Total Rewards Program Proposal Summary

docx

School

Southern New Hampshire University *

*We aren’t endorsed by this school

Course

200

Subject

Business

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by MajorStarlingPerson933

Total Rewards Program Proposal Summary Lucy Kelly Southern New Hampshire University HRM 200: Human Resources Functions Dr. Rae Durham December 4, 2023

Total Rewards Overview Most companies understand that they must care for their employees in more ways than just cash compensation if they want to create a strong work culture composed of loyal, productive employees. Companies usually offer a total rewards package, which includes an employee's complete compensation package, including salary or wages, benefits, and rewards (Noe, 2017). The purpose of total rewards is to create a culture where employees feel valued at work and to support employees in more than just their work. Total rewards increase employee productivity, improve employee retention, and attract top candidates (Noe, 2017). Total rewards are becoming more popular, since people want to work for a company where they feel they are cared about as a person and to work for a company that prioritizes their happiness, as well as their productivity. Total Rewards Package The components of a total rewards package are compensation, benefits, work-life balance, recognition and rewards, and career training and development (Turnea, 2020). Compensation includes salary and wages for hourly employees. Employees can be non-exempt, which means that they are able to receive overtime pay, or they are exempt, which means they are not eligible for overtime pay. Benefits include a wide range of services, but the most common or medical and dental insurance plans, a 401k savings plan, a health savings account (HSA), an employee assistance program (EAP), and paid time off (Noe, 2017). Sometimes employers will offer tuition assistance, legal counseling, store discounts, gym memberships, and other rewards. Recognition and rewards usually include things like bonuses, incentive pay, prizes or gifts, and they are usually performance based, whether for individuals or teams. Work-life balance is important now more than ever to employees. Companies can offer a hybrid work

system, allow for sick days and paid holidays, and can offer several types of counseling, such as financial, mental, and wellness counseling. These are ways to help improve employees’ lives outside of work. Career training and development is another key component of total rewards because employees want to know that they have opportunities to grow in their career field. They do not want to feel stuck, and so companies can offer skills training, certificates, development programs, and career planning. It is becoming increasingly important that total rewards packages be customizable by employees, since everyone has unique needs (Curcio, 2021). For example, some parents might prioritize childcare assistance instead of gym memberships, while someone who travels frequently might want discounts for certain airlines. Total rewards packages are an important part of how companies compensate their employees by treating them as a whole person, rather than as just a person filling a desk chair. Talent Retention Talent attraction and retention is essential to keeping hiring and training costs down. According to research, non-financial rewards such as learning and development, work life balance, and benefits significantly increase the attractiveness of a job, and they tend to be found even more attractive by female job seekers (Schlechter, 2015), so if a company is interested in hiring more women, they should look into increasing their non-financial reward components of their total rewards. Recognition and rewards are wonderful ways to attract employees and keep current employees. When employees are recognized and rewarded for superior performance, they tend to stay loyal to a company, but they also might post things on social media to show their friends how they were recognized at work. This promotes the company's brand and attracts new employees, while fostering a sense of pride in the workplace. After the Covid-19 pandemic, employers had to change the way the viewed total rewards

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

to stop employees from leaving. The pandemic put a lot of things into perspective for employees and they began prioritizing work life balance, especially after working remotely during Covid- 19. The trend known as The Great Resignation was an issue for companies after the pandemic, and to keep employees from leaving, they must now ensure they offer flexibility and better benefits (Lacey, 2022). Not only do total reward packages increase performance, but they reduce hiring costs by increasing employee satisfaction. Employee Value Proposition In exchange for providing the necessary skills for completing a job, employees are offered total rewards, and this exchange is known as an employee value proposition. However, the definition has evolved and now an Employee Value Proposition (EVP) is defined as an “ecosystem of support, recognition, and values” (Jouany, 2023). The EVP is a company's brand, as marketed to potential candidates and current employees. It should include a complete total rewards package and involve anything that a company offers its employees, while also encompassing the goals and culture a company values. For example, a company who values family life will offer childcare, after school programs, and additional maternity and paternity leave. A company who values environmental health and physical wellness would offer volunteer opportunities, gym membership, and counseling. People spend forty hours a week at their job, sometimes more, which is over thirty percent of their week. No one wants to work in a place where they do not feel valued or where they do not believe in the company mission. An EVP is essential to promoting employee engagement and satisfaction because otherwise, people become depressed, unhappy, and bored. Companies should provide a workplace where employees can live up to their full potential.

References Curcio, A., & Woods, A. (2021, July 27). Rethinking total reward strategies . Strategy business. https://www.strategy-business.com/article/Rethinking-total-reward-strategies Jouany, V. (2023, August 1). Employee value proposition: The complete guide to building a great EVP . Haiilo. https://haiilo.com/blog/6-steps-to-build-your-employees-value- proposition/ Lacey, L., & Barley, C. (2022, April 20). The future of total rewards: Flexibility to attract and keep talent . SHRM. https://www.shrm.org/resourcesandtools/hr-topics/behavioral- competencies/pages/the-future-of-total-rewards-flexibility-to-attract-and-keep-talent.aspx Noe, R. A., Hollenbeck, J. R., Gerhart, B. A., & Wright, P. M. (2017). Fundamentals of Human Resource Management (9th ed.). McGraw-Hill Education. Schlechter, A., & Bussin, M. (2015). Attractiveness of non-financial rewards for prospective knowledge workers. Employee Relations , 37 (3), 274–295. https://doi-org.ezproxy.snhu.edu/10.1108/ER-06-2014-0077 Turnea, E.-S., & Prodan, A. (2020). The Relative Influence of Total Reward on Retention of Human Resources. Revista de Cercetare Si Interventie Sociala , 69 , 79–95. https://doi- org.ezproxy.snhu.edu/10.33788/rcis.69.5

Total Rewards Program Proposal Summary

Related Documents