CHR
Founder Cite.co
Col
Employee Retention Specialist

Is your company using a total reward approach?
In the UK some of the larger companies have adopted total reward.
I expect more will do so during the next 18 months
Col
colbrown.co.uk

From United Kingdom, London
Hi Col,

Was trying to find out more about the Total reward approach. Found the following material.



Total reward defined

Total rewards embraces everything that employees value in the employment relationship. It integrates a number of classic human resources disciplines and adds some not-so-classic ones.

Sandra O'Neal, Towers Perrin (1998).



More and more, we are all recognising that in order to differentiate our own organisation from others in the jobs market it is necessary to offer more than just a good salary and pension. The past few years have seen an increase in the development of total reward programmes by benefits consultants. In an era of skills shortages, potential recruits and existing employees are becoming more sophisticated in seeking a more congenial work-life balance.



This bulletin summarises the Executive Briefing, Total Reward, which provides a comprehensive introduction to the concept and offers practical tips and real-life case studies. In the current climate - full employment, a shortage of workers with key skills, and a more mobile workforce - employers have to ensure that they stand out from the crowd in order to be seen as the employer of choice. It is clear that each organisation needs a tailor-made system to address its particular needs, and that a 'one size fits all' approach will not succeed. Therefore it is critical for all employers to review and enhance their total reward offerings.



Of course, there is nothing new in asserting the importance of non-financial factors in motivating people. Cash-constrained public and voluntary organisations have for years been forced to come up with creative and broadly based reward packages to attract and retain staff who could earn more money elsewhere. Even blue-chip employers with generous and expensive, but uniform, pay and benefits packages have found that not all, or even most, employees are satisfied.



The trick is to maximise the perceived value of the rewards at an equivalent and acceptable cost to the employer. But, so far, few employers have made the switch from a traditional pay scheme to a total reward system, largely because of the daunting task of making such a wholesale change. The few organisations that have made the change have done so mainly because of outside pressures - for example, to harmonise benefits following a merger or take-over.

Key findings



The organisational benefits that flow from a total reward scheme are:



* easier recruitment of better-quality staff

* reduced wastage from staff turnover

* better business performance

* enhanced reputation as an employer of choice.



Conclusion



The psychological contract between employers and employees requires trust on both sides. The provision of a total reward scheme demonstrates that the employer takes into consideration the needs of the individual employee and is prepared to be flexible in meeting those needs. The employee also feels to some extent in control by being able to select various options from a range of benefits.



The summary of the literature and of approaches to the concept shows that cost and efficiency are also important drivers of the total reward approach. We all want different things from our jobs at different stages in our lives, and we all place different values on what our work and employer provides. At certain times we may be able to concentrate on the luxury of job interest and personal development, while, at others, security and paying the mortgage are paramount. All of these factors are documented, and Total Reward promotes a 'total reward' way of thinking to address these various personnel issues in your organisation.



In our global knowledge- and service-oriented economy, CIPD research clearly demonstrates that people are potentially the most valuable and powerful source of sustained competitive advantage. But in an environment of continuing and widespread skills shortages, increased diversity and changing social values and expectations, people are also the most difficult asset to manage. They walk out of your office door each evening. Voluntary commitment and engagement underpin business success and are at the heart of a total reward approach.



CIPD -Total Reward

From India, Gurgaon
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