition system that satisfies the employees. Also, the expectations of employees to grow and succeed should be met by the plan by implementing an appraisal process.

Employees should feel that pay is distributed fairly across the employee groups. Equity and fairness can be determined by communication between employers and the employees’ feelings about the pay they receive. In general, equitable pay leads to motivation and increased performance. (Philips & Edwards, 2009). Also, the plan should be positive. The employee compensation plan should be positive in the sense that both the employees and the employer are comfortable with the system or program.

The strategic and cultural characteristics of an organization influence a lot the different compensation elements such as work life, career development and recognition. These elements promote the positive look of the relationship between the employers and the employees. In return, this leads to an increase in business performance. Total rewards should not be looked at as just being compensation and rewards but they should lead to mutually benefit both the employer and the employee. The compensation plan should include elements like the base pay; which has the wages and salaries, variable pay with stock options, bonuses and incentives.

At the same time, it should include benefits such as insurance, paid time off, pension plans, work life support and educational support. The plan compensation scheme also involves performance management such as appraisals, setting of goals, human resource training and development. These are the elements that should be in the rewards program that will bring about a positive feeling in the employees. With such plans, employees will do their work with a lot of motivation . Thus, it will increase leading to the growth of the organization in general (Mathis & Jackson, 2011).

According to business psychology, compensation should also be paid as frequently as possible to encourage employees to carry on with their duties. When employees are paid in good time they tend to be comfortable since they have money to survive on. Thus, they work with a relaxed mind and do not divert their attention to other activities that will make them extra money to cater for their needs. Also, the compensation plan should not be changed at the whim of management should they deem that employees are doing more than expected.

If the commissions paid get higher, it means sales are also high. Therefore, management should not revise policies when they are going to pay high commissions. This will lead to low motivation and salesmen will not be willing to make sales beyond certain levels. That is why the program should consider honesty from the side of the employers. \ Reference McKenna, E. (2000). Business psychology and organizational behavior. East Sussex: Psychology Press. Mathis, L, R & Jackson, H. (2011). Human resource management.

Mason: Cengage Learning. Philips, J, J & Edwards L. (2009). Managing talent retention. San Francisco: Pfeiffer.