It is important to note that total rewards are a set of both non-monetary and monetary rewards, which serve the purpose of retaining, motivating, and attracting employees (GreggU, 2018). The first key takeaway is to design the reward system in such a way, where workers are encouraged to exhibit the highest degree of performance without any potential loopholes solely on the basis of a meritocracy. The second takeaway is centered around pay discrimination, where the lack of intentionality does not make it unlawful (GreggU, 2018). The next valuable lesson is to ensure that the overall climate within an organization does not contribute to employee dissatisfaction levels.
It is important to note that an already established compensation system is not always the key factor in determining the satisfaction of workers. It means that employers, in most cases, are able to improve employee satisfaction without altering the current compensation significantly (GreggU, 2018). In addition, human resource managers need to be aware of both internal and external equities in order to avoid harmful consequences, such as high turnover rates. In other words, fair pay needs to be ensured, where reward increases are solely based on skills, competencies, performance, accomplishment, and responsibilities (GreggU, 2018). The employee perception of ethical and fair treatment can be increased by openness in explaining the pay decisions and grades. Leaders and human resource managers also should not be isolationists in terms of compensation strategies, which means that the general market competitiveness should be one of the most critical factors altering the pay system (GreggU, 2018). Lastly, any source of information, such as pay surveys, need to be properly evaluated, and wide pay ranges are mostly acceptable only for high-end positions.
Reference
GreggU. (2018). Introduction to total rewards [Video]. Web.