Rewards System
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Introduction
In order to determine the performance of a business as well as the staff or employees contribution to the business a reward system criteria should be used. By implementing a properly equated and overseen reward system can go about to allow a great deal of motivation to induce workmanship of quality and staff performance. The staffs of a company; no matter where they are located or what activity they contribute look to recognize certain activities which could result in rewards. Many of the rewards that employees expect are tangible items; however, intangible items used as rewards also pay back well to many organizations that utilize emotional motivational inducement systems.
The paper will begin by creating, organizing and managing a total rewards system for a insurance company. Within the paper it will specify the certain requirement for the total reward system for the company. After highlighting the requirements, a competitive strategy will be formulated and then thoroughly explained. The communication plan of the strategy will also be included due to its importance to the main strategy. Lastly, a strategy for developing a competitive pay structure will also be mentioned in the paper.
Company Requirements for Total Reward System
The company that is being analyzed is AXA, a holding company which is providing several services such as financial protection, asset management services, and insurance. The company employees an estimate total of 103,000 employees with operations running in Europe, North American, and Asia Pacific (The Datamonitor Group, 2011). AXA is known to hire individuals that hold a diverse background that have been directed by numerous regulatory environments. Within the company there are about 2,000 management-level employees that have the ability to speak several diverse languages.
AXAs main source of strength is with its human competencies. The company holds a string belief that in order to provide quality of service in the market it needs employees that are talented and dedicated to their work. AXAs main goal is to gain a higher preference in the marketplace from its customers, shareholders, and especially from their employees. The core or focal point of the companys purpose is their employees. Therefore, the company AXA is determined to develop a collective success surrounding to focus on a relationship that mutually satisfies the needs of both the company and the employees.
The criteria for the total reward system that needs to be included in the strategy are as follows:
It motivates and empowers the staff which allows them to continuously look and implement improved ways/techniques to execute their job in order to achieve maximum.
The company should be competitive in the job market in order to recruit the cream of the crop workforce. The expectation that is towards employees is performing at very high standards by creating a target to exceed the expectations of customers.
The company wants to build a culture of learning that is able to promote individual development, acceptability of change, willingness to learn, and expert mobility.
Recruit employees that value people and their diversity, respect and share information to others. As well as employees that share knowledge and viewpoints to aid other colleagues in succeeding.
Have employees that act in accordance to the values set by the company in adherence to innovation, team spirit, integrity, expediency, and professionalism.
Total Rewards Strategy that includes Compensation and Regulatory Environments
Organizational success can be driven by a well coherent compensation philosophy that can be done by bringing into line pay and other rewards with the companys business strategy. A coherent compensation philosophy provides a strong base for a design plan, administration, and secures the present and future plans of the companys culture and values (Kaplan, 2006). According to AXA the foundation stone of the companys compensation philosophy is recognizing and rewarding achievements of their employees. The main mission of the company is to magnetize, choose, place and promote every individual that is based on their laid criteria. AXA strongly believes that their compensation packages are performance based and aids in attracting talented individuals as well as retaining them in the company which leads to the employees development. Additional to the base pay that the company gives; which is based on the conditions of local markets and is target to be above market standards. The company also provides potential compensation to rewards performance, which is as follows:
Increases in Annual Merit
Annual Promotions
Annual Spot Bonuses
Short-Tern Incentives
Long-Term Incentives
All the listed compensations are eligible to exempt and non-exempted salaried employees. The compensation program that has been designed needs to follow certain laws that are developed to provide complete fairness in how the staff is paid, this makes it necessary for the company to adhere to these regulations and laws by following them strictly and well (Worldatwork, 2007). Discrimination based on gender, religious beliefs, race, ethnicity, national origin, disability, and pregnancy during hiring or firing is not allowed in the company. There is no child labor in the company and regulations are kept to maintain the working conditions and safety are the workplace. The pays of nonexempt employees wages and overtime pay is well developed and follows the standards set by the Fair Labor Standards Acts.
Going hand in hand with the compensation are several comprehensive benefit programs that the company offers to its staff as a reward for hard work activities in the organization. The programs that are offered to the employees give them a chance to gain extra money/wealth along with providing for their well-being and protection. The programs offered are as follows:
Health Insurance; including vision and dental insurance
Disability plans
Educational assistance
Life Insurance
Day care/Child care services
Adaption plans
401 (k) plans
All the programs mentioned are available and eligible to all exempt and nonexempt salaried employees working in the company.