Assignment 3: Total Rewards System Proposal Due Week 6 and worth 250 points This research-based assignment focuses on the latest available information about creating, organizing, and managing a total rewards program. Envision a service-based (insurance, telemarketing, or other) profit organization that employs 20,000 employees in 17 different countries. There are 2,000 management-level individuals who speak a variety of languages. The company employs diverse individuals who are governed by multiple regulatory environments. Write an eight to ten (8-10) page paper in which you: Create a brief overview of the company requirements for a total rewards system. Formulate a total rewards strategy to encompass the fundamentals of compensation and the regulatory environments. Explain the advantages of the total rewards strategy you are proposing and how it might satisfy the employees’ needs. Determine the key communication components of the total rewards system. Indicate your strategy for devising a competitive pay structure. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are: Define total rewards and describe the advantages of a total rewards approach. Analyze an organization’s strategy, workforce, operating environment, and key stakeholders to identify critical factors in designing a total rewards strategy. Evaluate the elements of a total rewards communication program. Use technology and information resources to research issues in total rewards. Write clearly and concisely about total rewards using proper writing mechanics.


Total Rewards System

Student’s Name

Institution Affiliation


Date of Submission


Total Reward System


Institutions of various sizes and composition in the current business set up; are typically associated with the urge to present their workers with an effective mix of pay and advantages to employ and keep highly competent workers within the business institution. To evaluate these emerging facts, the research-centered assignment will strategically examine the modern available data regarding the creation, organization, and the management of a total reward program for a service-centered profit institution that employs up to 20,000 workers in 17 various nations. The company of focus incorporates close to 2,000 management-level people who are diverse and speaks the array of languages as well as different people who are controlled by different authoritarian surroundings. Consequently, the paper looks into the prose with the aim of highlighting a concise overview of the organization’s needs for a total rewards scheme and comes up with a total rewards program that evaluates the essential considerations of reward and the regulatory set up that the service-centered for-profit institution competes. An evaluation of the advantages of the planned total rewards program and the manner in which it fulfills workers requirements is followed by a purpose regarding the essential communication apparatus of the total rewards method. Lastly, the paper will provide a brief abstract of the research and the essential conclusion regarding a total rewards structure.

Requirements of a Total Rewards Structure

Even though the detailed necessities for total rewards coordination will range from one organization to the other, various investigative studies conducted to date approves that a total rewards structure can typically expose a business to a competitive benefit through incorporating a holistic vision regarding compensation. It is also essential to extend the traditional strong examination regarding the modes of payment and benefits to incorporate other associated rewards present within the workplace, together with the availability of a stable work surrounding and opportunities for constant learning and growth. The prospective return on investment is viewed as a thoughtful and all well-articulated total rewards system is significant to the company or the business. As observed by Cao, Z., Chen, J., & Song, Y. (2013), since these compensations are considered as high priorities for the employees, total rewards system offers a chance of evaluating the undiscovered prospective of the business. Properly structured rewards will typically ease the significant attraction, maintenance and enthusiasm problems experienced within the industry. Therefore, as another essential requirement of a total rewards system, the work-life balance should be incorporated where the work set up should encourage a healthy balance between work and personal time. If an employer creates an environment that acknowledges the worker’s needs to have a work program that enables them to acquire enough rest, it encourages better work morale. There is also the urge to promote wellness via fitness equipment, nutritional programs, health screening and fatigue reduction workshops.

As evaluated above, effectively formulated and controlled, total rewards system is capable of providing organizations of all sizes and kinds with a constant competitive improvement over other competitors that do not embrace the program. For example, a total rewards structure can be incorporated to provide an institution with a viable advantage. According to Cao, Z., Chen, J., & Song, Y. (2013), in any total rewards system, the entire human resource services and products are centered on the organization’s workers with the aim of encouraging optimal performance. However, achieving this optimal performance need the entire human resource operations to integrate their duties with the aim of supporting other organizational duties. Perhaps one of the essential needs of a total rewards system is the articulation for constant training and development since, without any promise of career security, workers normally conceptualize various inducements they acquire from the industry as part of the company’s total rewards system. Worker training and growth is the essential facet of any reward system as training can assist in dealing with the erosion regarding the social contract that exists in several nations guaranteeing lifetime employment in return for unwavering worker loyalty and hard work. Typically, workers expect that in cases of not having a job security with the new psychological arrangement, the employer ought to have a guarantee that it will offer them the training required to keep their marketability standards.

Total Rewards Strategy

A well-outlined reward viewpoint typically drives a managerial success through controlling pay and other essential compensations within the business set strategies and operational functions. It strategically outlines the basis for prepared design and management and holds onto the existing and prospect plans to the industry’s background and values. Constantly recognizing and acknowledging achievements is a significant aspect of the business compensation philosophy globally (Shields et al. 2015). The set assignment of the company is to typically draw, select, promote and place all workers based on their credentials and experiences as the institution perceives that performance-centered reward assists in attracting, developing, and keeping all the talented stakeholders. In addition to the support pay that is centered onto local selling status and targeted to the top market, the organization makes available the following types of prospective compensation to incentive performance. There are the annual value increases where the entire exempt and nonexempt compensated workers are qualified, yearly promotions, yearly spot bonuses, short-term incentives reimbursement and long-term motivation compensation. Since the payment initiatives must go in line with the specific set laws mandated to provide fairness on how the workers should be paid, the compensation procedure of the institution typically focuses on the laws and all of the set regularities.

There should be no any form of discrimination regarding color, race, Sex, national origin, disability at hiring, pregnancy, religion, firing and promoting. Within the organization, there are set regulations regarding the working conditions and workplace safety while the nonexempt worker’s wages plus the overtime payments are typically in line with the fair labor standard act requirements. Also, there are several global, federal, local and state laws that typically control and impact on the compensation and employment procedures (Shields et al. 2015). Regarding the global level, there is the international labor organization that is managed by the United Nations and charged with the responsibility of overseeing matters arising on child labor, any form of discrimination and collective bargain agreements. Also, in the United States, there are several laws and acts in place that typically highlights labor concerns and practices on the homeland where the most known laws include the Americas with disability act, the fair labor standards act, minimum wage, unemployment regulations and overtime pay. Every state and local government have their own employment regulations for all the employers who fail to do business over state lines or universally. Therefore, it is essential that the institution follows all regulatory requirements associated with its business undertakings.

Advantages of the Planned Total Rewards Strategy

The main intention of this technique like any other rewards process is to improve the recruitment strategies, retention and performance degrees within the organization. The main objective of the organization is to be ranked as the first preference of prospective workers to operate which also hinders its status in a positive manner. The total rewards strategy is essential in handling all issues attributed by employment and preservation as it will assist in creating a working understanding that typically fulfills the desires of workers and motivates them to input more attempt in the organizational duties. In the current set up, employees are looking outside the big picture in making a decision on the organization they want to work (Armstrong, 2010). Employment and private life should be viewed as corresponding priorities; thus, when an organization assists its workers to successfully manage both their individual and work lives, they feel a much stronger obligation to the business in achieving the set goals and objectives. Moreover, a number of studies done indicate that workers focus on the total rewards enclosure when making decisions on whether to connect or to stay with an institution. An authentic synopsis statement can be made available for probable workers thus allowing them to focus on the entire worth of being employed by an organization. As such, potential candidates will typically explore the existing options with other institutions as organizations with the total rewards program have an aggressive advantage since they are capable to illustrate the total worth of their service packages.

Also, the proposed total rewards strategy is capable of providing some other important outcomes plus increased flexibility and competence of the human resource purpose in support of the industry’s far-flung 20,000 workers in 17 other nations. Just as organizations generate niche goods and services to compensate for the small customer divisions also referred to as micromarketing, workers need to begin coming up with various categories of compensation packages for various labor force divisions. This aspect is typically true in a universal work market where employee’s diversity is embraced as the rule, not the omission, and when certain skills are in diminutive supply. A total compensation program that incorporates transactional and relational benefits typically offers enormous flexibility as it enables profits to be combined and remixed with the main aim of satisfying the various expressive and motivational wants of the workers. Flexibility is an essential factor within a business set up as both the employees and the employer typically find it necessary for the smooth operations of the organization (Armstrong, 2010). As the significance of flexibility has emerged and become more understood, a majority of industries are allowing their workers to evaluate when they operate, where they work, and the manner in which they operate. Total rewards system acknowledges that worker’s needs, and on several occasions require, the effort to incorporate their way of life and their work. The third benefit it offers is that of lowered labor cost or cost turnover as it is considered as the main function of employment process and preservation is sometimes imperceptible. Evaluations are done on the entire price of losing one position to earnings typically ranges from thirty-five percent of the annual wages of the situation for hourly workers to 160 percent. Moreover, the total cost of revenue incorporates indirect expenses such as losses made by consumers and sales together with lowered efficiencies as competent workers leave thus leaving the rest of the employees unfocused.

Key Communication Components

Notably, a competitive and effective total rewards system is not considered competent if workers and prospective employees are not aware of the key elements in it thus making communication of the system just as significant as the system itself. Before the organization begins its communication process with the workers, it ought to come up with some critical issues including the manner of which the communication process will be made with various levels of employees, when to communicate, mode of communication and who to do the communication process. After the organization has clarified its mind regarding the mentioned concerns, the communication strategy can be started (Walker et al. 2010). Strategically, there will be two groups that will take part in the communication process and due to the need of various communication styles and media, the group one will be charged with the duty of communicating all exempt workers while group two takes care of nonexempt workers. Group two will submit detailed data to the nonexempt employees on the strategy used during the recruitment phase and make detailed emphasis on the effective implementation of the planned strategy and policies. Group one, on the other hand, will provide scrutinized data to exempt workers during the recruitment procedure; however, they will have to make emphasis regarding tailored rewards with the aim of motivating them. Moreover, both the groups will be given a written clarification highlighting the techniques to both exempt and nonexempt workers. Also, there will be the use of audio on the methods used for nonexempt workers and toll-free lines essential in providing directions to both exempt and nonexempt workers on the utilization of remuneration.

Furthermore, people charged with advertising will have to be accessible at the organization for presented workers who typically desires to incorporate the expected advantages; for instance, a worker involved in an catastrophe and acquired various disabilities can commence receiving assistance disability initiatives regarding the strategy of the organization’s advisors. Also, the main intention of the advisors is to come up with a career path for the workers and offer guidance for those people who want to acquire reimbursement opportunities as well as availing training initiatives within the organization. This enables employees to have verbal communication with them whenever they want (Walker et al. 2010). In cases where alterations happen regarding a component of the program, the organization brings together workers in a conference room with the objective of letting them know about the changes made. Therefore, proper statement at every phase of the process is significantly essential for the organization.


Competitive Pay Structure

For one to put together an aggressive pay system, the business has the mandate of creating an exact description of the careers to be examined since the job explanation is applied in ensuring a precise and accurate comparison with that of the available market evaluations and for inside evaluation with other careers within the organization. The job narrative ought to outline the main reason as to why the job was created and some of the list of fundamental duties and responsibilities within the business (Pertusa-Ortega, Molina-Azorín & Claver-Cortés, 2010). It is a recommendation that it spells out the detailed qualifications required for the experienced performance of the career responsibilities, incorporating educational and experience needs, skills and efforts required to articulate the job together with any existing physical needs and surrounding disclosure encountered.  External fairness is more significant for the organization than that of the internal fairness; therefore, the procedure of gathering information through surveys is the in fact essential procedure for the business. At the recruitment phase the degree is elevated than that of the market but with time, when an assurance has been acquired from the workers over some time with benefits of the industry, the speed is kept at line selling value during the previous years of staff. Therefore, the least amount wage of the careers is greater than market but medium and highest are in line with the market.


Articulating and implementing a total reward system needs a large-scale technique that typically drives institutional change; thus, the top management initiatives towards achieving this procedure are essential for the success of a total reward system. The project team ought to be composed of decision-makers together with front-line workers with the aim of evaluating that the methods to be used are well-rounded and fulfills the wants of everyone at the table.


Armstrong, M. (2010). Armstrong’s Handbook of reward management practice: Improving performance through reward. Kogan Page Publishers.

Cao, Z., Chen, J., & Song, Y. (2013). Do Total Rewards Reduce the Core Employees’ Turnover Intention?. International Journal of Business and Management8(20), 62.

Pertusa-Ortega, E. M., Molina-Azorín, J. F., & Claver-Cortés, E. (2010). Competitive strategy, structure and firm performance: A comparison of the resource-based view and the contingency approach. Management Decision48(8), 1282-1303.

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., … & Plimmer, G. (2015). Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.

Walker, J. S., Gelman, G. M., Jorasch, J. A., Tulley, S. C., Santisi, S. M., Tedesco, D. E., & Fincham, M. M. (2010). U.S. Patent No. 7,780,525. Washington, DC: U.S. Patent and Trademark Office.

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