Brief Overview of the Company

HRM 533
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HRM 533
1 Create a brief overview of the company requirements for a total rewards system.
Having right talents at the right time, cost, when and where you need it is a challenge for any international organization expanding and operating in uncertain international economy. That is why it is important for organizations to consider total reward program consistently to deliver the work for values. Total reward program help organizations to attract, retain and involve the required combination of talent around its offices in the world. Total reward refers to all tools at hand an employer may use to attract, motivate and maintain employees. The program involves anything an organization perceives important resulting from the employment relationship. A blended reward system for employees such as a blend of non-monetary rewards with monetary rewards program offers the best result in an organization.
A company with over 20,000 employees in over 17 countries in the world offering insurance services requires stable organizational culture and programs to implement and achieve its main objectives. The company has to consider employees total reward program since they are the main asset for the organization. Developing and implementing a skillful organizational wide motivation plan for employees based on corporate performance affects the output of each employee. Investment in organizational reward program for a company will keep employees long in the organization due to better services offered by the company. When companies maintain a clean record of total reward program for employees, it restricts poaching of staff members by other organizations and employees from leaving the organization CITATION Arm13 \l 1033 (Armstrong, 2013).
Implementing a total reward program requires an organization management team to challenge a board range of questions from the designing of the system, types of rewards to offer, funding of the program and the conditions under which the program will operate. Increasing the return on investment of rewards is the company is main goal. Many organizations in the global with good rewarding programs for their employees expect productivity and economic growth from their investments.
Designing a total reward program
The key ways of developing a reward program includes the following:
* Identification of an organization or a company’s goals that the reward program is supporting.
* Identifying the desired employee performance and behaviors based on the group or organization’s previous achievements.
* Determining the key measurements on performance or actions centered on the group or individual’s previous achievements.
* Appropriate determination of rewards for the employees.
* Communication of the program to the employees.
2 Formulate a total rewards strategy to encompass the fundamentals of compensation and the regulatory environments.
For the organization to achieve and reap the benefits such as high productivity, the reward program designer must be able to identify the organization goals to achieve and the necessary behaviors and performance that will contribute to the achievement. While this might seem a piece of cake to many entrepreneurs, organizations frequently make mistakes of rewarding employees achievements that always fail to improve the current business goals. This has resulted to failed reward programs and decrease in company revenues after a success reward program. For example, if the company is main goal is teamwork, developing a bonus system for individual staff who improve their production by themselves does not make sense for the reward program. likewise, if the organization his important issue is quality, a company designing a rewarding system that emphasizes on rewarding quantity of work completed by a business unit will not add up to the organization mission.
The organization must properly measure business performance according to the organization’s goals for the programs to pay off. Rewards program have costs and consume time, therefore businesses more so the small business need confirm the reward program its implantation and that performance as actually improved frequently to avoid making losses. To determine whether there is improvement, the company should measure the total financial returns, more rapid deliveries, reduced defects, happier customers and more other measures. When developing a reward program, the developers of the program must match the program to the organization’s results. It is important to consider a reward program that rewards both groups and individuals accomplishments, this will promote individual initiatives and group teamwork and performance CITATION Dai15 \l 1033 (Daidj, 2015).
Reward programs in an organization require clear spelling out of all needs to employees. This improves the chances of successfully implementing the programmed reward program. Employee motivation from the organization and improved communication between the staff members and the management team ensures staffs are at abreast with changes in the system.
Types of Rewards Programs
There are many different types of reward programs aiming individual’s employees and team performance in an organization. Some of the commonly used types of reward include:
* Variable pay: pay-for-performance or variable pay is a compensation program that considers a portion of each person his pay as at risk. This pay is tied to the performance of an individual’s accomplishment, to the results of a business unit, the company or to any combination of the above. It also can take other forms such as stock options, one time rewards for accomplishment of certain activities and bonus programs. Some organizations have low payment schemes for their employees than other competitors in the industry but still attempt to keep their employees by offering better motivation and rewarding program with the use of variable pay.
* Bonuses: most organizations in the world offer bonuses program for their employees. The bonuses program is important for the insurance company, the program rewards individuals accomplishment and is normally used in sales companies. It is encouraging to salespeople as for every extra sales they make they get to earn a bonuses on each. It motivates employees and pushes individuals to work to their limit. Organizations also reward bonuses to groups for their performance, departmental, companywide levels and corporate level groups. Bonuses have a disadvantage of being short-term motivators; therefore, for small business with interests in long-term benefits it is advisable to consider another reward. Rewarding employees for their best performance in the previous year encourages them to develop a short-term perspective rather than a long-term oriented structure. Most companies argue about the implantation of bonuses as being a bad idea to developing companies, however, the reward system as worked perfectly for the big organizations and is used to encourage top-level efforts CITATION Arm13 \l 1033 (Armstrong, 2013).
* Profit sharing: this refers to a strategy used in creating an account for money, which is disbursed to staff workers by choosing a certain company’s profit as stated. Employees receive an amount equal to their salary’s percentage at the end of every financial year after the company has closed its financial books. Organizations offer these benefits either by cash or contributions to employeesâ...