Total Rewards System Proposal: Managing a total rewards program

Create a brief overview of the company requirements for a total rewards system.

Herizon is the largest telecommunications and broadband companies in the United States. We employ 20,000 employees in 17 different countries. We have a very diverse workforce with 2,000 management-level individuals who speak a variety of languages. We at Herizon believe having the right talent, at the right cost is what keeps our company striving. Our total rewards program delivers values that attract, retain and engage a mixture of talent across the globe while maintain a solid value for cost. As a leading telecommunications company we take pride in not only serving our customers but, our employees too. This is why we take great pride in our total rewards program. We want to make sure that we attract the best to work for our company, by offering the best. Our total rewards system is geared towards all of our employees. We have structured a program that will meet the needs of everyone, our total rewards program offers diversity. We have developed a plan that will offer great compensation, along with career development, retirement planning, profit sharing, and work life balance. We want our employees to know that we are a one stop shop. Our total rewards program is geared to keep our employees and to grow them within our organization. We care about your future and we take pride in knowing that our people are taken care of. We follow the success of our employees from onboarding through succession and or retirement. By aligning all the components of total rewards with our overall business vision, we ensure that our workforce is on the same page. We at Herizon base our total rewards program only on what we can measure.
Formulate a total rewards strategy to encompass the fundamentals of compensation and the regulatory environments.
Herizon’s compensation program has been very successful. Our philosophy provides a foundation to ensure that each program and system works effectively with others. We have identified some of our most prominent competitors and have kept our organization both competitive and innovative, always one step ahead. We set our pay levels above market rate to attract top performers. We have four levels in which we bring in new consultants. Based on experience/education an employee can expect to be bought in at four different levels. Level one which is our beginner pay rate, then level two, three and level four which is our top pay. However whatever level an employee is given as a starting rate will increase after six months to the next rate, until that employee reaches top pay. After top pay which is currently paid at $1200 weekly the employee will only receive an increase if there is a cost of living increase and that is assessed annually. A cost of living increase is a specific type of general increase that is typically awarded in equal cents per hour or percentage terms to all employees in a pay program or structure. Cost-of-living allowance (COLA) increases, however, are intended to protect employees’ purchasing power against erosion caused by inflation. These increases typically relate to increases in the Consumer Price Index (CPI). Thus, all cost-of-living increases are general increases, but not all general increases are cost-of-living increases (WorldatWork 2007). However employees enjoy low medical contributions, advanced tuition reimbursement and company matched 401k plans. Managers do not have input on compensation, they are there to guide and strengthen employees and assist with day to day tasks relating to job performance and skill. Human Resources primary responsibility is to recruit and onboard new employees, satisfy all new hire paper work and information, and act as a liaison for employees. The payroll department takes care of all question about compensation. The salaries for all consultants are fixed at their respective levels and are managed by the payroll administration along with human resources. The salaries for management are set a little differently and are based on level of experience.
Explain the advantages of the total rewards strategy you are proposing and how it might satisfy the employees’ needs. The total rewards strategy that I have implemented for Herizon has many rewards that will benefit the organization and the employee. Offering a total package that not only includes the basic compensation and benefits but, also includes work life, performance and recognition and development and career opportunities we are able to showcase our organization to high-performing candidates. Thus by showcasing our organization and offering competitive total packages we make a name for ourselves that people will want to be associated with. People love to be affiliated with a well-known and well respected brand and, by doing this we improve the effectiveness of recruitment and show we are a progressive company. While working for Herizon employees will see that we deliver top notch benefits which shows that we care about our employees, which in turn will become a form of networking on behalf of our employees when they speak highly of our company thereby solidifying our reputation. This not only helps increase employee morale and engagement but, can also save our company money by not having to advertise as much. Another great advantage of a total rewards strategy is the increase in retention rates. If our employees are happy and feel like they are secure and have everything they need to be stable and successful they will not want to leave our company. Our retention rates will be high and, we will have a low turnover rate. This will benefit the employee in every way. Employees will be able to see first-hand what we are offering as a company and why they should join our team. We put everything on the table so there is no confusion what we offer. Employees will be compensated with competitive salaries. We offer benefits that will secure your health and wellness and your families as well. We offer financial education, retirement plans and profit sharing is also included, we are only as good as our employees so why wouldn’t we share the profits. We care about making sure stress levels are kept low so we have incorporated a work-life program that will benefit anyone who may need to alter their normal work schedule due to illness, childcare or adult dependent care needs. At Herizon we want our employees to grow with no company, no one gets left behind. This is why we offer free on-going trainings and seminars and also tuition reimbursement. We want to help you help yourself to the level of success you want to have.
Determine the key communication components of the total rewards system. Key communication components for a total rewards system starts with effective communication. Communications should be comprehensive it should start with the vision and mission of the organization and where the company wants to be now and in the future. It should detail what the company is doing and what it needs its employees to do in order to reach those goals. Communication should point out how employees can align themselves with the goals and vision of the company. In respect to the employee the communication of the total rewards system should clearly define and outline what the company has to offer to the employee and why our organization should be considered a total package. Employees need to be able to access information quickly, so the company needs to have up to date technology to serve as a search engine for any and all information the employee needs. The communication needs to be accessible at all times. Most importantly employees like to be able to talk to someone, and not just a computer. So having a human touch is a plus and gives any organization that personal touch needed to build company morale. Having a supportive culture is also a key component, culture and rewards are cohesive. Culture is the how people work and they are organized, also how trust and respect are derived. Rewards go beyond monetary, they include work that people find rewarding, like being recognized, being able to advance in their career and having feedback to know where they can improve and work that they feel are meaningful. Companies will inevitably achieve good results by creating new ways to work, hiring flexible and capable employees and staying innovative.
Indicate your strategy for devising a competitive pay structure. To entice new employees and retain them we have created an appealing incentives for our current and prospective staff. We have created a competitive pay structure. By researching and exploring our competitors we have figured out what salaries would attract top performers in today’s economy. When planning a pay structure it is recommended that you review the positions in your company and understand their role in reaching long term goals. In some cases one position might deserve more rewards than another. First we designed a job analysis to study the jobs in the organization, with a detailed list of duties, tasks and responsibilities and any knowledge and skills necessary to do the job. Next a job evaluation to judge the relative worth of the jobs in our organization, and ensure that pay is aligned and fair to our employees. Pay policy identification determines whether we want to lead, go below or meet the market rate in compensation. In our case Herizon is in the lead. The pay strategy we use will help influence employee attraction and retention. Pay survey analysis analyzes compensation data gathered from other employers in a survey of the relevant labor market. This informative keeps us competitive and helps our organization to stay ahead. Finally pay structure creation is the internal structure combined with the external market pay rates to develop a market pay line. The market pay line can be adjusted up or down. In completion of the pay structure, pay grades and pay ranges have been developed. In conclusion a Total rewards system delivers values that attract, retain and engage a mixture of talent across the globe. With a company the size of ours we must attract the best. This means that we have to offer an attractive total rewards package. Keeping in mind that every employee is an individual and no two people are alike. We must meet the needs of everyone. Since we have employee in 17 different countries we must make sure that we are being culturally diverse in our total rewards programs and adhering to those who are governed by multiple regulatory environments. We are pleased to be the leader in telecommunication and we pride ourselves on not only serving our customers but meeting the needs of our employees as well.