Question

A large fashion retailer, FashionCo, is experiencing decreased sales and wants to improve the performance and productivity of its salesforce. Discuss the most effective reward strategies that FashionCo could use to help motivate employees and improve performance. In your answer, consider total rewards and compare the appropriateness of individual versus collective rewards, in this setting. (750 words)

Answer 1

Answer-Reward strategies are important to improve the productivity of the employees as well as enhance their performances. Rewards to employees are of different forms like performance-based rewards, and career based rewards and environmental rewards. Total rewards describes comprises of all monetary as well as non-monetary investments that a company uses to enhance their worker's productivity.

Total Rewards has two important components which differentiates it from other rewards. The two components are-

1. Program: The first characteristic is that the reward scheme must consist of a well-defined, specific and special programme for the employees.
2. Value: Another characteristic of total reward is that the reward component must have some values for the employees. It means that the employees must find the total reward valuable in their eyes of the employees.

The most effective total reward strategies that FashionCo could use to help motivate employees and improve performance are-

1.Differentiation and segmentation of reward programmes-

To pay rewards and bonus, the company must differentiate between high performer, average performers or low performers because in the present context, one size doesn't fit all and the needs of peoples are different. For example, high performers look for career advancement, while low or average performers looks for job security and perks. So, company should differentiate and make segment of employees and then plan rewards accordingly.

2. Flexibility of the reward: Flexibility means that the rewards that employees recieve must be flexible and depends upon what kind of bonus or incentive the employees want. For example- A company before introducing any bonus plan must approach the workers and and ask questions what kind of pay or benefit do they want. Flexibility will be an attraction element for employees.

3. Technology : Use of technology for total rewards is very important because with the help of technology, the employees can be given information about the reward portfolios, type of rewards and benefits, the workplace and its environment and accordingly make the empowered choices that he or she wants. Technology can also be usede for dissemination of the rewards among the employees.

4. Analytics for decision making : Analytics helps in the inclusion of all class of employees in the process of decision making for the company other than the HR or managers. It includes problem sharing by all workers and helps to solve all problems related to wages and benefits, flexibility or health & well-being and to find out what the employers expect on their rewards policies.

5. Communication: Another effective reward strategy is communiction with the employees to increase their awareness about the reward policies designed for them. There must be transparent and openness in case of benefits they recieve and communication ensures these.

Total rewards are must better than individual rewards for bothe the company and the individual. Companies cannot provide all the individual rewards as budgets are getting tighter. Thus, total Rewards are designed keeping in mind the big picture i.e. enhancing employees productivity along while taking care of the company’s business and HR strategy. A good total rewards is of value for the company in the form of more returns from employees and is of value for the employees in the form of total benefit package in the form of rewards.