Total Rewards System Proposal - Essay Example

Total Rewards System Proposal Brief overview of the total rewards system of Envision Envision is an Information Technology (IT) based company. The company is a profit organization that successfully employs 20000 employees across 17 different countries. There are 2000 individuals in the management level who speak a diversity of languages (Dixon, Hayes & Stack, 2004). The company employs diverse individuals who are governed by multiple regulatory environments. The company is interested to increase the reputation in the market by adapting to the total rewards program (TRP). The adaptation of the TRP can help it to measure and manage the performance of the employees suitably. The success of the organisation can strongly be influenced by the introduction of the performance management programs. Envision expects that with the introduction of the TRP system employees of the organisation would be able to relate to their target in a better manner. The performance management system can help the process of total reward system (Dixon, Hayes & Stack, 2004). It can aid the establishment of the right standards of performance of the employees. After analysis of the performance of the employees it would be easier to measure their ability to fulfil targets. Envision can judge the performance of the company and reward the employees in cash or kind. Analysis of the concepts of total reward system Reward can be described as an element of compensation and benefit. The term total reward includes aspects like development and learning opportunities for employees, attractive work environment along with pay and benefit packages (Dixon, Hayes & Stack, 2004). It is strategic approach to reward used by many employers. The concept of total reward system is adapted by organisations to recruit, motivate and retain the employees and secure the business objectives efficiently. The introduction of the total reward system can help Envision to motivate the employees in a positive way. Measuring the performance of the employees and rewarding them for the same, both monetarily and in the form of benefits can help the organisation to reach the business objectives effectively. Besides the monetary rewards, the non monetary rewards like rent free accommodation, conveyance allowance, educational allowance and medical facilities can be given by Envision to the employees. This can increase the loyalty and motivation levels of the staffs towards the company. Objectives of Total reward system There are number of objectives which Envision wants to fulfil by carrying out the total reward system programs within the organisation. Compensation or total reward system is an important tool for organizational success. The success of any company is strongly influenced by the employees and the motivation rewarding programs. A reward program addresses and recognizes needs of the sales force enhances their attitudes and productivity (Tetrick & Haimann, 2014). Reward programs have the capacity to encourage the sales force to attain high levels of performance and achieve sales goal of the organization more efficiently. Such positive measures enhance the morale of the employees and motivate them to cater to the needs of a large number of clients. Employee benefits have the potential to improve retention rate of sales force and increase the feeling of economic security (Tetrick & Haimann, 2014). The best way to achieve commercial success and gain profit is through employee compensation both in cash and kind. The cash benefits include wages and salary, while benefits in kind include fringe benefits and perquisites (Malik, Butt & Choi, 2014). In recent times every organization requires to adapt the employee rewarding programs for a long run success. Envision, a service-based profit making organisation wants to adapt the total rewards program for increasing the efficiency and productivity of the employees. The company can provide competitive, simple and sustainable rewards to the staff, which can help to build trust and loyalty amongst the employees and increase their retention rate. Envision expects to increase the morale of the staffs and their retention rate at the same time through the introduction of the total rewards program. The major objectives behind the total reward system of Envision can be explained as follows (Tetrick & Haimann, 2014): 1. Recognise the performance of teams and individuals in an effective and timely way. 2. Motivate the employees to work towards the fulfilment of individual and organisational goals. 3. Decrease the rate of employee turnover. 4. Attain the goals of the company more efficiently. 5. Increase the overall competitiveness of the company through the competitive reward system. 6. Satisfy the safety, security and the self actualisation needs of the employees. These are the primary objectives that Envision can accomplish through the introduction of the total reward system. The company can reach the organisational goals more swiftly if the objectives are fulfilled without any hiccups. Key elements of the total reward system There are various elements of the total reward system. An effective total reward system enables the employees to satisfy their psychological needs besides the monetary ones. The non-monetary rewards like compensation, benefits; recognition enhances the work life experience and provides the opportunities of career development (Tetrick & Haimann, 2014). The non monetary benefits that Envision can offer its employees can be explained as follows: Compensation- Envision should offer the employees various forms of compensation for the services offered by them. The skill and effort of the employees needs to be recognised in the form of monetary as well as non-monetary benefits. The benefits can create more motivation among the employees and help them to work diligently (Tetrick & Haimann, 2014). Work life Strategy- The work life strategy can be utilised by Envision. The strategy consists of a detailed set of organisational policies, practices, programs and philosophy which supports the effort to help employees attain success at work and home (Malik, Butt & Choi, 2014). Through the usage of this strategy, Envision can address the major intersection of the employees, their family, community and workplace. Benefits- Envision should provide several benefits to the employees to supplement the cash compensation that is received by the employees. These programs can protect the employees and their families from financial risk (Humayun, et al., 2014). Performance - Envision can access the organisational, individual and team performance to understand the amount of accomplishment by all these factors and the way the achievement is attained. Performance involves the alignment of the effort toward the achievement of the goals and organisational success (Gupta & Shaw, 2014). Recognition- It can be described as the acknowledgement and attention given to the efforts of the employees. Recognising the performance of employees can increase their morale Therefore, Envision should recognise the performance of their employees to meet their psychological need for appreciation. Development opportunities- The total reward system of Envision can engage the emplyees to perform better and help the organisation reach its goal more smoothly. Career opportunities- Internal opportunities like promotion within the organisation can help Envision to retain the talented employees. The advancement of the employees to more responsible positions can help in the development of the career opportunities (Armstrong & Taylor, 2014). These are the few components of an effective total reward system. Envision should take these components into consideration for satisfying the needs of the employees. Strategy to incorporate a competitive pay structure A successful total reward system should not add to the cost of the company (Armstrong & Taylor, 2014). Similarly, the strategies followed by Envision to carry on the total rewards program must not add to the cost of the company. The pay structure of Envision should be framed in a manner that it does not reduce the profitability of the company. The employees of Envision should be paid a salary which is more than the industry average besides providing perquisites like transport allowance, house rent allowance, educational allowance, pension and insurance to all the experienced employee (Tesco, 2014).. The new employees should be paid a high rate of salary. As the salary paid by Envision to new employees will be quite high than the competitors it would be easy for the company to attract a large number of applicants towards the company. Envision can balance the excess cost associated with compensation, by only paying the same to the existing employees and not the new ones. Instead the new employee can be given easy promotions to higher job orders based on their work. This can act as a suitable way of compensating the new employees. Conclusion Employees that are targeted with the compensation plans can feel more motivated towards Envision. Rewards can boost the morale of the employees and help them to work towards the fulfilment of organisational goals. They can show more productivity and flexibility. Therefore, every compensation plan of Envision should include proper payment of incentives, right promotions and other such benefits so that there are least turnovers and high performance of employees. Besides that, the perquisites and benefits can easily satisfy the safety, security, belongingness and self actualisation needs of employees. Formation of right compensation plan can help the Envision to utilise the talent of the employees effectively. References Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers. Dixon, M. R., Hayes, L. J., & Stack, J. (2004). Changing conceptions of employee compensation. Journal of Organizational Behavior Management, 23(2-3), 95-116. Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), 1-4. Humayun, F., Zaheer, A., Basit, A., & Akber, S. (2014). Job Satisfaction of Employees in Banking Sector. European Journal of Business and Management, 6(17), 178-185. Malik, M. A. R., Butt, A. N., & Choi, J. N. (2014). Rewards and employee creative performance: Moderating effects of creative self‐efficacy, reward importance, and locus of control. Journal of Organizational Behavior. Tetrick, L. E., & Haimann, C. R. (2014). Employee Recognition. Workplace Well-being: How to Build Psychologically Healthy Workplaces, 161. Tesco (2014). Vision and Strataegy. Retrieved from http://www.tescoplc.com/index.asp?pageid=12 Read More