Human Resources Proposal the Total Reward Model Research Proposal

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Human Resources Proposal

The Total Reward Model: A New Paradigm in Employee Motivation in Technical Fields

Research in employee motivation has focused on which methods result in the most effective means to stimulate employee motivation. Until this point, the body of research has focused on the study of single methods and their effectiveness on employee motivation. For instance, research has focused on pay, benefits, job satisfaction, and employee review as a means to motivate employees. This research approach led to the conclusion that different types and methods of employee motivation led to different results, depending on the personality and individual traits of the employee's personality. Now, a new paradigm has entered into the field of employee motivation. This approach is the total rewards approach. This research will explore total rewards in terms of its effectiveness in motivating employees and improving company performance.

Increasing demand for high quality employees has been problematic in technical fields for quite some time. The number of potential candidates for these types of positions has increased. However, competition for skilled employees can be brutal and good candidates can be easily attracted away. In highly technical fields, trained and skilled employees are one of the most valuable assets the company can have.

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This is particularly true in areas that involve research and development. Finding ways to attract and retain highly desirable technical employees is one of the key challenges that Human Resources departments face. This research will explore which elements of the total rewards program would be of most benefit to human resources departments in developing their staff and in keeping their most valuable assets.

Problem Statement

TOPIC: Research Proposal on Human Resources Proposal the Total Reward Model: Assignment

This research will examine the total reward model of employee motivation. It will explore various methods of implementation and will explore the effectiveness of applications of this model. It will examine the problem of whether the total reward model of employee motivation is superior to other methods that have preceded it. This study will concentrate on technically oriented fields in the computer industry, as this is a highly competitive area of the workforce and will continue to be in the future. Retaining high quality technical employees will be a key element of success in technically oriented fields.

Related Research/Literature Review

Success in technical fields depends on the ability to attract, motivate, and retain high quality employees. Human capital is now considered one of the most important factors in the ability to maintain profitability. In order to increase productivity, resulting in a successful of enterprise, the rewards packages offered were often the same. The premise was that if the employee provided something to the company then the company would provide something of value to the employee. The problem was finding the right set of rewards that would be effective in motivating the employee.

In order to understand how the total rewards model developed, it is important to understand the processed used by organizations to design their compensation packages. Prior to the 1970s, salary structures were rigid controlled by management. During this time benefits packages used a homogeneous compensation packages that were presented to what was considered a homogeneous workforce (, 2006). This resulted in a workforce where of some were motivated by the package offered, but others that were not, encouraging them to go elsewhere for a company that offered a better package. This was not an effective means to motivate or retain valuable employees.

During the 1970s and 1980s organizations began to realize that benefits and compensation packages were a part of the business strategy that would give them an edge in their ability to attract the best employees and managerial staff. The strategically designed compensation packages were in response to the development and emergence of multinational corporations, competition in the business environment, and a diversified workforce that did not fit into stereotypical household models of the 1950s and 1960s (, 2006). These changes were also a result of rapidly rising benefits costs and new government regulations and mandates in regards to employee benefits. The most important effect of these changes is that employee benefits became a part of the overall strategy of the organization, rather than something which was given little thought.

These changes caused professionals to seek more efficient ways to improve employee attraction, retention, and motivation. The results of these changes produce the emergence of human resources specialists who concentrated on developing compensation and benefits packages for the company that would meet their financial goals, as well as their attraction and retention goals for maintaining a high quality workforce. This developed into a new way of thinking about compensation and benefits. The concepts of tangible and intangible benefits began to emerge, as well as flexibility in benefit packages (, 2006). The total rewards model developed out of the concept that benefits were a part of the competitive and strategic advantage of the workforce.

The total rewards model concentrates on three primary elements. These are compensation, benefits, and the work experience. The total rewards model includes the need for acknowledgement, balance in work and family life, culture, career development, and the environment of the workplace. The purpose of the total rewards model is to produce an employee who is satisfied and engaged in the work experience. This produces a business the enjoys improved performance and results that are measurable in terms of growth (, 2006). The principles of compensation, benefits, work/life balance, performance recognition, and development in career opportunities are the five core areas of concentration in the total rewards model. Leveraging these five areas is the key to a successful total rewards program.

Using the total rewards model the employer provides total rewards that are valued by employees and the employee in turn provides commitment, talent and effort that ensures the success for the company (, 2006). Total rewards programs include both monetary and nonmonetary means to motivate employees. Now let us examine the five areas of the total rewards model more closely.

Compensation is the first area of the total rewards system. In order to understand compensation, one must examine the different types of compensation data are currently being used by human resources professionals. Fixed pay of is known as "base pay." This type of pay is compensation that does not vary due to performance or the results of an employee's work. This can vary in different organizations. Variable pay is another type of compensation that changes directly in accordance with the level of performance. This type of pay is a direct result of the employee's work. Often, benefit packages require that the employee must re-earn this one-time pay every work period. Short-term incentive pay focuses on performance over a period of one year or less. Long-term incentive pay is designed to focus on a period of longer than one year and often includes incentives such as stock options, restricted stock, or the performance-based benefits and cash (, 2006).

Compensation also includes various benefits such as social insurance, including unemployment, workers' compensation, social security, and occupational disability. Other benefits can include group insurance, and pay for time not worked such as holidays, and vacations. Compensation is often included as part of the pay and benefits program. These are often homogeneous and everyone has a chance at the same benefits structure. However, some companies offer employees various choices based on tenure or level of employment.

The second category of the total rewards program is work/life balance. These include activities that directly support efforts to help employees achieve success at both work and home. The some of these benefits include workplace flexibility, additional paid and unpaid time off, and caring for dependents. Community involvement is another element of the program, as is managerial intervention for cultural change within the organization to create a more positive work environment. Some companies go as far as including day care or benefits for parents who must use child care in order to continue to work. Some of the most innovative programs involve onsite day care that allows mothers to have some form of direct care involved with their children as they progress through the work day.

The third area of the total rewards program is performance and recognition. The backbone of the system is performance planning where the expectations are established that link individuals with team and organizational goals. Performance refers to the actual performance of the skill or organizational goal by the employee. Performance feedback refers how managers communicate the results of performance back to the employee. This can include employee reviews and suggestions as to how the employee can improve their performance in the future. Recognition is the program whereby an employee is recognized for their actions and performance. It reinforces the value of continued improvement and provides positive feedback. It makes them feel as if they are a valuable member of the team.

The fourth area of the total rewards program is development and career opportunities. Employees must be able to the advance and develop a sense of personal goals within the organization. Programs that fall under this category… [END OF PREVIEW] . . . READ MORE

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