Proposed Total Reward System
This research-based assignment focuses on the latest available information about creating, organizing, and managing a total rewards program. Envision a service-based (insurance, telemarketing, or other) profit organization that employs 20,000 employees in 17 different countries. There are 2,000 management-level individuals who speak a variety of languages. The company employs diverse individuals who are governed by multiple regulatory environments.
Write an 7- 8 page paper in which you:
1 .Create a brief overview of the company requirements for a total rewards system.
2. Formulate a total rewards strategy to encompass the fundamentals of compensation and the regulatory environments.
3. Explain the advantages of the total rewards strategy you are proposing and how it might satisfy the employees’ needs.
4. Determine the key communication components of the total rewards system.
5. Indicate your strategy for devising a competitive pay structure.
Hiave’s Proposed Total Reward Systems
The total rewards system is an essential organizational practice that propels a company’s internal and external success. A firm that focuses on employees’ intrinsic and extrinsic needs has an enhanced competitive edge in the market niche in comparison with organizations that have a base pay reward strategy only. Hiave is a telecommunication company that has a global footprint in 17 countries. The firm has 20,000 employees and 2,000 management-level individuals who speak different languages. Hiave employs diverse individuals who are governed by multiple regulatory environments. Hence, Hiave has a multi-functional total rewards system that observes the fundamentals of each reward while complying with each host country’s regulatory policies. The firm’s total rewards system has multiple advantages for Hiave’s employees and the firm. Hiave also has an elaborate communication plan for the company’s total rewards systems. Moreover, the firm ensures that it designs competitive pay structures for all its employees.
Brief Overview of the Company’s Requirements for a Total Reward System
A total rewards system should align with the company’s goals and strategies. Additionally, it should encompass the organization’s culture, besides fostering employee growth within and outside the firm. Hence, Hiave has a well-established total rewards system that ensures that the firm maintains its competitive edge in all host countries (Narang & Sharma, 2018). Hiave also provides that its total rewards system values and recognizes employees who consequently react by positively aligning their output with the firm’s values, objectives, and culture of teamwork, professionalism, integrity, and pragmatism. Hiave has five essential rewards that cater to employees’ intrinsic, extrinsic, direct, non-direct, financial, and non-financial needs.
The firm will have a compensation system that incorporates base pay, merit pay, incentives, promotions, and pay increase. The base pay is the mandatory pay that an employee receives for accomplishing their responsibilities as expected by the firm. Merit pay is a base pay increase that workers receive for performing above the organization’s expectations. Hiave will have an incentive system that rewards staff with cash and stock for outperforming their duties. The firm will also promote individuals by increasing their pay for their new, higher job standards. Finally, Hiave increases the base pay for long-serving employees every five years.
Additionally, Hiave will have benefit plans for all employees in all the host countries. The firm will have health insurance, and welfare plans that compensate workers for injuries or illnesses acquired when within and outside the work environment (Narang & Sharma, 2018). Hiave will also offer employees paid time off, paid annual vacations, and a three months maternity leave for employed mothers. Finally, Hiave will establish a retirement plan for all employees who serve the firm for a minimum of 3 years.
Furthermore, Hiave will have personal and career growth plans for employees in all the host countries. The firm will offer free training for all workers on site that will enhance their skills and knowledge. Hiave will further pay tuition fees for all permanent employees, besides granting them a paid study leave during the examination period. Additionally, the organization will have a performance management plan that helps employees to assess and improve their goals and strategies for self-benefit and organizational success. Moreover, Hiave will have a well-structured work environment that fosters employee performance and output. The firm will offer employees a paid gymnasium, television room, and in-house childcare facilities within the company premises. All employees will have a monthly meal voucher that they can use during their meal times. Additional recreational rooms will be constructed where workers can engage in indoor games. The firm will pay for bi-annual team building activities and annual staff parties. All outstanding employees will be recognized and rewarded during the annual parties. Hiave encourages employee innovation, and hence, all staff ideas will be appreciated and implemented where applicable. The firm has flexible working hours for all employees, besides offering paid company transport for early morning and late-night shift workers. Hence, Hiave will have a well-established total rewards system.
Total Rewards Strategy that Encompasses Compensation Fundamentals and Regulatory Environments
Hiave’s compensation plan aligns with the company’s goals and vision. The current strategy seeks to meet several employee and company wants that will drive the firm’s excellence. First, Hiave’s compensation plan is equitable. Hiave pays its employees equally across all genders, races, and ethnicities (Shodhganga, 2018). In all host countries, the lowest job grades adhere to the minimum wage that the nations prescribe. Hiave compensates employees using similar pay scales as other competitors. Second, Hiave’s compensation plan is efficient. Employee salaries are linked to their productivity, the organization’s profit, and staff performance at the group and individual levels. The firm also compensates workers based on their skill application. Third, Hiave’s compensation plan is designed to aid in the macroeconomic stability of the organization (Shodhganga, 2018). The business avoids exceptionally high minimum wages that may trigger inflation in host countries. Fourth, Hiave’s compensation model aims to achieve an efficient allocation of labor. The firm ensures that it considers the demand and supply of workers in host countries. Moreover, Hiave’s compensation plan aims to motivate employees to perform in their current roles. Hiave is aware that workers may possess the necessary skills to perform exceptionally in their designated roles. Nevertheless, they may underperform when they are lowly compensated. Hence, Hiave compensates its employees adequately to enhance their work motivation. Moreover, the firm aims to attract qualified candidates through its compensation plans. Hiave also retains its employees through the current compensation that is unmatched by all rival telecommunication firms in host countries. Furthermore, Hiave’s compensation strategy seeks to reward desired employee behavior and to induce future positive acts. Hiave’s compensation strategy complies with all legal regulations in host countries. The firm does not discriminate against any gender, race, or ethnicity when designing its base, merit, incentives, and promotional pay. Additionally, the organization meets the minimum wage requirements for all host nations. Hiave does not engage in child labor, besides not under compensating employees who are academically challenged. All compensation plans are well explained during the orientation process for new candidates. Hence, Hiave is compliant with all regulatory compensation requirements for host nations.
Advantages of the Proposed Total Rewards System
Hiave’s proposed total reward system will benefit the organization and its employees in several ways. First, the plan will enhance employee engagement that is critical for Hiave’s success in host countries. The firm’s workers will attain an improved personal satisfaction that will increase their performance and dedication for their work. The proposed total rewards system will enhance employees’ determination to engage their emotional, physical, and intellectual energies in their designated jobs (Hoole & Hotz, 2016). Hiave aims to induce a fulfilling and positive state of mind in all employees that will result in enhanced absorption, vigor, and dedication. The organization also seeks to enhance mental resilience in its workers that will result in improved company performance. Moreover, the proposed reward system will improve employee satisfaction that is vital for Hiave to achieve its mission and vision. Hiave aims to increase workers’ sense of identity through the proposed total rewards system that will result in quality output. The firm’s customer satisfaction in all host nations will consequently increase. Hiave will then have a competitive edge in all host nations that will ensure business survival even in the event of a global recession. The total rewards system further aims to strengthen employee skills through aspects, such as paid training and tuition for workers. Employees will have the morale to engage in challenging work when they have an environment that acknowledges their efforts, accomplishment, and skills. The firm’s current rate of turnover will also reduce when Hiave implements the proposed total reward system.
The proposed total rewards system will satisfy employee needs in several ways. Compensation and retirement plans will allow workers to meet their basic needs besides building their wealth (Hoole & Hotz, 2016). The proposed health and well-being model will ensure that employees are healthy enough to work and perform family duties. The education plan will enhance employee personal and career growth, while the paid leave and vacations will allow workers to bond with their families. Hence, Hiave’s total rewards system will meet employee needs beyond their expectations.
Key Communication Elements of the Total Rewards System
Organizations should effectively communicate their total rewards system to avoid employee dissatisfaction. Firms should determine who will inform workers on the proposed policies, the right communication media to use when they tell workers on impending reward systems, and how the communication will be affected. Hiave will inform all workers about the proposed compensation systems while adhering to essential communication elements of a total rewards system. The firm will first notify the senior management in all host nations about Hiave’s expected goal achievement through the designation of a total rewards system (Schneier & Muzumdar, 2015). Hiave aims to prove that it values all employees through communication on the goals of the total reward system. The firm will then request all the managers to identify the appropriate elements that should constitute the total reward system. Hiave will then design an appropriate and effective communication channel to inform existing employees and aspiring candidates about the firm’s total reward system. The proposed channel is the company website that is accessible to the public and internal employees. Hiave has a universal website that is translated into host countries’ languages. The firm will share its total rewards system on the website for employee and public access (Schneier & Muzumdar, 2015). Hiave’s chief executive officer will then write a message that reinforces the company’s intention to have a total rewards system, the benefits that are attached to each reward, and the categories of employees that qualify for every bonus. Hiave’s total reward website will have a disclaimer concerning the terms and conditions that the firm’s total reward system bears. The firm will ensure that the user interface is friendly and can be accommodated by all electronic devices. Hiave will conduct frequent analytics to assess website viewer feedback to help the organization implement corrective measures. Finally, the firm will incorporate the proposed system in its human resource management system. Hence, Hiave will adhere to all communication elements when communicating its total rewards system to employees and potential candidates.Strategy for Devising a Competitive Pay Structure
Hiave will design an effective pay system that will cater to employee needs and enhance staff performance for organizational success. Hiave will first perform a job analysis to identify a potential candidate’s job description that summarizes the responsibilities and roles that an employee should have. The firm will then design a job specification that explains the expected workers’ skills and knowledge that is mandatory to perform a job. Hiave will further have a committee that determines the value that is attached to a post based on its description and specification. The firm will conduct a job’s worth that should align with a company’s competitive strategy and a similar firm’s idea. Hiave performs a salary survey to identify the appropriate wage that may be assigned to particular jobs (Deloitte, 2017). The study must factor the extrinsic value of a role in comparison with the pay the job attracts in similar firms. Hiave will then combine the results from the salary survey and the job evaluation to create a pay grade for all employees in host countries. Employee pay grades must be designed in a secretive manner by top management and human resources administrators to prevent internal organizational conflicts that can affect the firm’s performance. Hiave will identify a reasonable merit pay that compensates workers based on their performance rating. Highly-paid employees will have different pay merit in comparison with their lower-paid colleagues(Deloitte, 2017). Hiave will also have a promotional pay that will be determined by an employee’s past performance and their ability to handle future increased work duties. Finally, Hiave will have an incentive plan that will reward employees using cash or stock bonuses. Hence, Hiave will establish a well-designed compensation plan that benefits all employees.
Hiave is a telecommunication firm that is found in 17 countries globally with a 20,000 employee base and 2000 managers. The firm plans to design a total rewards system that will enhance employee performance and increase the firm’s success. Hiave plans to communicate to all employees the essential steps that will be observed while designing the total rewards system, besides creating an effective pay plan that benefits all employees in host countries. Hence, Hiave will have a beneficial total rewards system for workers.
References
Deloitte. (2017). Total Rewards Practices Survey. Retrieved from Empsight website: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/human-capital/us-cons-total-rewards-survey.pdf
Gulyani, G., & Sharma, T. (2018). Total rewards components and work happiness in new ventures. Evidence-based HRM: a Global Forum for Empirical Scholarship, 6(3), 255-271. doi:10.1108/ebhrm-12-2017-0063
Hoole, C., & Hotz, G. (2016). The impact of a total reward system of work engagement. SA Journal of Industrial Psychology, 42(1). doi:10.4102/sajip.v42i1.1317
Schneier, E., & Muzumdar, A. (2017). Total rewards communication handbook. Lulu.com.
https://hrsoft.com/wp-content/uploads/2016/03/Total-Rewards-Hanbook.pdf
Shodhganga. (2018). Chapter 1: Compensation. Retrieved from https://shodhganga.inflibnet.ac.in/bitstream/10603/176235/10/10_chapter%201.pdf