Describe each of the top five (5) advantages of a total rewards approach.
Total rewards is the combination of five key elements, compensation, benefits, work-life, performance and recognition and development and career opportunities, to motivate, attract and retain talent internally and externally. Total rewards can be both a monetary or nonmonetary return to assists businesses in their need to manage costs and growth in addition to meeting the needs of their employees. There are five advantages of a total rewards approach:
1. Increased flexibility in the total rewards approach allows awards to be mixed to fit the various needs of the employee. Flexibility has become an important factor in work-life balance. Organizations are recognizing the constraints many workers are facing and providing them with alternatives to ensure the motivational and emotional needs of the employees are met. Some flexibility rewards that have been implemented in many organizations are instilling various scheduling options and providing telecommuting options. More companies are instituting new work schedules which include longer days but shorter weeks, i.e. 4 days @ 10 hours as well as allowing employees to work from home. With technology becoming more advanced, employers can meet with employees via the web and documents can be faxed or emailed. Increased flexibility is both beneficial to the employer and the employee.
2. Improved recruitment and retention in the total rewards approach identifies ways to retain internal employees and recruit external talent in key positions. Employers are faced with developing a total rewards package that focuses on work and personal life. According to the textbook, employees feel a stronger commitment to an organization that assists them in managing the major part of their lives, work life and personal life. A total rewards package aids employers in achieving a competitive advantage when recruiting new talent. External candidates are looking...