Question

Total rewards, originally introduced in 2000, has evolved to depict the strategic elements of the employer-employee exchange as well as to reflect how external influences and an increasingly global business environment affect attraction, motivation, retention and engagement.

1. Describe the elements to a competitive and desirable total rewards system.

2. How will this concept assist a company to achieve their strategic goals?

3. Discuss the perspectives and the challenges of balancing a global workforce.

4. What generational considerations need to be addressed in 2016?

5. What external influences affect a Total Rewards system?

Expectations: In 5 pages, and applying theory, answer the above questions. Share your company’s (or another company) Total Rewards philosophy. Describe the components, their purpose, the administration and delivery of the program and if it has been successful in the growth, prosperity and success of your company. Reply to these questions in essay (not Q & A) format. Provide a graduate level introduction paragraph, and conclusion paragraph.

Answer 1

1. Components of total rewards system are:
   • Compensation: This includes base salary along with other fringe benefits as well.
   • Recognition: Employees feel motivated when they are recognized for any work. This will allow further dedication towards work as well as for the betterment of the company.
   • Benefits: This includes medical care, Medical Insurance, Paid leaves, paid vacations, etc.
   • Work/Life Balance: More then anything else, if the employee is happy with their work, they are more likely to remain committed to the work and be more productive. Thus, It is an essential part of the total rewards system.
   • Development: Every employee likes to get a promotion or wants to have advancements in their career. If they are not getting any growth in their career, then it is necessary for the company to properly facilitate employee growth and development.
2. This total rewards system will result in more employee retention, more productive employees, reduced hiring cost, more employee loyalty. All of this contributes to better performance by the employees and thus resulting in a company achieving its strategic goals. Good overall compensation programs recruit, maintain, and inspire workers to do their best job and they can be constantly updated to keep staff motivated and fulfill the changing professional and personal demands of workers during their job periods.
   A plan of Overall Incentives will allow companies to adjust their expenditures and distribute their total budget according to company demands and financial restrictions. Around the same time, managers should match incentives closely with workplace expectations in order to offer the highest benefit, encourage individual habits and achieve higher efficiency.
3. Global globalization is an aim for many organizations, and for many a reality. Getting company locations in many countries will help to expand an organization's scope, impact and, of course, sales by adding new experiences and methods of operating into the mix. Nonetheless, there are numerous obstacles to educating an employee base that must be taken into account to ensure consistency across boundaries competitiveness, processes, and the consistency of business services.

• Linguistic diversity: language differences remain the most widely cited obstacle for training a global workforce. To order to address language barriers, it may be necessary to recruit many workers from the new location who understand both the native language and the language of which the bulk of the training materials of the company are in.
• Cultural issues: cultural variations can make it difficult for employers to recognize employee motives and aspirations in an environment. Business ethics classes and cross- networking workshops are available and can be highly useful in recruiting and handling employees in various countries.
• Increased recruitment costs: before spreading internationally, it is very important to realize and teaching global workers can be much more costly than recruiting a home team. Education programs will be updated with responsiveness to cultural norms, appropriate terminology and vocabulary, and the capacity to connect effectively electronically or with a visiting teaching team. Most organizations make the error of allocating a limited budget for cross-border preparation, which may create significant problems when it comes to expertise for the workplace, retention of workers and profitability in the newly developed location.
• Deficient technical infrastructure: the use of electronic technologies can seem to be an efficient tool for preparing a global workforce, but it is important to provide an in-depth approach to training. Dispatching support teams or supplying team members with tools that can be used for connectivity and preparation could be important
• Time zone variations: time zone changes can impede the usefulness of using webinars for support coordination. Time zone variations should be taken into account in advance for better outcomes so that training can be planned for times that make sense for the venue.

1. The external factors that influence the Total rewards system are:
   • Labor market: If the standard wages are too high then the company is looking for, then it might affect the implementation of a total rewards system.
   • Standardized rate: Competitors who are paying more will also affect the implementation of a total rewards system as a competitor who is paying more will definitely attract more talent then the one who is paying low.
   • Efficiency: The income decreases as the output decreases. The employees also ought to focus on their improved efficiency in order to gain better, which may be changed by circumstances outside their influence.
   • Cost of Living: The cost of living factor often affects the pay of the workers in such a manner that the wage or salary is to be adjusted along with the rise or decrease in the general market level and the sales price indices.
   • Trade Unions: The strong labor unions have an impact on the company's pay program. For the situation where the demand is higher, the trade unions are usually established and the source of labor is reduced or engaged in risky jobs, which thus demands more resources to endanger their lives. Non-unionized firms or industries have greater flexibility in deciding the pay schedule.
   • Labor legislation: There are numerous regulations enacted by the Government to shield employees from the abuse of employers. Payment of wages Act 1936, Minimum Wages Act 1948, Payment of Compensation Act 1965, Fair Remuneration Act 1976, Payment of Gratuity Act 1972 are several of the statutes enacted in the protection of labor, and all employers have to cooperate with them.