The Concept Of Total Reward (Essay Sample)

The Concept of Total Reward
Introduction
The concept of total reward is a strategy adopted by business organizations to offer employees financial, developmental, and beneficial rewards for achieving the organization's specific goals (Tsede and Kutin,2013). Such rewards include holidays, loans, pension, child vouchers, recognition, and many more. The approach combines the benefits, personal growth opportunities, and compensation within a motivating work environment. It states the benefits within the employment package and also supports the organization’s objectives and culture. This approach enhances the organization's performance because employees' work engagement is promoted and encouraged.
The approach focuses on equipping employees with a choice and a voice regarding the total reward offers and improving the psychological bond between the employer and the employee. It is a long-term approach that does not have to embrace all the monetary values to benefit employees and employers. It can be applied in a steady and simple which is by understanding what employees mostly prefer as a reward and communicating effectively. Non-monetary rewards are more likely to have a more significant impact on workers' motivation and satisfaction compared to monetary rewards. As indicated by the Career website Management Study Guide, non-financial rewards are essential for boosting workers' self-confidence and also help them find self-actualization and make them feel safer in their working environment. Total reward outlines financial and non-financial rewards that can help employers promote and enhance their reputation as the best workplace.
Discussion
For a total reward strategy to be fruitful, the organization must communicate its corporate objectives clearly and ensure managers engage and motivate their teams in their day-to-day activities. Total reward emphasizes all aspects of employee preferences. However, the base salary remains the critical foundation of the whole employment package, and it is the main reason employees join the organization. Employees need to perceive their base salary to be fair and equitable so that it will be easier to communicate the value of intangible rewards offered by the organization to improve the level of employee engagement and eventually increase productivity. (Watson,2012) argue that engaged employees are 20% more productive than average-performing employees. The in-depth studies done by the Institute of Employment indicate that employees leave 'managers, not organizations. The success of an organization is highly based on high-quality management that involves training, supporting, and motivating employees. Therefore, a total reward approach is more successful when managers fully engage and motivate employees on a regular basis. Employers should ensure a positive working environment that promotes trust and commitment, provides employees with self-growth and development, encourages workers to do a great job, and ensures the welfare and health of an individual and organization's effectiveness. The total reward is the best approach that can be used to communicate the available opportunities for employees.
A comprehensive approach that drives organizational change is required to design and implement a comprehensive rewards policy. Note it is important to take some valuable time and evaluate the potential risks employers could encounter in case the reward offers were poorly received. Would it affect employees' morale? Such risks are minimized by planning and involving workers and trade unions.
Developing and implementing total reward strategy
Developing a successful total reward strategy involves four steps.
Assessment is the first step, and it involves the assessment of the present organizational benefits and compensation system and how effective the systems are when it comes to attaining organizational goals. Activities that take place in this phase include surveying the employees on their views and sentiments concerning their pay, opportunities for growth and development, and benefits. The significant outcome of this phase is the assessment report that outlines the recommendation for the new total reward system. The assessment report contains the group of members eligible for the reward, values, and behaviors to be rewarded, the category of rewards that will work best, and the means the organization will use to refund the new total reward system.