Total Rewards Systems
Total Rewards System
Walter Clay
University of Phoenix
MGM 570 Employee Motivation and Compensation
Mr. Foy Wallace
13 November 2006 Introduction Motivating the individuals that work for you is one of the most important functions that you will have as a manager. (People Skills, 2006) Simply stated getting employees to do the things they were hired to do is probably the biggest challenge a manager will face. You will always have individuals who will work their hardest for the rewards the company provides them. On the other end there are some employees that you can never keep happy not matter what rewards you give them. In this paper, I will discuss the concept of total rewards using the five elements total reward system. I will also discuss the impact of rewards systems on the organizational performance of companies in the Information Technology (IT) industry. Then I will look at the importance of direct financial rewards in comparison to other elements of the total rewards system for the IT industry. Lastly, I will look at the compensation and motivation practices, which are of particular importance in the IT industry.
Total Rewards Concept The total rewards system concept is simply about the financial and non-financial benefits given to employees in trade for their services to the company. The employees will give the company their time, their abilities and efforts to support the company in return for the benefits the company provides. Total rewards involve the combination of five essential elements needed to motivate, attract and retain employees needed to accomplish the organizations goals. They are:
Employee Compensation
Employee Benefits
Employee Work-life Balance
Employee Performance and Recognition
Employee Development and Career Opportunities
Total rewards is the approach of using the five items to develop an employee benefit package designed to achieve optimal employee motivation. The key to the
Walter Clay
University of Phoenix
MGM 570 Employee Motivation and Compensation
Mr. Foy Wallace
13 November 2006 Introduction Motivating the individuals that work for you is one of the most important functions that you will have as a manager. (People Skills, 2006) Simply stated getting employees to do the things they were hired to do is probably the biggest challenge a manager will face. You will always have individuals who will work their hardest for the rewards the company provides them. On the other end there are some employees that you can never keep happy not matter what rewards you give them. In this paper, I will discuss the concept of total rewards using the five elements total reward system. I will also discuss the impact of rewards systems on the organizational performance of companies in the Information Technology (IT) industry. Then I will look at the importance of direct financial rewards in comparison to other elements of the total rewards system for the IT industry. Lastly, I will look at the compensation and motivation practices, which are of particular importance in the IT industry.
Total Rewards Concept The total rewards system concept is simply about the financial and non-financial benefits given to employees in trade for their services to the company. The employees will give the company their time, their abilities and efforts to support the company in return for the benefits the company provides. Total rewards involve the combination of five essential elements needed to motivate, attract and retain employees needed to accomplish the organizations goals. They are:
Employee Compensation
Employee Benefits
Employee Work-life Balance
Employee Performance and Recognition
Employee Development and Career Opportunities
Total rewards is the approach of using the five items to develop an employee benefit package designed to achieve optimal employee motivation. The key to the
References: Ewalt, David M. (March 19, 2001) IT Workers Look At the Union Label – Dissatisfied Dot-Com Workers Look to Labor Organizers to Blunt Effects Of Retrieved November 11, 2006, from Academic OneFile via Thomson Gale: Deeprose, D FUTURE STRATEGY: Rewards for recovered items. (Jan 12, 2006) In Employee Benefits, pNA (Column). In National Petroleum News, 83, p64(1). Retrieved November 11, 2006, from InfoTrac OneFile via Thomson Gale: Hudy, John J. (Dec 1992) The motivation trap. (Motivational orientation in management)(includes related article) (Employee Morale) 37, p63 (4). Retrieved November 11, 2006, from InfoTrac OneFile via Thomson Gale: Retrieved November 11, 2006, from InfoTrac OneFile via Thomson Gale: