Total Rewards System Proposal

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- Compensation – Making sure that the companies pay rate is in the top 3 percent of the pay scale of its competitors. A very competitive merit pay system that will also include achievable bonuses. Maintain equal pay regardless of sex, race, religion, disability, or sexual orientation. Also will include vacation, sick leave, and maternal leave that will give mothers time to bond with their children and not have to borrow time from their co-workers.

- Benefits – Have the top of the line benefits programs that would include dental vision and health care, retirement, financial benefits.

- Work-Life Effectiveness – This category of benefits will include time off to care for dependants that include elderly care. Other programs will include Health promotion initiatives, concierge service, workplace convenience services, fitness center affiliations, on-site work-life seminars, and work from home programs.

- Recognition – Company A will recognize all employees who exceptionally well in the work place by awarding yearly bonuses and monthly Employee of the Month awards.

- Performance Management – Company A will make achievable employee milestones to encourage all employees to move up to higher positions and create better work performance.

- Talent Development – Higher Education will always be encourage to all employees as they continue to work and pursue their higher educational goals.

The more the company is dedicated to taking care of its employees, the more likely it is that the employees will take care of the organization (Ferrell, Fraedrich, and Farrell, 2011, p.18). The total reward system outlined in this plan will create better employee appreciation and commitment to the organization.

Determine the key communication components of the total rewards system.

The best total reward system is no good without effectively communicating its benefits to the employees that it is suppose to serve. If an organization has a philanthropy program that matches your donations that you give to charity, and you know nothing about the program, then it is useless and will not benefit the organization to be known as a philanthropist. There are ways that an organization can communicate all of the benefits programs of its total rewards system so that every prospect and current employee may take advantage of. They are:

- Speak – During employee orientation, employee meetings, newsletters, announcements, and reviews, employees will learn the different programs of the total rewards system.

- Online- Consider creating an online employee portal that details the benefits of the total rewards program and is easily understood. Also adding information about the total rewards program to the hiring page of the company’s website is beneficial.

- Employee handbook – Each employee should receive a handbook that states the guidelines that are required for employment as well as detailed information about all available benefits.

- Exit handbook - This handbook should be given to all retiring employees, or transitioning and relocating employees. This booklet will give details about all available benefits that are relevant to their current situation.

- Upon any changes – If any changes to the total reward programs are made, it is crucial to inform all employees of the changes and how the changes may affect them. Build employee trust and buy-in by honestly outlining the business decisions for the change and how it affects employees (Haskell, 2014 pg.1)

Indicate your strategy for devising a competitive pay structure.

The key to any good total rewards program is having a competitive pay structure. A competitive pay structure is what will attract and allow the organization to retain the best employees. The author of “Devising a Compensation Strategy For Your Company” has broke down how to get it right when determining pay.

- Determine Your Philosophy – Consider the compensation practices of your peers and go from there. You don’t have to necessary pay higher; however, you will know where a good starting point should be. Determine if you will pay signing bonuses or not.

- Find Salary Compensation Data – The U.S. Department of Labor and Bureau of Labor Statistics carry a wealth of data that you can analyze to determine what is fair within your industry.

- Back Up Your Decision – Research, conduct surveys, annually to see if the organization is within the margin of error for compensation.

- Set the Course – Once your compensation has been determine, set the course and began the process for your employees to process through it. Make sure that every employee understands how to progress and receive raises (Feely and Driscoll, 2014). Put it in writing!

Company A Insurance Group finds its primary source of strength in human competencies. The company believes in the rewarding talented and dedicated employees who make the difference on the quality of service delivered within the industry. Company A Insurance Group intends to build its collective success around a relationship in which the needs of itself and of its employees are mutually satisfied.

Reference:

Feeley, and Driscoll. (2014). Devising a Compensation Strategy For Your Company. Retrieved

on August 6, 2015 from

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business Ethics: Ethical Decision Making &

Cases. Mason, OH: Cengage Learning

Haskell, G. (2014). Eleven Tips to Effectively Communicate Your Total Rewards Package.

Retrieved on August 6, 2015 from http://www.trinet.com/blog/2014/05/09/eleven-tips-to-effectively-communicate-your-total-rewards-package/

Hein, P. & Kantor, R. (2012). Is Your Total Rewards Strategy Giving You a Competitive

Advantage? Retrieved on August 6, 2015 from http://www.trinet.com/newsletter/05_12/total_rewards_strategy.htm

Hein, P., Kwon, J (2013). Employee Benefits in a Total Rewards Framework

Benefits Quarterly, 29 (1), 32-38. Retrieved on August 6, 2015 from Business Source

Complete database.

Heathfield, S. (2015). Performance Management- Quick Stop Learning Guide to Performance