Assignment Sample on P31796 Resourcing and Talent Management
Introduction
In the following study, the focus would be to analyse the total reward systems in the workplace and it impacts on the motivation of the employees and their performances (Anku, et al. 2018). In the primary section of the study, a brief discussion would be presented in terms of the total reward system. Furthermore, as the study would progress, the impacts would be discussed which are put forth by the total reward systems. Adding to that, employees can also be encouraged to produce high performances to acquire the rewards which would be discussed in depth in the study. Finally, the challenge would be showcased for implementing total reward schemes.
Discussion
A total reward scheme can be referred to as a term that is adopted to describe a strategy of reward that would bring together all the investments of the company in regards to the workforces (Anku, et al. 2018). It can be stated that there exist different pillars of this reward system which are benefits, compensation, performance negotiation, flexibility, career development, employee motivation, retention, and others. The main objective of formulating this scheme is to go beyond the general pay to the employees and to acknowledge them with the extended benefits that they would acquire with their dedicated work (Jaworski et al. 2018). This scheme can also assist in developing the culture of the organisation along with attaining the organisation’s objectives. The engagement of the employees can be promoted and therefore, can assist in increasing the collective performance of the organisation. The total reward scheme aims to provide the employees with a choice to avail for the rewards with their performances and high quality of work. This psychology in turn results in enhancing the employer and employee relationship. The approach of the total reward scheme can be regarded as a long-term approach benefiting the organisational culture enhancing the employee’s performances (Paais and Pattiruhu, 2020).
The total reward scheme not only provides monetary rewards but also provides non-monetary rewards to the employee which includes recognition, certification, mental well-being, job satisfaction and others (Kaur and Sharma, 2019). Money can be regarded as the primary aspect of human wants for the purpose of survival. However, beyond the aspect of money, every employee wants to be recognised for their high quality of work and performance, which can alternatively also contribute to employee retention from the company’s end (Rakhra, 2018). Furthermore, the companies which are successful in providing both of these aspects can create a healthy working environment with rich culture, maintaining the mental peace of the employees. Adding to that, the reputation of the concern also gets enhanced. Employees often find work in such places which form policies considering the needs and values of the employees (Sarfraz et al. 2018). Therefore, such organisations that take additional steps to provide a healthy work-life balance to the employees can attract an extensive number of employees without bearing huge expenses on hiring processes due to increased reputation. Adding to that, every company wants to increase the performance of the employees which would assist in increasing the productivity of the company. Therefore, through these total reward schemes, motivation can be achieved to a great extent and through motivating employees, their performances can be enhanced (Kaur and Sharma, 2019). Furthermore, with higher levels of productivity, the company can generate huge revenues and the employees can alternatively earn more rewards for their heightened performances benefiting the company in several ways (Boudreaux, 2021). In regards to this, companies can apply expectancy theory as well for better application of the Total reward system.
However, the success of this scheme depended extensively on the communication level of the management with the employees of the organisation. Clear communication can make the concept and the benefits of the total reward system to the employees clear (Tripathy, 2018). Furthermore, the terms and conditions also need to be understood by the employees to vail the scheme appropriately. Therefore, the communication system of the organisation needs to be flexible to bring success to this scheme. Adding to that, it needs to be stated that the basic consideration for joining an organisation should always be salary. Salaries are said to be the foundation of every other element upheld for increasing the engagement of the employees. After perceiving the just and equitable basic salary of the employees, further communication needs to be done for acknowledging them with the extended benefits of hard work of the employees (Talapatra et al. 2019). However, the dependence on the success of the scheme can be on the managers to a certain extent. Furthermore, it has also been seen that employees often leave organisations due to the managers, not the organisation itself. Therefore, the approach needs to be communicated appropriately and on the regular basis by the managers for creating a healthy environment with success to the approach of total reward scheme. Moreover, with the successful implementation of the scheme, the organisation can gain competitive advantages over its competitors (Singh et al. 2019).
An organisation’s unified policies, and mechanism for recognising the individual in regards of their commitment, abilities, and perspective, as well as their valuation, are referred to as an employee reward. The layout of the organisation’s inventive concepts, methods, and regulations is used to form this framework (Beck et al. 2018). It comprises a plan in the shape of a sequence, pattern, or framework that will provide and maintain the appropriate quality and degree of salary, bonuses, as well as other types of compensation. The goal of the incentive system is to “recruit, develop, and motivate” employees. This technique is essential in ensuring work engagement by delivering the most appropriate motivator component for each individual. As everyone has various wants and aspirations, they are motivated by different things (Knight et al. 2019). For example, several people want a reward, while others want a feeling of accomplishment or a raise to a superior division. As a result, such factors have an effect on their work productivity, behaviour, and motivation.
Employees’ productivity and contentment are just what defines how far they develop, very well how they accomplish, and how active they are in their employment. Workplace care is critical because so many people are unhappy with their job positions based on a variety of factors such as increased commitments and volume of work, dissatisfying incentives, and so on. Due to these critical factors, the employees are not being able to get motivated and encouraged so easily. As a response, employee relationships and problem-solving are crucial (Pinar et al. 2018). A rewards system is frequently employed as a technique for improving employee productivity. Monetary reward system, non-monetary reward system, employee assistance program and employee recognition programmes are the four basic reward systems that are being employed by the organisation. However, with the recent emergence of the covid-19 pandemic, the resulting shutdown is slowing down and keeping a dominant approach for staff.
All of the corporate employees are accomplishing their duties utilising internet conversations and online streaming sessions, as a result, they are lacking attention as a result of working at home (Sivarajah et al. 2020). To maintain a steady stream of employment, workers agreed-upon payments are deposited into their savings accounts. Encouraging employees with rewards and incentives is the best way to connect and motivate employees, which really is challenging to comprehend in the simplest manner (Iivari et al. 2020). The staff are rewarded for attending a meeting and putting forth their greatest motivation to attain work under difficult situations. This reward will develop an urge among the employees to be effective with their approach towards the workplace. During this entire method, the employees are being motivated to work and perform better. Organisational success depends on employee performance and the performance of the employees are directly interlinked with their motivation level (Ali and Anwar, 2021).
From the above discussion, it has been understood that for employee’s productivity, a well-organised, reasonable, and most importantly recognition and reward system plays a huge role. Employee development is affected by incentive schemes because employees feel acknowledged by their supervisors for their good graph (Al-Hawari et al. 2020). Consequently, it is important to provide personnel with the “desire” or motivational element that will increase employee motivation and ability to execute the work successfully.
A purpose of enhancing productivity for example, would result in a reward that would instantly inspire the individual to accomplish their respective deadline, which will allow the company to be effective with their deliverables and commitment (Al-Jedaia and Mehrez, 2020). Furthermore, rewards are not really in the form of capital. Non-monetary tactics such as “employee of the month”, an “unexpected day off”, “sudden day out” at restaurants and clubs and so on are sometimes used as compensation systems. The motivation of employees is expected to grow as a result of such rewards, as they enable them to feel respected and valued at the workplace (Ali and Anwar, 2021). For instance, Google Inc is one of the organisations that believes in motivating staff extensively by providing efficient structure and clarity to all the employees. It has been reported that Google allows their employees to spend 20% of their work time developing new and creative ideas at the workplace which allows them to be enthusiastic and motivated towards their own approach (Vozza, 2018). However, the motivation of employees is not easily obtainable; that is something that management teams must cultivate and supervise which will be reflected in the next succeeding segment.
The attributes of total rewards schemes are explicitly utilised in terms of providing recognition to potential organisational employees and workers with their high performance (Hussain et al. 2019). As mentioned before, the consequences of total rewards schemes usually maintain a transverse relationship with the employee motivation level that can drive an organisation performance towards excellence. This attribute has been highly signified by several business organisations as an integral part of ensuring high performance with the consideration of workforce flexibility. In terms of outlining real business evidence of this attribute, the context of a renowned global organisation Microsoft can be undertaken. Microsoft has looked forward to providing total reward schemes for their potential employees and workers (Microsoft, 2022). For example, both financial and non-financial employee benefits package can be highlighted from the organisational perspective that has been supporting and investing under the shape of an employee-oriented approach. The company has eventually disclosed adequate commitment to conceptualising employee welfare through sustainable and dynamic strategic programs. These programs are usually outlined with an intention of reinforcing the organisational culture and value.
Employee wellness and safety is highly committed by Microsoft within the workplace which is also added with a greater value with the inclusion of a comprehensive benefits package (Microsoft, 2022). This aspect has added great value to the organisational financial standing over the global market, which also discloses the positive implications of total reward schemes that has also motivated and encouraged their employees to provide the level best performance. As an example, the revenue generation of Microsoft can be notified that has been experiencing consistent growth over the recent past. The organisational revenue for the twelve months ending September 2021 experienced a 19.81% increase as compared with 2020 (Macro Trends, 2022). Microsoft also ensured a 17.53% increase in their annual revenue during 2021 as compared with 2020 (Macro Trends, 2022). These statistics reveal the extremely hard work and effort from the organisation’s employees with profound motivation where a subsequent contribution is made by the total reward schemes. The consistent revenue growth of Microsoft also justifies the positive maintenance of total reward schemes for their potential employees that have been supportive to drive their performance level as well as improving the entire organisational performance in the market.
Similar consequences can also be deflected from the perspective of another renowned global service provider Google. The company is also noticed to put a profound focus upon providing employee benefits to a fair extent that have resulted in increasing employee satisfaction within the organisation (Google, 2022). As a result of this, Google has been able to empower its financial standings along with a competitive edge over the current market based on a flexible workforce. An immense boost over employee morale has eventually resulted in the profound growth of annual revenue generation within Google. The organisational annual revenue was USD 160.74 billion during 2019 which had come up to USD 181.69 billion during 2020 (Johnson, 2021). Despite experiencing the toxic impact of the covid-19 pandemic, Google was able to maintain stable growth of their financial profitability (Refer to appendix). This attribute discloses the positive implications of total reward schemes that are responsible for the organisational high performance over the wider consumer market.
With regards to this concern, the consequences of the expectancy theory of motivation can be undertaken. The theoretical understanding defines that human behaviour usually results from different conscious choices among a set of alternatives where the main purpose reflects maximising pleasure along with minimising relational pain (Lloyd and Mertens, 2018). The theory also reflected the dependency of employee performance based on their knowledge and experience along with abilities. Both the operational consequences of Microsoft and Google has highlighted the deliberate focus of the organisational management upon the maximisation of pleasure for their employees that have been positively implicated with their financial growth. The aspects of employee performance in both organisations are also positively influenced by the experience of total rewards schemes (Barba-Sánchez and Atienza-Sahuquillo, 2017). It usually increased the employee motivation and dedication level on behalf of the core organisational business values and objectives.
From the overall real business evidence and theoretical interpretations, the positive outcomes of the total rewards schemes can be measured. However, a transverse relationship can also be signified in this case where both the employee as well as organisational performance growth can be conceptualised through the enhancement of employee motivation under the shape of total reward schemes (Kaur and Sharma, 2019).
Managing reward schemes in an organisation can be a particular benefit as discussed above however there are certain challenges that organisations face from time to time in implementing these reward schemes. It has been seen that during the design phase of the reward system organisations especially the management do not receive the contribution of the employees for whom these awards are being designed that for the managers as well as leaders are not quite sure what awards should be provided in the first place (Friedrich et al. 2020). Contribution and collaboration from the employees play a major role in determining what kind of rewards would be suitable for a particular organisation and its human resources. Are the major issues that can arise due to a lack of employer contribution in designing reward systems is that companies might end up providing rewards that might not be appreciated by employees. In such cases, the entire idea of rewarding employees for their exceptional work reduces the overall value of the rewards.
Apart from that, another challenge that organisations face from time to time is the misalignment of the year awards with the organisational strategy. This again reduces the overall value of the rewards and employees after receiving the rewards might not feel rewarded which is the true idea of the reward system (Saeed et al. 2019). Therefore, all the benefits that have been discussed above might not be achieved by developing a reward system that does not address the organisation’s strategy.
The challenge that has been identified regarding the total rewards system is that companies and up focus a lot of benchmarking over the performance and productivity of the employees. For instance, setting standards of productivity and achievements based on which rewards are given after much more focus rather than the affordability of the reward systems (Rubery et al. 2018). For instance, if the benchmarking is significantly lower in standard, then a much larger number of employees would and receiving the rewards and this can lead to financial issues for the company as the rewarding of a large number of employees might become unaffordable. in such cases, organisations can end up totally disrupting and stopping reward systems which would again lead to demotivated employees.
Another significant issue that organisations also face by establishing a total reward system within the organisation is the fact that employees get used to rewarding there is a way for performance and without the presence of these rewards, employees might not be willing to work (Kryscynski et al. 2021). It is essential for the organisations to understand the affordability of the reward programs and how far they can be supported by the company, especially during financial crises such as the one that occurred during the covid-19 pandemic.
In many cases where rewards are given as a form of recognition are of a note personalized and rather the recognition is given to the employees as for the perspective of the management and the leaders (Tao et al. 2019). In such cases recognising an employee for their exceptional performance might not end up motivating them or encouraging them to perform better as from their perspective the reward and recognition have not been personalized according to their wishes. For instance, many organisations have rewards such as the Best Employee Of The Year Award. However, the individual who receives this reward might have wanted to be regarded as the Best Team Leader of The Year Award (Taba, 2018). Therefore, the lack of personalization in the recognition rewards can have little to no effect on the motivation levels and morale of the employees who are being rewarded by the company.
Conclusion
The above discussion explicitly sheds light on total rewards schemes and the entire idea of reward schemes in terms of improving human resource performance in an organisation. In this regard, it has been identified that salaries incentive bonuses recognition rewards play a major role. Apart from that the impact reward schemes have over the employees and their performance in the organisation has also been discussed and it has been seen that in most cases it tends to elevate the productivity and job satisfaction of employees. However, the study also sheds light on the various challenges that organisations might face from time to time in establishing a proper total reward scheme in a company. These challenges that have been identified can occur in different circumstances for instance the lack of satisfaction among employees linked with the reward they are receiving can marginalise the overall value of the reward system.
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