The Total Reward Strategy (TRS) in an organization
What is TRS in HRM
The total reward is the combination of benefits, compensation, and rewards that employees receive from their organization. This may include wages and bonuses, as well as recognition, workplace flexibility and career opportunities in a motivated working environment. Rewards are inducements which are aimed at motivating the workers and encourage them to work harder. According to Tahira (2012).
How to Implement TRS
Implementing new TRS is a comprehensive task that involves research and consultation with multiple internal teams. It offers a more dynamic and culture-wide way of understanding the relationships at play in a workplace and it gives employers a fuller toolkit to work with them and to identify when it’s time to fine tune total reward strategies. When organizations structure the “reward systems” entirely according to the intent of their employees, it happens to human instinct to work hard in order to achieve their own and organizational objectives (Pfau and Kay, 2002).
Figure 01: TRS; Source: Worldatwork
Benefits of total reward strategy
Employers who take total reward approach enjoy a number of benefits, including:
Persuasive recruitment tool - Once employers have quantified the value of their total reward plan, they can use it as a way to demonstrate the value of the organization's benefit plan when talking to potential candidates
Raise awareness of all employer benefits - The Comprehensive Incentive Program helps employers communicate all
benefits and allowances
available to employees.
Higher employee retention rate - Allows employers to quantify the value of each individual benefit or benefit, and the total amount the employer spends on these rewards. When employees see how much their employer has invested in them in addition to their salary, it can be an incredibly positive experience and will increase employee morale and engagement.
Improved performance and productivity - Employees who are more engaged are not only loyal employees but also more productive. The total reward plan is related to the improvement of performance and overall employee satisfaction.
Conclusion
The concept of comprehensive reward strategy is an indispensable tool for modern human resource professionals. This is because this approach takes a more comprehensive and realistic view of the value of employees in the organization. Implementing a comprehensive reward strategy requires careful planning and preparation. Once the employer has successfully switched to a comprehensive reward strategy. This approach will lay a solid foundation for establishing a strong relationship between organizational performance and employee satisfaction.
Reference:
Pfau BN, Kay IT (2002). The five key elements of a total reward and accountability orientation. Ben. Q. 3rd Q., 18(3): 7-15.
Researchgate: Literature review on total rewards: An international perspective [Online]
Available at: https://www.researchgate.net/publication/273989111_Literature_review_on_total_rewards_An_international_perspective
[Accessed on 10.08.2021]
Academicjournals: Total Reward Strategy [Online]
Available at: https://academicjournals.org/journal/AJBM/article-full-text-pdf/E53107D28272
[Accessed on 10.08.2021]
Agreed Jackson, as you correctly mentioned A total rewards strategy is a system implemented by a business that provides monetary, beneficial and developmental rewards to employees who achieve specific business goals. The strategy combines compensation and benefits with personal growth opportunities inside a motivated work environment.
ReplyDeleteThank you for your valuable comments Oshadha.
DeleteTotal Rewards strategy is to optimize employees’ experience and satisfaction with everything employees receive as a remuneration for their work. Total rewards strategy is involves designing and implementing reward policies and practices support organisation’s objectives, delivering a motivated and effective workforce.
ReplyDeleteJackson you have explained the TRS perfectly. The implementation of a total reward strategy by providing monetary rewards, benefits, and development to employees in a company is very important because it can encourage employees to work more productively and build a strong relationship between organizational performance and employee satisfaction
ReplyDeleteThank you for your valuable commenta Pradeep.
DeleteThe reward strategy is an important step in creating a reward system for retaining high-level employees and encouraging entire staff to work efficiently. Also it help to establish mechanism that help recruit, engage and develop staff to perform and deliver to the best of their ability and thus make the organization successful. Within the today's competitive environment, it is very important to have effective strategy for rewarding the full use of financial and non-financial resources as competitors are looking for opportunities to hunt high-level employees at all times.
ReplyDeleteThank you for your valuable comments Rukmali.
DeleteThe world of business is changing faster than ever. The most critical challenge facing HR professionals today is attracting, motivating, and retaining talent in emerging economies. Many organizations use ‘Total Rewards' to combat talent loss. Total Rewards is a concept that has evolved over time. Total Rewards is a bouquet of compensation, employee benefits, work-life balance, career development, and performance and recognition. Several studies show that an effective ‘Total Rewards Strategy (TRS)' improves employee engagement and improves business performance.
ReplyDeleteThank you for your valuable comments Kanchana.
DeleteTimely discussion Jackson, your article is well-written and has sufficient information. Employers typically compensate employees in a variety of ways, including monetary perks, pay commissions, and incentives. Wages and bonuses, as well as recognition, workplace flexibility, and career prospects, are all examples. Thank you for sharing a great topic.
ReplyDelete