Rewards

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Describe each of the top five (5) advantages of a total rewards approach.

Total rewards should embrace everything that today’s employee values in the employment relationship. Because total rewards are made up of all the tools that attract, motivate and retain employees, employers need to develop an effective strategy that works with its organizational demographics. (WorldatWork, 2007, pg. 4) There are five (5) advantages of a total rewards approach: Increase Flexibility, Improved Recruitment and Retention, Reduced Labor Cost/Cost of Turnover, Heightened Visibility in a Tight Labor Market, and Enhanced Profitability. Increased flexibility total rewards approach “combines transactional and relational awards to be mixed and remixed to meet the different emotional and motivational needs of employees (WorldatWork, 2007, pg. 15).” Workplace flexibility is a way to define how, when and where work gets done and how careers are organized. It is essential that flexibility work for both the employer and the employees, to be effective. Recruiting and retaining talent is an important priority for best-practice companies. Best practice companies understand the importance of attracting and retaining top talent because of the belief that “getting the right people on the bus” is likely to lead to better employee performance and long-term business success (http://www.totalhrmanagement.com/hr-as-a-strategic-business-partner). Improving recruitment and retention is important to address because of the issues with cost and turnover that revolves around this process. Employees feel committed to the organization when companies help them balance their work and personal life. It has been proven that employees look at the total rewards package when deciding if they want to become permanent with the organization. Recruitment and retention helps to create a work…...

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