Total Rewards Strategy



Total Rewards Strategy

Introduction

In every organization, employees play a very strategic role. They are considered as the most important asset of an organization. They are the ones responsible for transforming the inputs (resources) into outputs by using their knowledge and skills. As human resource is considered to be the key for the achieving productive outcomes, they should be equally, adequately, and effectively compensated for the efforts they make. Their motivation is very important as it affects the productivity of an organization. Research states that there are two basic ways of motivating employee: monetary benefits and non monetary benefits. Monetary motivations as well as other types of motivations in the form of recognition and rewards are given by organizations in order to achieve higher productivity and performance (Toppo & Prusty, 2012, p. 2). However, traditionally motivational strategy or compensation strategies have been based on elements of financial reward. However, there are many cases in which these tactics have not been entirely effective to motivate, retain and attract good professionals, and to achieve the strategic objectives.

For this reason, there is a growing tendency to regard other elements of reward. Reward system including all elements is known as Total Rewards system. Management of an organization in order to achieve organizational objective need to design effective total rewards strategy. Employees need to be adequately and fairly compensated if the firm wants to motivate them for increasing their productivity. It is observed that seeking optimal productivity from and effective management of employees' performances has become a major source of concern for the current management of ABC organization. Therefore, in this paper we the researcher is going to design Total Reward system that eventually will be implemented to attract and retain talented professional. Initially we shall design a total rewards strategy for ABC Company, and then advantages of total reward strategy will be stated. In the end, the paper will determine communication component of total reward system and strategy for competitive pay structure. The purpose of this paper is to contribute to the existing knowledge base by adding new information. Furthermore, it will be helpful for the management in understanding and realizing whether their reward system is effective enough to attract and retain the best employees.

Organizational Brief

ABC Company is one of the most profitable telecommunication companies in the world. The company has 20,000 employees in 17 different countries. There are 2,000 management level individuals who speak a variety of languages. The company employs diverse individuals who are governed by multiple regulatory environments. The company has very diverse culture. The marketing spending of the company grew 38% over last year. In 2012, ABC Company invested nearly 7 times more amount of money as compared to the investment of 2005. ABC Company is already the most important telecommunication company in the world however; its competitors also maintain its target of double-digit growth. ABC Company believes that the power of dedicated and talented employee make a huge difference in the service delivered to ...