Total Rewards

Running Head: Total Rewards
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Introduction
Total reward just like any other modern management strategy, has been used in businesses by both researchers and administrators. As a human resource approach, total reward requires persistent evaluation and practice to enhance its effectiveness in the field. The compensation cost has been posing a great challenge to both the private and public sectors due to the rapid changes taking place in the world in the financial and business sectors. This has caused a lot of problems which have influenced the performance of many companies.Workers no longer put more emphasis on the cash reward as they used to do in the past. This is in response to the survey conducted by Nelson Motivation, Inc., San Diego, California which revealed that cash reward was ranked number fifteen out of less than twenty motivators used in the survey. Motivators like supple working hours, educational activity, improved power and close interaction with managers among others were ranked high. (Zhou J., 2009).
A number of reward-related strategies are coming up as a result of change in modern market financial matters such costs management, payment administration, salary management, and reward administration. All these strategies are meant to attract, retain and improve the performance of employees. New-fashioned reward administration is formed on the ground of administering changes in the management, the approach does not only consider the contribution of members to the improved performance of a company but instead it`s a definite action design of company`s strategic aim and principles attitude change. New-fashioned rewards management incorporates indirect income and non- monetary compensation apart from the material and cash compensation .Total reward strategy is the mode used in modern reward management system since it goes with all the work morals and quest of the modern workers and it is a vital indication of better link between gratification of compensation values and performance. (Zhou J., 2009).
In the article Employees Benefit News, Doug Thomas, who is the Northeast region manager for the payment and rewards program at SMART, a Devon, Pa-based consulting firm, confirms that assisting workers in developing their careers helps in improving their shared loyalty, and this is a unique feature in companies that are committed total reward and will later be a basis for the company`s traditions. He continues to argue that workers are now have shown improvement in companies where these programs have been implemented and calls companies to ensure that they give their employees these rewards otherwise it will only be seen as a slogan. Total reward strategy has changed the old approach where workers used to communicate their own individual and career growth. Currently, employers chart to their employees the total package they will receive from the organization in order to retain and improve the performance of their employees. In the same article McMullen urges companies to concentrate on internal requirements instead of blindly following the market trend, the companies should develop their own definition of total reward, employ it always and ensure that all employees within the organization know the various kinds of total reward. (EmployeeBenefit News 2010).
Discussion
Comparing and contrasting total rewards programs to more traditional approaches to compensation and benefits
The convectional strategy to reward program is to provide basic salary and some other benefits depending on what meets the agreement. An individual usually receive these benefits after attaining a higher position, or after showing a greater improvement in his/her performance and at times after negotiating with the employer. Total reward on the other hand looks beyond the basic salary instead it looks at overall remuneration benefits offered, which includes both the direct and the indirect payments. (Harris, L. 1999).
Discuss the advantages and disadvantages from the employer's and employee`s perspective of implementing a total rewards program<...