Special Topics on Human Resource

Management Online Lecture

l Rewards Management

Total Rewards

According to Josh Bersin, total rewards is the critical integration of an

organization’s approach to incenting and rewarding its talent. Meaning, it’s the integrated
system through which you reward and incentivize performance. It also defined as a model
that consists of dynamic relationship between employers and employees.

Total Rewards Management

Total reward management deals with the formulation and implementation of

strategies and policies that aim to reward people equitable and fairly, consistently in
accordance with their performance and value to the organization. Reward management
consists of analyzing and controlling employee remuneration, compensation and all of the
other benefits for the employees.

Special Topics on Human Resource

Management Online Lecture
l Rewards Management

Objectives of Total Rewards Management

The basic objectives of appropriate and sound compensation and reward system in any organizatio
given here:

1. It aims to develop skills and personality of employees by which they can earn better and attractive
compensation;
2. It aims to pay fair and justify remuneration on the basis of their efforts, skills and competencies;
3. To obtain able and efficient employees and retain high performing employees;
4. It aims to improve the quality of services as rendered by employees;
5. To communicate the employees for their worthwhile and needful role in organization;
6. It aims to increase the level of efficiency and productivity of employees on the basis of motivational grou
7. It aims to develop and enhance cooperation and collaboration among employees;
8. It aims to motivate employees towards higher work performance;
9. It aims to make better employer employee relations;
10. It aims to provide employees social recognition and status;
11. It aims to reinforce desirable and applicable employee behavior.

Special Topics on Human Resource

Management Online Lecture
l Rewards Management

Classification of rewards:

Monetary or financial category

1. Direct
2. Indirect

Non-monetary or non-financial
financial category

1. Preferred work and service conditions,

2. job enlargement,
3. promotions,
4. rights and responsibilities,
5. opportunities for advancement,
6. recognition,
7. health and maternity leave,
8. gratuity and medical leave etc.
Special Topics on Human Resource
Management Online Lecture
l Rewards Management

Determinants of Total Rewards Management

Internal determinants
1. Nature of Work
2. Compensation Policy
3. Employee’s Relative Worth
4. Promotional Policy
5. Technical Knowledge
6. Employer’s Ability to Pay

External determinants
1. Area Wage Rates 5. Competition
2. Economic Conditions 6. Role of Employees’ Organization
3. Scope of Products’ Market 7. Labor Market Conditions
4. Government’s Laws and Policies

Special Topics on Human Resource

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l Rewards Management

Model and Composition of Total Rewards Management

Figure 1. Total Rewards Model

Source: worldatwork.org/total-rewards-model/
worldatwork.org/total

Special Topics on Human Resource

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l Rewards Management

Total Rewards Strategy

Total Rewards Strategy
Definition
Compensation:

 Base Pay Wage and salaries

 Merit Pay Base-pay

pay increase based on employee performance

 Incentives Cash bouses based on employee performance

Based-pay
pay increase based on potential to perform new
 Promotions
job

 Pay increases Based-pay

pay increase based on length of services

Special Topics on Human Resource

Management Online Lecture
l Rewards Management

Total Rewards Strategy

Total Rewards Strategy
Definition
Benefits:

Payment for injuries and illnesses both on and off the

 Health and welfare
job.

 Paid time off Payment for vacation time or excused days from work.

Payment for work no longer performed based on length

 Retirement
of employment

Personal Growth

 Training Skills development through on or off-the-job

off instruction

 Career Development On-the-job

job coaching to develop skills

 Performance Management On going goal setting and feedback to develop skills

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