Top Five Items In A Total Rewards Package Essays Examples

Last year, the number of unemployed Americans began to creep down as a strengthening economy begins to provide for jobs (Taborda, 2015). In February 2015, the rate for Americans looking for work but still without employments was 5.5 percent; this is the lowest figure since May 2008. Employers added 321,000 in November with 36 percent of companies increasing full-time staffers. For human resources departments, this indicates the necessity to attract the top performers available for expanding payrolls. In order to do so, monetary compensation is not the only factor prospective employees are considering. While salary is obviously important after years of pay freezes and raises given at below-inflation rates, companies are looking at both attracting and keeping the best corporate producers.
Skade (2015) cites the importance of have high levels of job satisfactions as essential for the goal of managers nationally. Jack Hammer Executive Headhunters CEO Debbie Goodman-Bhyat states “What became abundantly clear is that it is definitely not all about the money”. Leadership, corporate culture, and values rank alongside the desire to be challenged and yet have a balance between work and external activities such as family commitments.
In order to keep and recruit the best employees, there are five elements of rewards packages offered: Compensation, Benefits, Work-Life Balance, Recognition and Performance, and Development with Upward Mobility. By employing the correct proportions for employees in these five areas, employees are satisfied and engaged, resulting in optimum job performance and productivity.

Compensation

An attractive salary is the primary focus of any job package. However, incentive payments are also an important component when talking about income (Duchon, 2015). These are specified amount offered for attaining a level of output, particularly for managers. When addressing individuals, these must be expressly described. For some employees, this could mean daily input and for others, monthly or quarterly. Managers have broken incentives down in the categories of the organizational, departmental, or individual achievement. A form of pay-for- performance philosophy, this type of incentive program has the ability to lift a corporate culture into a meritocracy mindset. For an incentive program of this type, it is crucial for supervisors and manager to provide continuous feedback and training in addition to periodic evaluations.

Benefits

The benefits portion of a reward package includes enrollment in programs that promote protection of the employee and his family and constitute about 40 percent of wages (Duchon, 2015). These include medical, vision, and dental insurance (fully or partially paid), long- and short-term disability, workman’s compensation, social security, plans for prescription drugs, retirement plans in the forms of pensions and 401k’s, and life insurance. In addition, allowances for paid time off such as sick days, personal days, vacation days, and holidays are attractive. Many employers are allowing staff to select the benefits most important to them and their families. For instance, a young single person may place more value on the number of annual vacation days offered than a large life insurance policy. This can become a beneficial situation for both the employee and the company.
Attractive benefit packages have impact past getting a promising employee onto the payroll. It improves the quality of life for the workers, increases loyalty and the motivation to stay with the company with creates the consequence of increased production. Businesses that offer the opportunity to select benefits to attract, keep, and motivate the best employees.

Work-Life

With such a large portion of the workforce consisting of young people with families, it is important to know that this age demographic places a high value on time spent outside the office (Johnston, 2015). Toward that end, employers should offer opportunities to balance personal and work time. Workers appreciate managers who understand a schedule that allows rest and flexibility for care of children or elderly dependents. Workout facilities and on-site child care are worth the expense to promote relaxed and health employees. Progressive companies offer wellness programs, nutritional counseling, workshops for interests such as stress reduction, and health screenings. To cut insurance premiums, more and more businesses are offering anti-smoking programs. There are also financial services that offer retirement planning and investment counseling to help staff become more comfortable with their salaries and money management.
Creating a fun work environment can go a long way toward retaining the top younger employees (Martindale, 2014). A break room with a table tennis or foosball table offers a mental break while promoting office friendships. Promotion of activities outside the business location, particularly with family involvement, supports this goal. Community activities, picnics, and charitable events allow a blend of work and play.
The option for flexible scheduling is very attractive to some employees. Many companies offer the ability to work from home fill-time or part of the time for certain positions. Some part-time workers share one work station to allow optimum use of space. Some businesses even have a window for specific positions where the worker can come and go at will as long as production goals are met and a certain numbers of hours are worked. The opportunity to take sabbaticals is very important to some employees in their benefits package (Duchon, 2015).

Performance and Recognition

An area that was overlooked for years by employers is that of performance and recognition (Johnston, 2015). An award system by peers and for teams allows appreciation by co-workers for outstanding performances. Managerial and peer awards achieve different goals, with one noticing productivity and another highlighting working with others. A company offers challenges to allow this type of specific achievement, and changing the goals offers workers who excel in one area rather than another chance for recognition. These rewards can be as inexpensive as postings on an online employee site on a bulletin board announcement. Tokens for break room items or lunches are also cost-effective methods of showing appreciation.
It is important for managers to keep current on awards programs (AWLP, 2015). If they are put in place, then achievements are overlooked or go too long before recognition, the effect can be disillusionment or frustration. Then, the awards program results in the opposite effect of the one intended. Goals can also reinforce improvement rather than reaching a production goal. Recognition of perfect attendance, compliments by clients, and other standards of performance can promote a corporate culture that creates a reputation for a company that lures prospective employees.

Development and Career Opportunities

A survey published in the Kelly Global Workforce Index in September 2014 states 59 percent of workers value the change to learn new skills higher than a pay increase (Martindale, 2015). Particularly for new graduates or employees recently entering the workforce, the opportunity to increase their value to the company is very attractive. Planning for the future through additional training on the job provides them a buffer in case of relocation, but also opens doors for advancement within the company. Some businesses offer tuition reimbursement, while others promote personal development through mentoring programs, outside seminars, or training workshops.
Johnston (2015) proposes that offering professional development opportunities will improve loyalty to the company, but also increase the skill set of the staff. Particularly in the field of technology with its constantly changing need for training, older employees welcome the ability to keep in step with younger co-workers having more exposure before hiring. Managers who incorporate career planning into performance reviews help employees mold their skills toward desired promotions (AWLP, 2015). Assignments can rotate into progressively more responsible positions for on-the-job training of a less formal type. Promoting from within promotes aspiration by current employees and gives them the chance to upgrade their skills to meet the requirements of an impending opening.

Conclusion

The implementation of complete reward packages has increased for corporations over the past several years (AWLP, 2015). Using multiple factors to attract and retain top employees promotes corporate success over the long-term. As seen in Graph I, the combination of rewards tailored to fit the needs and goals of employees result in more satisfied and engaged workers who produce optimum results.

Graph I. Interplay of rewards packages toward best results (AWLP, 2015)

Savvy managers and companies in touch with reward packages that attract the best workers will find retention drops and production increases. Browne (2005) estimates the cost of replacing a staff member who leaves through termination or resignation is twice the annual salary for the position. For that reason, retention is as important to companies and recruitment. The activities for these purposes require constant surveillance, but the results are worth the effort.

References

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