Assignment 5: Executive Report on Total RewardsTHIS IS FOR AN UNUSED NOT PUBLISHED DOCUMENT USING THE INFO I PROVIDED AND YOUR OWN RESEARCH METHODS. *** ALL PREVIOUS PAPERS HAVE BEEN PROVIDED AND THE

Total Reward System

Name

HRM 533

Dr. Wash

August 13, 2018

1. Create a brief overview of the company requirements for a total rewards system.

By introducing the procedures of total rewards system in our company of telemarketing can have significant positive outcomes in terms of business objectives as it aids the employees in knowing the full value of working for the company. Moreover, the system also drives effective communication which in turn boosts engagement as it utilizes an ongoing approach instead of being performed as a yearly event. There are many factors that are critical for consideration before implementing the total rewards system (Sumod, 2012). These factors are highlighted and discussed briefly in the following paragraphs:

Company Size: The first requirement for implementing the total rewards system is to analyze the size of the company as the implementation of the system requires varying logistics according to the size of corporations. The subject company is of a larger size having over 20,000 employees which makes it a large-scale organization and relatively requires a larger number of logistics.

Global versus Domestic: There are many variables to be considered while implementing the total rewards system such as specific rewards or perks that may be subject to geographical location. It can become a challenge to implement a total rewards program for an organization operating on a global scale as is the case with our company of telemarketing that spreads out in 17 different countries worldwide. In order to implement the system for this company, a more fine-tuning and a severe strategic planning besides involving consideration of language differentiation when and where ever needed.

Content: The selection of content also plays a crucial role while implementing the total rewards system as analyzing what to include and what not to include in the rewards system is important for efficient achieving of the desired objectives. It can be made broad or detailed according to the requirements of the company. The information or content that the employees want to see must be made available so that their preferences are properly utilized in the business procedures of the company. There are virtually limitless options available to be included in the total reward system that conforms to the organization or business goals of the company.

Features: The features required in the total rewards system should perfectly conform to the requirements and needs of the company. It makes easy to seek a vendor by having a concrete set of ideas that are according to the organization as well as business needs of the company so that the selected vendor proves useful for the company to the maximum extent (Sumod, 2012).

Audience Differentiation: It should be noted that whether the total rewards system is made available to all of the company associates or only to some of them which are known as audience differentiation. There are certain elements defined in this differentiation which are accessible only for specified employees in which the information presented is controlled by the upper-level management of the company.

Teams or Resources: A tight relationship is mandatory for ensuring that departments like human resource, communications, and marketing lead up to the time of implemented total rewards system’s roll-out. All the departments have their specified roles that are necessary for achieving the mutual goals in the form of the company’s goals.

HR Software Vendors: Such a vendor should be selected who offers a solution that best matches up with the needs of the company. The demos of their products must be considered in order to learn as much as we can to aid in implementing informed decisions.

1. Formulate a total rewards strategy to encompass the fundamentals of compensation and the regulatory environments.

An effectively implemented strategy of compensating the employee’s aids in achieving business goals by making the regular salaries in alignment with the goals and objectives of the company. Such a strategy presents the basis of the administrative designs besides anchoring the ongoing as well as upcoming procedures with organizational norms of an organization. Recognizing and rewarding for achievements must be the primary constituent of the policy adopted by an organization. The major goal ahead of any organization in this perspective remains of hiring and retaining the employees according to their expertise and performances. Upper-level management of the company has a firm belief that performance-based compensations aid in developing as well as retaining a talented workforce (Greene, 2014). Moreover following compensatory procedures can be introduced for the benefit of employees:

• Yearly Increments that apply on both exempted and non-exempted salaried employees of the company

• Annual Promotions that apply on both exempted and non-exempted salaried employees of the company

• Annual Spot Bonuses that apply on both exempted and non-exempted salaried employees of the company

• Short-term Incentive Compensation that applies on both exempted and non-exempted salaried employees of the company

• Long-term Incentive Compensation which applies only to the exempted salaried employees of the company

The compensation programs of the company stick to laws and their regularities in order to make them adhere to the specific laws that are designed to provide fairness in the procedures of paying the employees. The company also ensures that there is no discrimination on the basis of race, color, religion, gender, nationality, and disability in the procedures like hiring, firing, and promotions. The company follows the regulations of working environments and their safety, for example, there is no child labor deployed in any department of the company throughout the world. Moreover, the company also provides certain comprehensive benefit programs other than compensation programs as a reward to such employees who show exceptional performances. These comprehensive benefit programs are listed as follows:

• Health Insurance that applies to both exempted and non-exempted salaried employees of the company

• Vision and Dental Insurance that applies to both exempted and non-exempted salaried employees of the company

• 401 K Plan that applies to both exempted and non-exempted salaried employees of the company

• Disability Plans that apply on both exempted and non-exempted salaried employees of the company

• Adaption Programs that apply only to exempted salaried employees of the company

• Educational Assistance programs that apply only to exempted salaried employees of the company

• Life Insurance that applies to both exempted and non-exempted salaried employees of the company

• Day Care Services that apply only to exempted salaried employees of the company

1. Explain the advantages of the total rewards strategy you are proposing and how it might satisfy the employees’ needs.

The system of total rewards can be utilized for communicating the comprehensive valuation of employment to the teams. Some companies utilize an even more powerful approach for driving engagement, retention, and amelioration of business outcomes associated with a total rewards system. The total reward systems follow a continuous approach unlike employee benefit systems which incurs the following advantages (Ludlow, 2010):

• Increased engagement of employees

• Decreased rates of voluntary quits

• Increased retention of the employees

• Engaging the families of the employees

The other advantages associated with the efficient implementation of total rewards systems are listed as follows:

• It is a one-time project which eliminates the need of spending months in preparing for statements every year as the HR team of the company only needs to prepare for the roll-out of company’s total rewards system only once. This enables the staff members to make updates when and as needed or for simply configuring certain elements without redesigning the entire system. This provides the HR teams or upper-level management with more time to focus on their organizational priorities.

• They are less expensive as compared to the total reward statements as former involves only legwork in contrast to the latter which requires a great deal of work from the employees every year.

• The total reward systems are easy to update regularly as making changes is much simpler with a configurable total rewards solution that is a vital attribute of the total rewards system implemented by the company. The information presented is timely and relevant to the organizational requirements rather than being outdated or irrelevant.

• The systems also give an access to powerful analytics like the incorporation of predictive analytics for the company’s employees such as walk-away value, prospective growth, and estimation of the total rewards package for the next three to four years.

Therefore it is highly recommended that the company must start thinking and acting in terms of total rewards system rather than benefit statements in order to drive retention, savings, and an efficient communication of the full value of the employment.

1. Determine the key communication components of the total rewards system.

The system of total rewards can be implemented in a competitive as well as desirable way if the people of a company are acquainted with its inside detailed knowledge and information. The need for making the employees acquainted gives rise to the need for an efficient communication system to be followed or implemented by the company. There are various issues which the company’s administration needs to figure out before implementing the communication strategy (Gulyani& Sharma, 2018). These issues are listed as follows:

• How to communicate effectively with employees on different organizational levels?

• When and how to communicate?

• Which communication media to be preferred?

• Which individuals or teams have to communicate with the employees?

The company’s administration can clarify its mind about the above-mentioned issues before it starts to implement the communication strategy. There will be two teams for the given company for interacting with various level employees. Team 1 will communicate to exempted people whereas team 2 will take care of non-exempted people. Team 2 will also make emphasis on the implementation of the communication strategy and the associated policies. Both the teams will be provided with written instruments containing the explanation of the communication strategy for both the exempted and non-exempted employees of the company.

Moreover, there will be audio content for the communication strategy of non-exempted employees in order to facilitate them in understanding the strategy more efficiently. There will also be toll-free lines available for both exempted and non-exempted employees for the purpose of guidance about the benefits associated with the strategy. Such advising people will also be present in the company premises for instant and effective access. The employees suffering from accidents can take advantages of the disability programs in accordance with the guidelines of company advisors. The advisors will also be responsible for creating career paths for the employed people of the company. The people of the company can have communication or interaction with the advising people according to their issues or demands.

Whenever any amendments are made in any component by the company, company’s administration makes all the employees gather in a conference room for the purpose of making them acquainted with such amendments so that all the procedures go according to the planned guidelines. It also depends on the level on which the employees are working so that emails or flyers are generated about the amendments made. The procedures for effective communication of information are crucial for the organizational goals at every step.

1. Indicate your strategy for devising a competitive pay structure

My strategy for devising such a pay structure for the company that is competitive is developing detailed job descriptions before hiring of the new workforce. This aids in the accurate comparison with surveys published in the market besides aiding in the comparison with jobs that are generated within the company. The job description also defines the qualifications and expertise that are needed for the job position including educational as well as experience requirements (Laux, 2015). This strategy helps in selecting such a workforce that is skilled as well as most suitable for the organizational and business needs of the company. The pay structure associated with the job position is also defined in the job description however further negotiation can be made with the candidates during the hiring process or at contract finalization. There are different levels defined for the salary packages like minimum, mid-point, and maximum ranges like in the case of some non-exempted jobs.

References

Greene, R. (2014). The Role of Employee Ownership in the Total Rewards Strategy. Compensation & Benefits Review, 46(1), 6-9. doi: 10.1177/0886368714529919

Gulyani, G., & Sharma, T. (2018). Total rewards components and work happiness in new ventures. Evidence-Based HRM: A Global Forum For Empirical Scholarship. doi: 10.1108/ebhrm-12-2017-0063

Laux, V. (2015).Executive Pay, Innovation, and Risk-Taking. Journal Of Economics & Management Strategy, 24(2), 275-305. doi: 10.1111/jems.12090

Ludlow, A. (2010). Making total rewards work. Strategic HR Review, 9(6). doi: 10.1108/shr.2010.37209fab.007

Sumod, S. (2012). Total Rewards & Pay-for-Performance. SSRN Electronic Journal.doi: 10.2139/ssrn.2004533