Friday, September 13, 2019
Six Features of an Effective Total Rewards Program Essay
Six Features of an Effective Total Rewards Program - Essay Example The best way to gain profits and achieve commercial success is through employee compensation both in cash and kind. The cash benefits include wages and salary, while benefits in kind include fringe benefits and perquisites. The employee rewarding programs are critical to success of the organizations in recent times. Tesco PLC, the British multinational (MNC) grocery and merchandise retailer, is well-known for the compensation plan offered to its sales force (Armstrong & Taylor, 2014). The company provides simple, competitive and sustainable rewards to the staff, which help to build loyalty and trust amongst the employees and ensure their retention. The staff is paid quite high and the amount is around 7% more than three largest food retailers present in the market. Total reward program is a part of the sales force compensation plan. Many companies effectively conduct these programs so as to build loyalty and trust amongst employees. Six features of an effective total rewards program can be described as follows: Strong Compensation structure- The sales force can be motivated through premium and variable pay, besides the base salary. Premium pays can be in the form of on-call, shift differential, call-in, hazard, bi-lingual and skill based pay (Tetrick & Haimann, 2014). Variable pay, on the other hand, can be offered as commission, team based pay, bonus programs and incentive pay. Incentives increase the feeling of self-actualization among employees. Top IT companies such as, IBM, offers employees undifferentiated variable and team based pay, thereby accelerating their level of morale and encouraging them to work for the organizational welfare (Armstrong & Taylor, 2014). Availability of Perquisites Ã¢â¬â These have the capacity to elevate the motivation level of sales force.