How to Design a Total Reward Program – Advantages and Disadvantages
Designing and Implementing total rewards strategies: To maintain best employees and satisfied workforce, Business and Government Enterprises need effective reward systems. Employee rewards are an excellent tool to recognize good performance and make the employee feel valued and appreciated. Total Reward system includes good pay, monetary and other non-monetary incentives. Mostly, the obligation to create a total reward system is lays on human resources managers.
Employee rewards must be fair to all employees and given in appropriate situations. The company policy on employee rewards should be specific and clearly defined. Here are few guidelines to keep in mind while making a total reward system.
Points to be considered while Design a Total Reward Program
- The first step you need to take is to develop competitive pay scale for each stage. Once you decide what should be the pay scale, decision- makers can take decision which positions should be paid at, below or above the average pay rate.
- After that, decide amount of traditional benefits. Traditional benefits include total medical, dental, vision benefits, health and life insurance and annual vacation.
- You also can provide work-life rewards which offer paid or unpaid sick time, paid lunch and break times, childcare assistance, variable work schedules and other benefits.
- You should develop meaningful employee recognition programs. Depending on the profitability of the organization employees are recognized with anything from cash to event tickets to a certificate. It is important that people who are recognized are truly outstanding workers.
- Career development programs are best initiatives. So many employees continue the current jobs just because they can see the possible advancement in future.
- Management training programs are beneficial to employees that it steps ahead towards future career advancement as a valuable reward. It is low cost reward system that keeps employees for long time.
- Always offer training programs to deserve candidates. It can be demoralizing to high-achieving employees, if you offer training to low-achieving employees due to personality, friendships or connections.
- Sometimes, a simple “thank you” can go a long way and plays a vital role.
- Some team reward programs include participation in group activities or training or meeting compliance standards.
- Some companies create wellness programs that motivate employees to make healthier life decisions, change unhealthy eating habits and begin exercising regularly.
- To attract and motivate high performers, companies may implement individual employee reward programs. These types of programs are mainly performed when your business is at risk of losing high performers.
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