Hrm 533 – Total Rewards System Proposal
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Assignment 3: Total Rewards System ProposalHRM 533 Total RewardsAugust 13, 2017Introduction In order for a company to have strong performance, the employees have to see value in working for that company. A win/win relationship must be established early on for a company to obtain and retain employees that are talented and dedicated to their work. Every company needs a strategic reward system that includes compensation, benefits, recognition and appreciation to increase employee satisfaction, morale and loyalty. A solid total rewards program can encourage motivation and increase engagement. Employees like a mix of tangible and intangible rewards, some of which are easy for employer to provide. The paper will begin by creating, organizing and managing a total rewards system for a telemarketing company. Within the paper, I will specify the requirement for the total reward system. After highlighting the requirements, a competitive strategy will be formulated and then thoroughly explained. Then the importance of a communication strategy will be discussed due to its importance in the total rewards system. Lastly, a strategy for developing a competitive pay structure will also be mentioned in the paper. Create a brief overview of the company requirements for a total rewards system. Total rewards systems are used to attract, motivate, and retain employees. A total rewards system typically includes compensation, benefits, work-life benefits, performance recognition and career path opportunities. Total rewards systems are a requirement in creating a win/win relationship between employee and employer. The monetary and non-monetary investments made to creates loyalty and lengthens the employment relationship. The company requirements for a total rewards system begins with the goals and corporate strategy. HR professionals should have a clear understanding of business model, vision, mission, and strategy as well as its critical success factors. Next, investigate how these goals and strategies are filtered down to each business unit in terms of goal settings and performance management. This knowledge is important in deciphering what motivates employees to perform at the level necessary to be successful. Last, create specific reward policies that will achieve both short and long-term requirements. A solid total rewards system should rewards performance, appreciate employees, encourage creativity and mean strong results for the company. The requirements that the total rewards system should meet are the following: 1) Offer competitive compensation, benefits, work-life balance, and performance recognition. 2) Make the company competitive in the job market, making it easier recruit top talent. Allowing HR to recruit employees that value people and their diversity, respect and work well with others. As well as employees that share knowledge and viewpoints to aid their respective departments in succeeding. 3) Build a culture of learning that is able to promote individual development, acceptability of change, and expert mobility. 4) Strengthen corporate culture. Have employees that act in accordance to the values and mission statement inclusive of innovation, team work, integrity, ethics, and professionalism.
Formulate a total rewards strategy to encompass the fundamentals of compensation and the regulatory environments.Some of the things to consider when developing a compensation plan for a total rewards strategy are financial goals and objectives of the company, the market, size of the company, and the geographic location of the employee. The intrinsic and extrinsic drivers that motivate employees in different units of the company is also important. In order to formulate a total rewards strategy to encompass the fundamentals of compensation and the regulatory environments, HR will need to do some research on each job title. HR will need to reassess job analysis, job description, and current pay scale of each title in order to propose a new pay scale for both exempt and nonexempt employees. Then, utilize external data such as salary surveys can help HR to determine how the company measures up to the external market in all the countries operated, which can also help determine appropriate salaries for each job title. Next, HR will create incentive pay or bonus plans that will be incorporated based on the job title or business unit to reward achievement of company or individual performance objectives. Finally, look at the entire total rewards strategy, including compensation, health insurance, vacation, leave policies, and retirement and savings plans, as it relates to job title and business unit. The company leadership will need this data to determine if this package is competitive with the market and if it is fiscally possible to deliver this package without bankrupting the company. A compensation program is required to be compliant to state and federal regulations, including FLSA, FMLA, ADA, EEOC and more. “One of the most important aspects of a compensation system is that it complies with existing laws and regulations, and that it be legally defensible in this era of litigation (WorldatWork, 2007, pg. 109).” Discrimination based on gender, religious beliefs, race, ethnicity, national origin, disability, and pregnancy during hiring or firing is illegal. Precautions need to be taken to ensure that there is no child labor and regulations are kept to maintain the safe work conditions for all employees. The compensation program should strictly identify exempt and nonexempt employees. FLSA requires accurate record keeping. It is critical that HR ensures legal compliance both nationally and abroad or else the company could face lawsuits by employees or by government agencies.Explain the advantages of the total rewards strategy you are proposing and how it might satisfy the employees’ needs. The advantage of the total rewards strategy includes recruitment, retention, and higher performance levels for the company. Recruiting efforts are rewarded with a heightened visibility in a tight labor market. One of the many goals of the program is to be recognized as a top employer in their industry. A large emphasis is placed on compensation plans and benefits packages offered the proves that the company values its employees. Organizational success is driven by engaged employees. “Total rewards programs provide direct incentive for employee performance (Gish, 2016, p. 1, para 3)”. This also means stronger performance and revenue for the company. Employees become connected with the goals, believe the work they do is important and therefore work harder.