Introduction
Makey uses various strategies to support its mission and vision. The use of employee compensation addressed most of the challenges affecting the firm’s performance. This essay begins by defining the term total rewards. The essay uses the case of Makey Company to analyze how total rewards can transform the performance of every firm. New recommendations are offered to ensure Makey expands its benefits programs.
Defining Total Rewards
Many companies “offer both non-monetary and monetary returns to their employees in exchange for their results, talents, and efforts” (Odunlade, 2012, p. 4). These returns are known as total rewards. Some of these rewards include wellness offerings, pensions, health services, career opportunities, and retirement benefits.
Enhancing Total Compensation
Makey has been using its own services and products to enhance its total compensation policy. In the year 2008, Makey embraced the power of total rewards to achieve its business goals. Since then, the firm has been using its goods and services to support the needs of its workers. The employees use company-owned gear such as canoes and tents. It also offers onsite fitness programs.
The workers also get various benefits such as store discounts. The firm uses its profits to help every worker connect with the major values outlined by Michael Makey. This practice is currently undertaken in different countries across the globe. For very many years, profit-sharing has remained a major practice at the company. Performance-based bonuses and cafeteria-style health care are also used by the corporation to empower more workers. These practices show clearly that the company’s services and goods play a key role in enhancing the total compensation strategy for its employees (Kantor & Kao, 2004).
The use of different services and products is a common practice embraced in other organizations to enhance employee compensation. Many successful companies have been using their resources to support the welfare of their employees. Consequently, such firms have managed to realize their business potentials. For example, Apple Incorporation has an initiative known as Blue Sky (Abdelsamad et al., 2010). This initiative allows workers to spend their time focusing on personal projects that add value to the company.
As well, the company has been offering discounts on different products. The workers are also allowed to undertake various charitable programs. The other employer embracing a similar strategy is Google. This corporation uses various perks to attract, empower, and retain talented employees. For instance, Google offers free medical checkups, haircuts, nap pods, and gourmet cafeterias to ensure every worker is satisfied (Eskesen, 2013). This practice explains why these two corporations have huge market shares in their respective industries.
I strongly believe that it is a good idea for companies to use their products to empower their workers. The workers present their skills and competencies thus making it possible for the targeted firm to improve its performance. The employees offer the best services that can result in profitability (Waldman, 2011). The use of various products or services to compensate workers is a positive practice capable of retaining the best workers. The strategy supports a company’s model thus attracting more stakeholders and customers.
The total rewards concept has the potential to support more companies and make it easier for them to realize their organizational objectives. The analysis of Makey and Google shows clearly that the use of rewards can result in competitiveness. Every company that wants to achieve its business potentials must address its major HR problems using the most desirable compensation packages for its workers.
Company’s Strengths and Weaknesses
The strategic review undertaken by Makey outlined several weaknesses at the company. The review indicated that the firm’s financial and human resources were unable to support internet sales and retail expansion. As well, the company’s market was also becoming competitive as more consumers became technically-savvy and cost-conscious.
The company also lacked employees with the required technical skills to offer competitive services to the global consumer. With such weaknesses in place, Makey decided to use various strategies in an attempt to realize their potentials. The company’s total rewards strategy played a positive role in minimizing such challenges.
For instance, the company used performance-based bonuses to attract and retain more workers who possess the required technical skills. Outdoor adventures and trips make it easier for every worker to connect with its business values. The plowed profits are also used to reward every employee. Consequently, more stakeholders have continued to invest their finances, outdoor values, careers, and social services in the enterprise. The company also offers housing subsidies and commuter costs to its Japanese workers.
The company also shares its profits with different employees. These initiatives encourage the targeted employees to support the company’s mission and business value (Odunlade, 2012). This analysis, therefore, shows clearly that Makey’s use of an effective total rewards strategy has transformed the major internal weaknesses into strengths. The corporation should continue to use such strategies to address various HR challenges that might be encountered in the future (Kantor & Kao, 2004).
Recommendations
In February 2015, Makey recorded annual sales of around 2.9 billion US dollars. The company also expanded its pension plan because it was performing well. The implementation of the strategic report in 2008 played a major role in increasing the firm’s profitability. The total rewards initiative has transformed the performance and effectiveness of the company’s employees.
The company can also expand its benefits. By so doing, the company will be able to alight HR with the accomplishment of its values and goals. Makey can consider a combination of various strategies or packages to support the needs of its key employees. Vogel (2010) argues that the provision of favorable working environments will make the workers more productive. A flexible working environment will empower more employees thus increasing the level of profitability.
The work-life concept has been applied in many firms in an attempt to improve the performance of many workers. Some workers are motivated by innovative projects and technological advances (Odunlade, 2012). Makey should hire this category of workers and offer them the required support. This strategy will attract technologically-savvy employees and eventually deliver positive results. Stock options should also be introduced at the company. The company has been performing well within the past few years. The provision of stock options encourages employees to stay and commit themselves to the goals of the company (Waldman, 2011).
Makey can also introduce commissions to remunerate its salespersons. This approach will ensure the salespeople are dedicated and ready to support the firm’s mission. A wider focus on environmental conservation and corporate social responsibility (CSR) will appeal to more individuals in various corners of the globe (Waldman, 2011). These initiatives will make it easier for the company to attract competent individuals who can deliver positive results. In conclusion, a combination of these benefits at Makey will align HR with the accomplishment of every organizational value and goal. A motivated employee will definitely work hard to achieve the targeted goals. The managers at Makey should, therefore, consider these suggestions and recommendations to achieve every business goal.
Reference List
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Odunlade, R. (2012). Managing employee compensation and benefits for job satisfaction in libraries and information centers in Nigeria. Library Philosophy and Practice, 1(1), 1-12.
Vogel, D. (2010). The private regulation of global corporate conduct: achievements and limitations. Business and Society, 49(1), 68-87.
Waldman, D. (2011). Moving forward with the concept of responsible leadership: three caveats to guide theory and research. Journal of Business Ethics, 1(1), 9875-9883.
