Total Rewards Package Strategy 

Total Rewards Package Strategy 

Executive Summary

The FFH is so much concerned with the competitiveness of its total rewards package. Several FFH supervisors and managers have been working with the company for over 20 years and contented with the compensation offered. Now there is a present matter according to the interviewed potential employees suspecting that they are not receiving equal total rewards as contrasted to their competitors. It is essential to examine the existing complete rewards package and try to understand how it relates to the benefits package of the competitor. This paper will explore mechanisms to include in the complete rewards package of the firm, contrast the benefits and salary components by adding incentive compensation, what legal compliance to be considered in establishing total rewards package, and recommending the right strategy for management. It is vital for governance and institutions to continuously look for techniques to develop their business to overcome competition.

Introduction

Total rewards refer to a concept that illustrates all the requirements present to an employer that may be applied and used to retain, motivate, and attract employees. To a candidate or employee seeking a new job, the impression of total rewards is involved. The strategy of providing potential candidates and employees ample total rewards package is one of the most excellent techniques of retaining talents, engaging, and attracting potential employees. The total rewards benefits package typically composes work-life flexibility, compensation, performance, salary, growth and development, benefits, and recognition.

What Legal Compliance Requirements FFH Should Consider When Creating a Total Rewards Package

Several things impact employee’s compensation in any institution; some are external, internal, and part of the employee. Legal compliance, as one of the external factors, impacts the total rewarding package.

The officially authorized compliance needs FFH Company should adhere to when establishing total rewards packages are hours worked and minimum wage. Abiding by fair pay, state and federal wage laws such as mandatory break periods, overtime, and minimum wage needs can be very complicated (Reuters). A body known as the Fair Labor Standards Act is responsible for encouraging and providing limits when it comes to the amount or number of hours an employee is working in an institution weekly by supporting the provision of overtime work. The body also contributes to the minimum wage offered to an employee (Mathis & Jackson, 2011). The Fair Labor Standard Act assists workers to receive their appropriate minimum salary and get their right overtime compensation. The payment rate of overtime should not be less than one-half, and one time their regular price of payment is required after working for 40 hours a week (Reuters). There are two categories of employees FFH Company should also consider when coming up with a total rewarding strategy, especially when handling overtime. The nonexempt and exempt employees, the exempt employee need not an hourly wage but to be paid a salary while the nonexempt employee has a choice in either to be paid a salary or hourly wage. Under the FLSA, the FFH Company is needed to provide meal and break periods to its human resource. The Fair Labor Standard Act also creates the standards of child labor in local government, State, and Federal. The hour and wage laws are meant to safeguard employees and to make sure that their employers adhere to fairness when paying for work done (Reuters).

Analyzing components to include in FFH’s total rewards package

The total rewards package for an employee regularly composes of elements of compensation or salary, growth and development, recognition, performance management, work-life flexibility, and benefits. These six components are crucial to maintaining and attracting top talent in a market that is competitive hiring. The total rewards package is vital because it permits personal development and works environment motivation.

Compensation: Lawfully, employees have the right to be paid for the work they do; this makes compensation a compulsory element of total rewards. The settlement requires to be competitive, conversely, to retain and attract qualified employees. Strategies for compensation might comprise permanent pay, which is the base pay for the employee, and inconsistent pay, such as commissions and bonuses, which is decided by the worker’s performance. In research conducted, members were asked to show their actual practice on a fixed salary, total benefits, and compensation, benefits, and total cash compensation; below was their desired position of the market.

Recognition: workers require feeling their diligence is cherished and crucial to an organization’s ability to accomplish objectives. Jeff Haden, a contributing editor, recommends establishing a “recognition culture” this is where management routinely offers timely, genuine, and specific feedback.

Benefits: similar to a refresher, your benefit reward package should consist of bereavement and sick leave, leave of absence, and of course, vacation time. It should be lawfully mandated minimum needs such as social security, unemployment, and Medicare. Providing attractive benefit can assist you to be exceptional from your competitors.

Work-life balance: approximately more than half of employees in the United States feel as is they are overworked, 28% feel this frequently. Your aptitudes to assist workers in establishing a manageable flow of work and striking a favorable balance between personal responsibilities and demand for labor is vital for keeping your employees happy. Try your best to be as flexible as possible to be able to have room for workers who may have asymmetrical schedules resulted from family matters. You can also set time aside to provide counseling to assist your workers in offering scrupulous overview for options of investment.

Development and growth: lack of or less development and growth opportunities are the key reason that contributes to workers to leave their job. Do not permit that to be the reason you lose bet talents from your institution. Provide career development and growth opportunities associated with your worker’s objectives for growth and be sure to offer the resources they require, including access to courses and training.

Performance management: this is another crucial element of the total rewards package. You need to manage how your workers are doing and make sure you reward any improvement in the performance. Techniques of recording performance include; Periodic rating, monitoring, development and growth, planning, and rewards, and compensation.

Recommendation for a total reward package strategy for FFH’s management

It is recommended that FFH should put into consideration a new total reward package that supports a competitive salary. Focused around tuition reimbursement, incentive, paternity/maternity leave, unpaid/paid time off, flexible work hours, wellness program, there diverse alternatives of dental indemnity, three different choices of health assurance, and every job description. It is guaranteed that the new total reward package will result in the attraction of candidates with top talent and retain qualified and loyal workers within the organization due to improved strategies of compensation. The new total rewards package would assist FFH to strengthen and grow its internal relationship. Reimbursement of salary should be provided around or above the median wage, which the United States labor department reports. To help with decision making on what pay to contribute to the workers, Glassdoor indicates payments recorded with identical positions around the region.

Development and growth, recognition, recording performance, work-life flexibility, benefits, and compensation are essential aspects of this package to retain and attract top talents. Creating a trusting and an involving work environment where workers feel valued will assist the FFH gain success. Also, establishing a positive cultural climate will result in influential organizational culture. FFH will offer all its workers with skills and tools to succeed. “It starts with allowing each employee of the organization to identify that yes, you can be exactly who you are here” (Fallon, 2017)

Communicating human resource management needs, opportunities, and strategies with multiple stakeholders.

A successful HR depends on how healthy you engage and involve everyone in the institution to accomplish business objectives. FFH has to perform this and also conduct strong relations and communications management in the process. For the journey of acquiring successful HR, the FFH needs to have the right type of technology involved in the HR department. Every individual in the organization is a stakeholder in HR management requirements and strategy. Every individual who is influenced by HR processes should have a say. However, before the FFH get on implementing HR management requirements, policies, and opportunities, it needs to include all groups of stakeholders. It is in the attention of HR management to involve every stakeholder that has diverse viewpoints and interests. Only then can HR implement and design HR management requirements, opportunities, and strategies that every stakeholder fell to be involved and theirs.

The HR needs to bring proper understanding between different stakeholders; the HR department is developed and trained to meet their organizational and individual goals. Its employees are made to recognize that various actions of diverse stakeholders will help them accomplish their corporate and aspirations purposes. The strategies of human resources assist in creating unity and control behavior of all persons and inclusive development regarding the requirements of the institution. It permits valuable management and planning of all duties associated with the human resource; it defines all the needs on qualification development and staff training. Human resources also describe the methods of managing the performance of work, employee benefits, social programs, rewarding, and motivating individuals — human resource impact organizing techniques of institution, labor relation, and work conditions definition.

The strategies of human resources typically involve specific objectives and implementation schedule – through tasks, other actions, and projects. When creating a plan for human resources, several methods, and analytical techniques such as PESTLE analysis, VRIO analysis, and SWOT analysis are used. Human resource has opportunities, too; several tasks are related to human resource and are well-paying. Jobs such as Plant HR manager, Human Resource manager, and Project Human Resource manager are connected to HR opportunities. Their duties are not complicated; they coordinate, direct, and plan the administrative function of an institution. They oversee hiring, interviewing, and recruiting of new employees; they also consult with top management on strategic designing and act as an agent between the institution’s senior executives and the employees.

Reference

Kaur, G., & Sharma, R. R. K. (2019). Total Reward Strategies to Attract and Retain Employees: An Analysis of Indian Startups. Journal of Management Research, 19(4), 221-234.

Bussin, M., Christos, D., Pregnolato, M., & Schlechter, A. (2017). Gain and retain key talent through these rewards. HR Future, 2017(Apr 2017), 32-34.

Pregnolato, M., Bussin, M. H., & Schlechter, A. F. (2017). Total rewards that retain: A study of demographic preferences. SA Journal of Human Resource Management, 15(1), 1-10.