Assignment 5 New and Improved Rewards at Work - Copy
Assignment 5 New and Improved Rewards at Work - Copy
CSU - Dominguez hills
Popular in Department
verified elite notetaker
This 10 page Study Guide was uploaded by inku Notetaker on Friday November 20, 2015. The Study Guide belongs to at California State University - Dominguez Hills taught by in Summer 2015. Since its upload, it has received 136 views.
Reviews for Assignment 5 New and Improved Rewards at Work - Copy
The content was detailed, clear, and very well organized. Will definitely be coming back to inku for help in class!
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 11/20/15
New and Improved Total Rewards at Work Assignment 5 New and Improved Rewards at Work Aprile R Lester Dr. Valencia Westray Total Rewards – HRM 533 March 15, 2013 New and Improved Total Rewards at Work Abstract Employers have been coming up with innovative employee rewards to boost morale and acknowledge employee needs for creativity and personal goal accomplishment. Some of the latest potential employee rewards include using the Internet at work for personal reasons such as shopping, communicating with friends, or personal finances; bringing a pet to work; instituting a controlled napping policy, and the sports and office betting pools, although those maybe extreme creative we will discuss how innovations in employee benefits actually can improve overall competitive compensation strategy, how innovation of certain benefits can be aligned with a specific job, critique the effectiveness of equity based rewards verses other creative approaches, discuss key elements of integrating innovation into traditional rewards program(s) and recommend a process that optimizes an employeebased suggestion program to continually refresh the total rewards program of an organization. Determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. A Right Total Rewards System is a characterized as monetary and nonmonetary rewards offered to employees, which will generate valuable business results. These results range from enhanced individual and organizational performance to improved job satisfaction, employee loyalty, and workforce morale (Henenan, 2007). However, instead of organizations awarding employees pay increases and other incentives simply for seniority, the so called total rewards program can link rewards to achievement of the organization’s strategic objectives (Henenan, 2007). Currently, organization’s HR professionals and other managers have begun experimenting with innovative New and Improved Total Rewards at Work types of rewards in the workplace, including skill based pay and goal sharing and particularly wanting to align workers interests with company goals. The real innovation in total reward strategies occur when human resources professionals and business executives alike realize that there are many other factors that motivate and retain employees other than standard compensation and benefits programs. Thus employers need to move beyond the normal and begin to use these rewards and secondly, plans need to also show variety. When implementing total rewards program it can also cause a lot of challenges and either revising a current rewards program or designing an entirely new plan, and these questions should be included in the renovation or design process (i.e. what types of rewards it will include, how the plan will be funded); because an organization’s ability to attract, motivate and retain will emerge as the primary indicator of fiscal performance and survival. Once a carefully design is in place, organizations can offer more variety in types of rewards as they try to attract the best and brightest, because during any recruitment process, potential employees want to learn or become aware of innovative benefits of the company and if they can manage both their work and personal lives. A few examples of rewards can include, flexible work schedules, childcare facilities, telecommuting, work from home options, pet insurance, education benefits, company paid leave for unique circumstances, stock purchase options, bonuses etc. Most organizations will provide benefits with an exception of wages, salaries, employee healthcare benefits but employers need to provide a full range of benefits and not just to stay competitive and relevant in the labor market workforce, but create and provide a concern, value and interest in the employee’s welfare. New and Improved Total Rewards at Work New and Improved Total Rewards at Work Explain how innovative benefits could be tied to specific jobs. With the prevailing wages in our current economy, it is critical that an organization is aware that fluctuating pay rates and market price of jobs has to be present to remain competitive. The desire to attract and retain the best qualified employees versus competitive constraints on labor costs can be remedied by aligning benefits to specific jobs. Tailored benefits can enhance an employees’ satisfaction with their job but can only happen if and only if the plan fits for an employees work life needs. For instance, a younger person may not be interested in retirement plans or long term care insurances however those same benefits may be of greater interest in an older employee (Henenan, 2007). Innovation of benefits is so closely tied to employees’ satisfaction, morale, and motivation where employees are driven to perform their job tasks at levels that exceeds the “standard”, compensation and benefits must be relatively close or exceed the competition to ensure that key employee’s feel valued and rewarded for their efforts (Ruddy, 2007, p. 338). Providing customized benefits that are closely tied to specific jobs can be structured enough to allow rewarding of job performance, design certain behavior and instill pride in an organization. Employers should be readily open to design tools and rewards to communicate the commitment to their employees and remind employees how much they are appreciated. Companies such as Google Inc., Cisco Inc., and Wholefoods are currently leading the way so employees can streamlines creative areas and are rewarding employees with allowing employees to bring pets to work, providing onsite child care, free food, onsite fitness centers depending upon your job and nixing the old employee of the month parking space and raise the bar of total rewards by aligning it with an individual’s specific job (Cook, 2013). New and Improved Total Rewards at Work Critique the effectiveness of equitybased rewards systems versus those with more creative approaches. Today’s competitive business climate calls for more business owners to look at improvements in quality while reducing costs. Equitybased compensation rewards are collaborative efforts and aligns the interests of companies, shareholders and employees all the while organizations will continue to desire to get more from their employees, and their employees will continue to look for more out of them, thus employee recognition and reward programs are the methods of motivating employees to change their work habits and behaviors (Lederer, 1995). Equity based rewards are usually monetary but can have high costs for the company, so it will require that business owners to separate salary or merit pay from reward system. Equity rewards can take many forms of compensation – which can be used for a long term employee incentives in the form of variable pay and can include stock options, stock awards/grants and stock alternative and benefits – which include employee stock purchase plans (ESPP’s), retirement plans such as employee stock ownership plans (ESOP’s) , and 401(k) plans – which enable employees to contribute pretax contributions through salary reduction agreements (Ruddy, 2007, p. 366) . Primarily equity rewards can help create an ownership culture that allows employees to take a greater interest in the factors driving businesses to success (Ruddy, 2007). The more creative the approach the more it allows employees to live their lives while still getting their jobs done by offering equity rewards. The below list gives reasons for organizations to use equity rewards • Align management/employees with shareholders – employee interest in the profitability and the successes of the company New and Improved Total Rewards at Work • Build Motivation – components of total rewards package can be used to motive employees as money is one of the most powerful motivators available • Conserve Resources – equity rewards allow companies to provide competitive compensation without depleting other assets • Wealth Creation gain that creates significant opportunities for employee wealth • Tax Advantages – tax advantages through equity rewards can benefit both employee and employer • Attraction and Retention – creates the competitive edge to attract, motivate and retain top talent • Capital Accumulation – positive cash flow from employee stock purchase allows company to raise capital. The fact of life is equity based programs are highly regulated and viewed as a plus given the rise of innovation in equity rewards, that employers’ are using now (Ruddy, 2007), I believe both equity based rewards and other creative approaches can create more than just commitment but allows an organization to define what an employee wants from their employee/employer relationship. Discuss the key elements of integrating innovation into a traditional total rewards program. The earliest years of Total Rewards in the workplace only entailed limited areas of compensation and benefits were recognized as certain professions; and practices were based largely on formulas that served the entire employee population in an organization. Salary structures were New and Improved Total Rewards at Work rigid and controlled and benefits programs were designed as a onesizefitsall answer to a homogenous work force. Today, there are key elements of integrating innovation into a traditional total rewards program. The attraction and retention of key talent is an important component of an organization’s overall success. That’s why successful organizations consider all of the elements of a total rewards program when communicating with prospective or current employees. In other words, total rewards include everything that an employee perceives to be of value. Essentially, an employer provides rewards that its employees value in exchange for their employees’ time, talent, effort and, of course, results. Some key elements to integrate innovation into a traditional total rewards program begins with Culture powerful, yet invisible tool (collective thoughts, attitudes, behaviors and identity of the organization and determines how and why a company operates in the way it does. Environment – external factors which can include new competition for talent, changes in legislation Attraction – the ability to draw the right talent for the right position. A well groomed talent pool would be essential for an organizations survival as well. Retention – the ability to keep employees who are valued contributors to organizations success for as long as it is mutually beneficial. Motivation key plank of a business strategy, This is the driver to organizational success (Alliance for WorkLife Progress, 2008). Recommend a process that optimizes an employeebased suggestion program to continually refresh the total rewards of the organization. New and Improved Total Rewards at Work Competition is very high at this time in the labor force. Employees are looking for that special employer who can adapt to their work life needs and employers are looking for top talent and don’t mind providing a few extras to not just to attract, retain and improve productivity by applying the five step PRIDE process: P – Provide a positive working environment R – Recognize, Reward and Reinforce the Right Behavior I – Involve and Engage D – Develop skills and Potential E – Evaluate and Measure (Smith, 2008) Jim Goodnight, the cofounder and President of SAS in RaleighDurham, NC. Sas is the largest software development company in the United States. Their progressive work environment and host of familyfriendly benefits keeps their turnover rate far below the national average. Jim said, “My assets leave work for home at 5:00pm or later each night. It is my job to bring them back each day! Wise executives realize the responsibility for creating a positive work environment cannot be delegated.” Ultimately, if an organization carefully measures and analyzes what means the most to their employees in terms of total rewards and that their employees’ are the most important resource for organizational competitiveness and success. Managers need to understand their employees’ perceptions of the importance and fairness of the reward and clearly communicate them. Reward systems will assist in all recruiting efforts and implementing new and improved rewards will allow an organization to be identifiable standing above the rest as a great place to work. As a consequence to this, the organization can attract the best and the brightest, and becomes even a New and Improved Total Rewards at Work more attractive workplace. Hopefully, organizations can see that establishing the right reward structure for an organization is critical to its success. Resources Alliance for WorkLife Progress. (2008, March 14). Retrieved from www.awlp.org: http://www.awlp.org Cook, J. (2013, March 15). How Google Motivates thier Employees with Rewards and Perks. Retrieved from www.thinkingleader.com Henenan, R. P. (2007). Implementing Total Rewards Strategies, A guide to successfully planning and implementing a total rewards system. In Implementing Total Rewards Strategies, A guide to successfully planning and implementing a total rewards system (p. 13). Detroit. Lederer, J. L. (1995, March 14). Equitybased Pay: The Compensation Paradigm for The Re engineered Corporation. Equitybase Pay: The Compensation, Benefits and Total Rewards., p. 3. Ruddy, A. C. (2007). The WorldatWork, Handbook of Compensation, Benefits & Total Rewards. Hoboken: John Wiley & Sons, Inc. Smith, G. (2008, March 11). Retrieved from Tips to Attract, Keep and Motivate: www.chartcourse.com
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'