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Total Reward Strategy
Total Rewards Strategy
Team D
HRM/600
July 27, 2014
Professor Carlos Jon
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Total Reward Strategy
Total Rewards Strategy
The Success of Motors and More Inc. is largely attributed to our dedicated employees, which is
attributed to the Total Rewards Strategy currently used to entice our workers. According to World at
Work Organization, total rewards refers to, “all of the tools available to the employer that may be used to
attract, motivate and retain employees.” These rewards entail all the factors that an employee would
perceive to be generating value from the work that they offer to the firm.
We have adopted a Total Rewards Strategy that ensures the best workers are attracted and
rewarded fairly. The Total Rewards Strategy that our company uses is comprised of five elements,
including; compensation, benefits, performance and recognition, work life and career, and development
opportunities. These elements provide organizational tools to generate value from our employees. Our
Human Resources Department understands the importance of implementation of The Total Rewards
Strategy and desires to ensure our employees are productive, which in turn benefits our organization.
Additionally, this also complements our strategic mission and business plan.
Compensation Strategy
The Total Rewards Strategy used by our organization is quite important considering the fact that it
helps to retain the workers that ensure the company is a success. For example, in relation to compensation
workers are paid for the services that they offer. In addition to paying our workers, another
important factor that we keep in mind is to consider the efforts that individual workers bring to
the firm. Therefore, the company employs different compensation strategies e.g. base pay,
variable pay etc.
According to World at Work Organization, compensation refers to the “pay provided by an employer
to an employee for services rendered”. Our employees deserve to be rewarded according to their
performance, which is driven by their skills, talent, and productivity. The key to retaining the “most
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Total Reward Strategy
talented” workers in any successful organization is pay for performance and a strong compensation
package. The core compensation elements for our workers are;

Base pay

Variable pay

Short term pay

Long term pay

Bonus pay

Performance pay

Sales commission

Pay raise/ salary raise
Base Pay
Base pay is also referred to as “fixed pay”. This compensation offered does not differ depending
on the performance of our employees. Just as the name suggests, this is a fixed amount, and is
determined depending on where our employees fall in the hierarchy.
Variable Pay
Variable pay is used to reward our employee’s performance. This is an excellent motivational
tool which has been implemented to strengthen our worker’s performance. In our organization we
normally offer variable pay after a period of one year, five years and ten years. This means that those that
have worked in the firm for more than 5 years will gain more benefits in terms of rewards as compared to
those that have served for a year. Ultimately, those that have served for a year will always yearn to reach
the 5 year or 10 year rewarding point. The organization benefits from this by retaining its most valuable
and trusted employees.
Short Term Pay
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Total Reward Strategy
Short term pay also falls under variable pay and employees are rewarded annually according to
their performance. The period may be reduced which is contingent on our organization’s evaluation
period.
Long Term Pay
This type of compensation rewards our employees for their productivity efforts for more than one
year. For example, after ten years of working with our company, our employee’s salary is increased
according to performance and seniority.
Bonus pay
This type of compensation reward is used by the organization to remunerate those that have performed
auspiciously towards profiting the firm. For instance, in the coming year the company is considering to
offer a bonus pay of up to 30% of the employee’s salary. This is basically meant to motivate individual
and the entire working base.
Performance pay
Performance pay is somewhat similar to bonus pay. The only difference that exists is that performance
pay is only offered after workers have been evaluated over a number of years. For example, workers in
our organization are normally evaluated annually and rewards offered to respective workers.
Sales commission
This reward is offered to workers working in the sales department. Those that sell the most are rewarded
for their undying efforts. This benefits the firm in retaining these workers and at the same time motivating
those that did not sell much.
Pay raise/ salary raise
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Total Reward Strategy
It is part of the organization’s Total Rewards Strategy to meet the workers’ deepest and silent wishes.
Every employee would yearn to be rewarded at a certain point in time. Therefore, the organization has set
up a strategy of rewarding employees after 10 years of working with the firm. This entails a salary raise of
up to 35% of the initial salary.
Benefits Strategy
Our organization is also well aware of the fact that humans are prone to sickness and financial
difficulties from time to time. As such, as part of the total rewards strategy, ‘benefits’ comes in to rescue
our employees. For instance, workers normally have health welfare advantages as they can easily access
medical attention by using the company health cards. This is quite beneficial to the organization since
workers feel motivated to work in a company that puts their health welfare as a priority. Productivity and
worker retention capacity is enhanced too.
World at Work Organization defines benefits as “programs an employer uses to supplement the cash
compensation that employees receive.” This type of rewards strategy is simply meant to provide workers
with security in several areas that are sensitive in nature. For example, we offer benefits in welfare,
health and retirement. In terms of welfare and health, the following are the key benefits that are accrued
by our employees:

Dental plan

Medical plan

Insurance on disability

Life insurance
Other types of benefits that are normally received by our employees include:
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Retirement benefits

Payment for absent days
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Total Reward Strategy

Sick leave

Holiday

Vacation
Our benefit package is designed to retain and motivate our workers, and to provide them with a
competitive benefit package. This strategy will ensure our workers are not only productive, but properly
compensated for their performance.
Work Life
Work life is structured to ensure a healthy balance between our employees’s working hours and their
home activities. This balance is driven by our support, communication of programs offered, and time-off
when their performance warrants it. Accordingly, our work-life programs is successful, because of the
key strategies we have adopted;

Flexibility in the workplace. This provides workers with flexibility in managing their work
schedule and also setting time aside for outside activities.

Offering time off

Motivating employees to live healthier lifestyles. This helps to increase productivity in our
organization and reduces absenteeism.

Community participation
Performance and Recognition
We have a diverse group of talented employees with varying levels of ability and skills.
Performance and recognition is focused on assessing workers based on their individual efforts and team
efforts, as well. Our company recognizes individual efforts by offering employees with; trophies for
work performance; tickets to sporting events, and award certificates. This recognition and reward strategy
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Total Reward Strategy
ensures that our workers are praised for performance in front of their peers and this helps to drive
performance and productivity in the future.
Career and Development Opportunities
Without doubt, employees have their own career goals they desire to achieve. We help our
workers to advance in their career fields and later to apply for positions of increased responsibility. These
in-house promotions brings more value to the table, encourages our workers career focus, which in turn
benefits our workforce. Our company strives to support and implement career and development
opportunities, in order for our employees to gain new skills, stay abreast of current technology, and to
continuously developing their professional skills. The fact that our workers are spending their time to
make the company successful means increased productivity, morale, and retention.
Certainly, there are rivals in the industry that we are operating in. it is therefore the company’s goal to
communicate constantly with the employees. It is through communication that we as an organization
understand the needs and demands of the workers. If these demands are feasible then the firm strives to
provide them through the rewards strategy that is being used. Take for example a worker yearning for
commission through the monthly sales that he/she has made. Through the sales commission compensation
scheme such workers would have their demands fulfilled in one way or another. The same thing applies to
salary raise and other forms of benefits that probably the company has not covered and yet other
companies are offering. All these are meant to retain and motivate workers with the awareness in mind
that there exist a stiff competition in the industry of operation.
Considering the many workers we have in the organization it is worth pointing out that workers should be
rewarded fairly based on their efforts to the firm. It is for this reason that the company performs an
evaluation criteria annually to warrant that performance levels and individual efforts are recognized.
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Total Reward Strategy
References
“Benefits." Benefits. N.p., n.d. Web. 22 July 2014. <http://www.worldatwork.org/waw/home/
“Compensation." Compensation. N.p., n.d. Web. 22 July 2014.
<http://www.worldatwork.org/waw/home/
"What Is Total Rewards?." What is Total Rewards. N.p., n.d. Web. 22 July 2014.
<http://www.worldatwork.org/aboutus/html/aboutus-whatis.jsp>.