Proposal Purpose
Today, organizations compete for the most competent employees, resulting in job competition since qualified and innovative employees significantly impact their jobs. Organizations must retain the most productive employees and get the competent and right employees. Attracting and retaining employees who help the firm achieve its intended goal is more complex. This proposal suggests using and implementing a comprehensive total rewards program to attract, engage, and retain employees. Therefore, the program involves the application of monetary and non-monetary benefits that are designed to match the ultimate objective of the company, its core values, and its organizational culture.
Total Rewards
Concepts of Total Rewards and Their Importance
Total rewards are a reward approach or tactic that combines all the investments a company generates in its workforce. Total rewards include pay, pension, learning, and development. They involve both money and non-monetary benefits designed to motivate and retain employees (Alhmoud & Rjoub, 2020). The ultimate goal of using a total reward program is to provide a competitive package that cares for the employees’ needs and expectations.
Use of a Total Rewards Package
A company would seek a total rewards package for several reasons, including attracting and retaining the most talented employees. When comprehensive monetary and non-monetary benefits are provided, the employees feel valued and wish to stay in the firm, unlike those working in other firms. They do not receive the same treatment. A total rewards package is one of the means of enhancing an organization’s brand reputation and improving workers’ productivity (Alhmoud & Rjoub, 2019).
The total rewards program is also critical for worker retention since it enhances the development of a loyal and robust workforce in a company. A company minimizes employee turnover, multiplies engagement, and nurtures a working organizational culture. The ultimate goal is to make everyone feel they are part of the organization and promote talent development so that the company can sustain the production of unique and quality products and services.
Significance of Total Rewards for Employee Retention
Total rewards are fundamental for employee retention since they stimulate well-being and motivation. Employees feel appreciated by the firm and wish to work there. Secondly, employee retention through a total rewards strategy makes the firm more competitive, sustaining excellent performance. When an employee receives an offer like a gift card, the employee feels more motivated and works harder since that offer makes the employee feel appreciated and valued.
Why Total Rewards Packages Are Valuable to a Worker
Total rewards packages are valuable to employees since they indicate that the firm cares for the employee. A total reward package is one of the means of showing that their well-being is given priority. Therefore, they should also help the firm meet the intended goal since it promotes and encourages worker engagement and improves the organization’s performance. The employees also benefit from the total reward offerings and develop a good relationship with the employer.
Total Rewards Package
Components of a Total Rewards Package
The total reward package involves several elements, including compensation, well-being, recognition, development, and benefits, aiming to lead to better performance in the firm. Therefore, the total rewards package must include things like health and wellness benefits, a base salary, retirement plans, variable pay, time-off benefits like paid leave, career development opportunities, and other attractive incentives. The employee is provided with all these as a form of appreciating their contribution to the firm and making them feel valuable to the organization as well as part of the organization. Most organizations that provide employees with this kind of benefit can attract talent and retain employees.
Sections of a Total Reward Value
Total reward value contains several elements: base salary, time-off benefits, health insurance, pensions, bonuses, and allowances. The salary base is vital to the firm since it keeps employees more productive. On the other hand, a pension as a retirement benefit plays a crucial role since it helps retain an employee for a long time.
Employees also enjoy health benefits like insurance, which help demonstrate that the firm cares for the well-being of its employees. Bonuses and other incentives are a part of the total reward package as a part of appreciation when the worker works beyond what is stipulated. For instance, employees who work beyond the stipulated period receive overtime payments.
Differences Between Monetary and Non-Monetary Rewards
Reward offers are a common culture and a strategy employers use to motivate and retain employees. Offering rewards exists in two primary forms: monetary rewards and non-monetary rewards. Monetary rewards involve cash given to employees based on their performance assessments. For instance, most of the salaries and wages are in the form of monetary rewards. On the other hand, non-monetary rewards involve offering things or services that are not in cash form. For instance, health insurance, paid leaves, and gifts are non-monetary. An employee can be gifted with a shopping card on their birthday.
Talent Retention
Talent retention involves retaining employees based on what it takes for the firm to perform and meet its intentions. Organizations do not only aim to make employees stay but also boost productivity and promote engagement levels that will increase profits and revenues. Retention of talent is an enormous achievement because a company will maintain its productivity, have qualified employees at all times, and minimize the cost of training.
How Total Rewards Components Are Utilized to Attract and Retain Talent
Total rewards components can be significantly reliable in attracting and retaining employees. An excellent example of an element that can attract talented employees is a high salary or handsome pay compared to other firms where employees provide the same services. Retaining an employee also means rewarding them to the point that the employee feels satisfied and appreciated by the company. The best way to keep employees is by providing favorable working conditions and ensuring they are always safe.
Examples of Total Rewards Components
Career growth and development opportunities include expanding education, training, and development programs. This reward is desirable, especially for employees seeking career growth.
- A good working environment benefits, including a flexible working period. This attracts employees seeking flexibility in their working schedules and those who want to balance time for their interests and working time.
- Health and wellness benefits as part of the total rewards would be attractive to employees who value their well-being and health.
- The retirement benefit component is also very attractive for employees who pay attention to their future lives and seek long-term financial security.
Employee Value Proposition
The EVP deals with a unique set of merits that a worker receives in return for the capability, experience, and skills they bring to the company. Thus, the EVP gives attention to the essence of the firm or organization regarding its uniqueness, purpose, or what it stands for. The employer promises the employees their commitment (Kumar et al., 2021). For instance, an employer could promise to provide employees with transportation benefits when they achieve their goals. An employer can promise employees an end-of-year tour to a specific place so that the firm can make a particular amount of revenue before the end of the year.
The total reward is part of the employee value proposition, and some of the total rewards that form the EVP include compensation and balancing work and life. Therefore, the management of an organization can rely on an EVP that makes employee part of their movement. With such an EVP, a company will improve its own standards and the living standards of its employees. It can be guided by several pillars, including going beyond, being unique, and acting as a catalyst (Antony, 2018). For an organization to achieve this, it needs a total rewards program that not only motivates employees to give their best at the workplace but also makes them feel that they are part of the organization
When a firm establishes a favorable organizational culture, it provides its employees with attractive and good working conditions, which will attract employees to work for the long term. Management needs to foster a genuine employee connection and ensure that talented employees can easily work together. As a result, employee connection helps build morale and share ideas that could help the firm perform even better.
References
Alhmoud, A., & Rjoub, H. (2019). Total rewards and employee retention in a Middle Eastern context. SAGE open, 9(2).
Alhmoud, A., & Rjoub, H. (2020). Does generation moderate the effect of total rewards on employee retention? Evidence from Jordan. Sage Open, 10(3).
Antony, M. R. (2018). A paradigm shift in employee engagement–A critical analysis on the drivers of employee engagement. International Journal of Information, Business and Management, 10(2), 32-46.
Kumar, A., Devadas, U. M., & Dhammika, K. A. S. (2021). Impact of employee value proposition on employee retention. International Journal of Economics, Business and Human Behaviour, 2(3), 19-33.