Total Reward System

Total Reward System

Introduction

A total reward system is a contemporary and up to date employee compensation strategy that entails in it the combined and holistic view of the employee benefits, compensation and the rewards. As the work force and labor become more and more diverse as well as demanding and sophisticated, it is becoming an important part of the organizational strategy to make the work place more attractive with good working environment. Moreover, the workforce and labor are also becoming more competitive and the competition for the best employees is becoming a trend, and so the organizations also need to build the firm environment as the exceptional career opportunity. The implementation of the total reward system can also help the firm to gain the best available talent in the market and reduce the employee turnover of the firm.

Company Requirements for Total Reward System

The firm currently has a pool of about 20,000 employees and is operating in 17 different countries over the globe. Apart from this there are about 2,000 managers in all the different countries in which the firm operates. The workforce of the firm is very diverse and the major reason that the firm requires the total reward system is that there is a vast difference between the priorities and the satisfaction level of the employees. This is turn due to different cultural backgrounds from which the employees belongs. That is why it is important for the firm to introduce the total reward system. The Reward system should be developed to influence the domination of the cultural value which in turn may create balance in the life of the employees (Thoronton, 2004).

It is not easy for the mangers to maintain and high impact and globally dispersed teams. Apart from this it is also not easy to maintain and create a reward system for the globally dispersed employees. The reason being, the same, that is the change in the cultural values and practices that are preferred in those countries. The teams and employees in different countries brings in the numerous amount of resources into the firm from different sources of their countries which eventually benefits, the firm as a whole in terms of its profits, revenues and sales. Due to this reason the manger needs to understand the vast difference in the working styles of the different cultures and countries, the goals that motivate the different people in the firm and the expectations that the employees of the different countries and cultural backgrounds have from the firm. The cultural norms and the values of the employees should also be respected by the managers and the organization (Nelson, 2010).

The total reward system is essential to the organization because the firm needs to have a better understanding with its employees that will turn its employees on and will benefit the firm as well as the employees producing the win-win situation. The firm deals in the service business, so it is also important to retain the employees especially those who provide the ...