Total Rewards Proposal
A total rewards approach is a plan put into effect by a company that offers financial, advantageous, and growth-oriented benefits to staff members who meet particular objectives. The program incorporates monetary and non-monetary compensation alongside prospects for personal development in a supportive professional setting (Bailey et al., 2018). This modified definition of overall compensation emphasizes creating positions that promote creativity and teamwork.
It also stresses how crucial it is to give the employees the resources and instruction they need to succeed. These measures allow the employees to feel that the company cares for them and to understand that they are valuable workers (Bailey et al., 2018). It motivates them to contribute more to the company’s development.
Introducing the total rewards system aims to attract specialists and retain them in their position, which justifies the company’s use of the package. In addition, implementing this plan allows the company to develop as a team and achieve its business goals because the employees are motivated to grow as professionals (Bailey et al., 2018). In other words, total rewards packages are valuable to the employer because they help the company hire talented employees and work with them for a long time (Bailey et al., 2018). It contributes to the company’s growth and development and creates a positive image of the organization among the employees, which is essential for the company’s promotion.
Total Rewards Package
Several vital components of the total rewards package include monetary and non-monetary rewards. The difference is basically in the format of compensation the employee receives. Monetary compensation is a direct payment for specific actions, while non-monetary rewards can vary.
A whole rewards package, supplementary to the average salary, includes savings for retirement, holidays, work-life flexibility, advancement in career education opportunities, and wellness initiatives (Bartlow & Harris, 2021). There are also mandatory and optional benefits like disability insurance, financial guidance, and serious medical condition coverage (Bartlow & Harris, 2021). Generally, the combined amount of an employee’s financial and non-financial benefits is their total reward.
It is possible to describe the value of the total reward as the overall improvement of the company’s image from the perspective of the employees, who find it more attractive to work. The value of monetary compensation is evident because it allows the employee to choose how to spend this sum. The company does not regulate the use of the money the person receives from the organization, and all employees may find out how to spend it effectively.
The value of non-monetary compensation is more complicated because it supposes social, health, and educational opportunities and flexibility of working hours (Bartlow & Harris, 2021). These bonuses allow the individual to choose the optimal way to use the benefits of the total rewards package. In all cases, the worker will use those advantages they need, enhancing the company’s image. Additional incentives make the company different from its rivals, and they can make talented professionals stay in the organization.
Talent Retention
A potent recruiting weapon is disclosing the total rewards received by employees. It gives candidates a more thorough understanding of all the advantages of working for the organization, enabling them to decide more wisely about the job opportunity. Over forty percent of workers claimed they would accept a lower-paying position for improved rewards such as schedule flexibility and remote working options (Hur et al., 2018). Additionally, survey participants said they equate telecommuting with a 4.1% pay rise and flexible working hours with a 9% pay rise (Hur et al., 2018). The company can attract top talent and persuade applicants on a waiting list to accept the offer for a position by being open regarding these benefits in descriptions of jobs and offers of work.
The total rewards component is vital in attracting and retaining talent because it shows that the organization pays attention to workers’ needs. It is critical for the professional self-esteem of potential employees with extraordinary qualities (Hur et al., 2018). In addition, it makes the company stand out from the rest of the propositions on the market (Hur et al., 2018). For instance, flexible working hours and remote work are valued by many people because they reduce the stress of spending all day in the office environment.
At the same time, it does not decrease the quality of their performance, which is essential for business. Health insurance provided by the company is essential in supporting the physical and emotional well-being of the employees, who understand that the company cares for them. The organization’s educational opportunities allow employees to grow professionally and develop. People value these opportunities because they require time and money if the company does not propose them as part of the total reward package.
Employee Value Proposition
Companies typically determine the individual overall compensation of each employee and present it to them in the form of a total awards declaration, either alongside a letter of offer for recruits or during annual performance assessments for workers. Employees will better appreciate the value of their employment with the business (Fang et al., 2019). They will be better aware of all the internal initiatives their organization has implemented to support them as individuals and professionals.
It is possible to describe the employee value proposition as the cost the company is ready to pay for their work. This notion includes the total rewards price and the salary the worker receives officially. Therefore, the value of the employee is the combination of the components mentioned earlier that the company is ready to provide. The employee value proposition should correspond to the level the worker perceives, or it should be better so that the employee will not feel humiliated (Fang et al., 2019). People typically make their choices concerning the new place of work based on the rewards and compensation the company can offer them.
References
Bailey, A., Barron, S., Curro, C., & Teague, E. (2018). Global encyclopedia of informality, Volume 2: Understanding social and cultural complexity. UCL Press.
Bartlow, A., & Harris, T. B. (2021). Scaling for success: People priorities for high-growth organizations. Columbia University Press.
Fang, T., Lee, B., Timming, A. R., & Fan, D. (2019). The effects of work-life benefits on employment outcomes in Canada: A multivariate analysis. Relations Industrielles / Industrial Relations, 74(2), 323–352. Web.
Hur, W.-M., Moon, T.-W., & Ko, S.-H. (2018). How employees’ perceptions of CSR increase employee creativity: Mediating mechanisms of compassion at work and intrinsic motivation. Journal of Business Ethics, 153(3), 629–644. Web.