- Search Jobs
- Employer Directory
- Career Center
- My Tools
- Other GN Sites
The total rewards strategy’s aim is to offer value proposition. It enlarges the combined effect of a wide range of reward initiatives offered to employees. It promotes employee commitment and reinforces motivation to boost job engagement. It is a holistic approach aimed at creating employer brand value to attract and retain employees.
Base salary, performance-contingent pay and bonuses are treated as fundamental compensation. They are primarily cash payouts to satisfy employees’ income needs. Benefits such as medical, car, insurance, educational assistance and pension/gratuity are created to satisfy employees’ protection needs. Some are statutory benefits, but benefits should not be performance based.
In addition to total remuneration (transactional reward), there is something unique in each organization. Your work experiences cannot be copied by another organization. These are the relational rewards that strongly bind employees to the organization because they satisfy an individual’s needs such as recognition, responsibility, meaningful work, autonomy, opportunity to use and develop skills, career development, quality of working life and work-life balance, thus creating an employer brand embraced by all.
Leaders must play a vital role in implementing a total rewards system and create inspiration and values to achieve high performance. The most successful companies have a clear vision and set of values embedded with good behavior and employee engagement. Employees feel a sense of belonging, embrace HR practices and are proud to work with the firm. Risk sharing, innovation, creativity and recognition are built to create a unique value proposition not measured by cash. Organizational growth is witnessed through the use of the relational reward approach.
Effective performance management (PM) is a powerful means of providing total rewards. And constructive feedback is always highly motivational than your PM system working through the computer.
• Total rewards system aims to boost employee performance
• It is aligned with the business strategy and employee needs
• Big companies use this to satisfy and engage the best people
Source: Dr. Pon Mohaideen Pitchai, Special to Jobs & Careers
The writer is a Dubai-based HR and Management Consultant