Introduction
This paper outlines Amazon’s TRP (Total Rewards Package), considering the organization’s mission, vision, values, and strategic priorities. A TRP incorporates a combination of benefits, rewards, and compensations that employees are entitled to at the workplace. A TRP includes wages, financial bonuses, recognition, career development opportunities, and workplace flexibility. The paper will enumerate the types of rewards to be integrated into the TRP and explain their alignment with Amazon’s strategy and advantages. It will also cover the performance measures, a monitoring schedule, and a timeline for the plan’s evaluation.
Company Background
Mission and Vision
Amazon’s mission and vision establish the company’s movement toward long-term expansion and progress, offering strategic direction for achieving its goals. The mission statement places prominence on customer satisfaction by proposing a wide range of products (Pereira, 2023). The company’s vision supports its engagement in workplace safety practices and positive HRM approaches. Amazon’s mission and vision promote the organization’s success within and beyond the online retail industry.
Strategic Priorities and Values
Amazon has several key priorities that it pursues throughout all of its processes. First, the company focuses on its customers’ interests rather than on attempts to outperform its competitors (which it still does due to the customer-centered approach). Next, Amazon is rather passionate about invention and innovation and dedicates much effort to pursuing these goals (“Who we are,” n.d.).
Apart from that, Amazon is highly committed to operational excellence, paying due attention to each process and task it covers. Finally, the company prioritizes long-term thinking, focusing on future assets and predicting customers’ needs and wishes. Amazon’s priorities set forth its values, which are concerned with customers’ and employees’ satisfaction.
Key Competitive Advantages
Amazon possesses several competitive advantages that make it stand out among its competitors. First, people using Amazon’s services are convinced that their interests are the biggest asset to the company and that their wishes will be satisfied. Second, Amazon offers an unprecedented range of products that is larger than its competitors can suggest. Due to this, people tend to choose Amazon over other similar providers.
Next, the company strives for low process and fast shipping of goods, which attracts customers who want to save money and time while receiving exactly what they need. Finally, an evident competitive advantage of the organization is its constant focus on innovation and development. Unlike some competitors that have gained fame and reputation and stopped concentrating on profits, Amazon keeps moving forward, using every opportunity to enhance its products and delivery methods.
Using Total Rewards to Promote the Advantages
While competitive advantage largely focuses on customers, it is crucial to remember that none of Amazon’s success would be possible without its employees. That is why it is of the utmost importance to engage and retain talent to maximize organizational output. Amazon is considered the world’s largest e-commerce entity and a great innovator (Sadq et al., 2018).
However, to focus on satisfying its customers’ needs, the company needs to first concentrate on making its employees happy. Amazon risks losing its success without a satisfied team of workers who feel secure and are eager to contribute to their company’s development. A TRP will enable the organization to stimulate its employees and, by doing so, to keep satisfying its customers.
Proposal
The proposal for an Amazon TRP encompasses different rewards that can be utilized to recruit and retain talent and maximize employee and organizational output. Compensations, which include wages and salaries, will be viewed holistically and will look beyond the base salary. Benefits will comprise a vacation package, sick and bereavement leaves, and a leave of absence.
Work-life balance will offer an environment that promotes a healthy balance between employees’ personal and work lives. Performance recognition will include peer and team recognition and will allow rewarding the workers who display outstanding performance. Finally, growth and development opportunities will foster employee loyalty and enhance their skills simultaneously.
Compensations
Compensation is the major part of the TRP since no matter how great the environment is, no one will work without being paid. In the TRP, compensation is viewed holistically, comprising various financial incentives encouraging employees to perform well (Mone & London, 2018). For instance, Amazon can implement a variable-based system to reward workers based on their performance.
Once an individual has reached a certain pay level, they must earn it again when the subsequent period ends. Short- and long-term incentive pay is extra compensation for short- and long-term performance enhancements (Mone & London, 2018). Employees appreciate these opportunities as they know they will be rewarded for excellent performance.
Benefits
While the traditional benefits system works well for average employees, companies that want to attract outstanding workers must create exceptional benefits packages. The reward system has a favorable effect on employee performance (Noorazem et al., 2021). That is why Amazon must make its employee benefits stand out. Current and potential employees will appreciate a vacation package and bereavement and sick leave opportunities. Enhancing retirement benefits, which can be achieved through individual retirement accounts or retirement benefits plans, is another highly effective solution.
Work-Life Balance
Creating a healthy balance between work and personal life is paramount to any individual. Amazon should promote this balance by acknowledging employees’ needs and striving to meet them. Once the employer takes care of employees’ needs, people obtain time and desire to dedicate their efforts to work (Bataineh, 2019). The simplest way of finding an equilibrium in this dimension is by offering a flexible schedule.
Another highly relevant option is taking care of employees’ mental and spiritual health by engaging them in creative workshops and nutritional counseling. Fitness activities and an opportunity to attend a gym will enhance employees’ physical shape and relieve stress. Additionally, a child-care facility will be highly appreciated by those employees who cannot afford a babysitter or a kindergarten but are dedicated to work once they feel their child is taken care of and safe.
Performance Recognition
Being recognized for performance is an aspect of work that motivates employees to strive for even better. Hardly any employee will remain indifferent to whether their efforts are being acknowledged. Performance recognition is a powerful tool for encouraging people to stay in a company (Mabaso & Dlamini, 2018). At the same time, coworkers will feel motivated to outperform once they see that those who have gained considerable achievements are properly valued.
Amazon should implement peer and team recognition approaches, under which a person’s coworkers will choose whom to award for exceptional performance. Awards such as Employee of the Month or Year can boost employee morale and inspire others to strive for exceptional results. It is crucial to let employees know that their efforts and achievements are appreciated to retain talent within the company.
Growth and Development
Understanding employees’ needs in terms of financial stability and personal life is crucial in gaining their commitment. However, by offering opportunities for professional development, Amazon will increase employee satisfaction and improve the workforce’s skills, thus benefiting the company as well. Research indicates that organizations must recognize their people’s needs and values to succeed (Madhani, 2020).
By providing tuition assistance to those obtaining a new level of education or an additional degree, the company will ensure employee dedication and simultaneously receive powerful new skillsets for improving its performance. Offering technology training will help employees feel more confident about innovative equipment and will enable them to speed up work processes. Finally, providing additional time off to those who participate in various programs and seminars will let people know that the organization is genuinely interested in their professional growth.
Primary Focus of Rewards
All of the suggested rewards are aimed at keeping the existing employees. However, some of them are also focused on recruiting highly skilled, talented people. Salary packages, employee perks, and options for maintaining a healthy work-life integration are the primary aspects that those seeking employment at Amazon will look into. Individuals are likely to inquire about the salary, bonuses, and possibilities of managing their personal lives along with their work when they apply for a job. Meanwhile, for those who are already employed, such issues as acknowledgment of employee achievements and opportunities for professional advancement opportunities are also vital.
Administering Rewards
Each type of reward should be administered in a relevant way. Both new and experienced employees should know what kind of rewards they are eligible for so that they can utilize any opportunity they deserve.
Rewards Alignment with Strategy, Mission, Vision, and Goals
Each of the rewards is linked to certain goals, strategies, and values, as well as the mission and vision of Amazon. For instance, the value of hiring the best talent is linked with compensation and benefit opportunities offered to newly hired employees. The mission and vision of the company align with such rewards as performance recognition, growth, and development. Ultimately, each reward is related to the company’s goals and strategies, as motivated employees are likely to strive for customer satisfaction.
Rewards’ Support of Amazon’s Competitive Advantages
While rewards are aimed at boosting employee morale and performance, their ultimate purpose is to support the company’s competitive advantages. These processes are closely interconnected, as happy employees are eager to make customers satisfied. The majority of rewards are related to the advantage of customer-centeredness. However, some rewards pursue specific goals, such as growth and development, aimed at promoting employees’ striving for innovation.
Performance Measure
Along with improving Amazon’s competitive advantages, the TRP has the potential to affect the organization’s performance measures. Compensation, benefits, and work-life balance opportunities will influence the quality of new hires by attracting talented employees who are interested in being well compensated for their efforts. Performance recognition, growth, and development will eliminate turnover rates and increase the quality of production.
Timeline
Proposed Monitoring Schedule for Measures Identified
The most optimal time lengths within which the identified measures can be monitored are three, six, and 12 months. Within the first three months of the TRP implementation, it will be possible to compare the quality of new hires, the production level, and the turnover rates with those prevailing before the TRP. Additionally, the production level will be reevaluated at 12 months to identify any considerable changes.
Proposed Timeline for Implementing the Total Rewards Package
It is suggested that the TRP be developed within August and September of 2023 so that all the necessary information and calculations can be collected and completed. Once the TRP is introduced in October, the outcomes will be measured in January, April, and July of 2024. These measurements will allow for identifying the positive and negative sides of the TRP. Within a year of the TRP’s existence, additional monitoring of the production growth will be carried out.
References
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