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Total Rewards Systems Proposal
Ivy Cuttino
Strayer University

Dr. Judie Bucholz
Hrm533- Total Rewards
February 10, 2012

Create a brief overview of the company requirements for a total rewards system.
Build-A-House (Bah) is a home improvement company that provides products and services for all your home improvement needs. BAH provides a service that employs over 150,000 employees in four different countries including the United States, Australia, Canada and Mexico. The company is great at hiring diverse individual and also has a foreign language hotline for those who are shopping and do not speak the native language. This hotline will assist and interpret for the customers and associates in order to expedite their shopping and make it easy and less hassle. BAH believes in dedicated and loyal employees to make a difference in the service we provide to our customers. BAH believes that the employees are the heart of the company and to come up with a total rewards package that will not only help employees but will make money for the company. BAH will come up with a profitable total rewards strategy to ensure that the employees are being rewarded for all of their dedication and hard work. BAH will come up with a good recruitment strategy by obtaining the best of the best by being competitive and making sure there are standard practices. BAH will also make sure that there is a great coaching and mentoring program is in place to ensure personal growth and development for the employees. With a strong mentoring program in place you are empowering the employees to find different ways and solutions to handle situation that may arise. With many different cultural backgrounds you are inviting the employees to share and exchange information that might help them in their careers.
To implement a total rewards plan, business leaders must tackle a broad range of challenging questions. Everything from who will design the plan and what types of rewards it will include to how the plan will be funded and under what business conditions the plan is intended to operate. When executive overlook one or more of these questions, they risk developing mediocre results once it’s implemented.
Formulate a total rewards strategy to encompass the fundamentals of compensation and the regulatory environments.
Total rewards which encompasses not only compensation and benefits but also personal and professional growth opportunities and motivating work environment.
Total rewards strategies
Compensation
* Base pay – Wages and salaries * Merit Pay- Base pay increase based on employee performance * Incentives- Cash bonuses based on employee performance * Promotions – Based pay increase based on potential to perform new job * Pay increase - Based pay increase based on length of service with the organization
Benefits
* Health and Welfare – Payment for injuries and illness on and off the job * Paid Time off – Payment for vacation time or excused days from work * Retirement – Payment on work no longer performed based on length of employment
Personal Growth * Training – Skill development through on and off the job instruction * Career Development – On the job coaching to development skills * Performance Management – Ongoing goal setting and feedback to develop skills.
By properly developing project team that will conduct focus groups, assessment and surveys to get input on different recommendation, suggestion and ideas for a total rewards programs that will be beneficial to the employees and the company.
When coming up with a total rewards package you must make sure you are not violated any labor law, act (for example the civil right acts, equal pay act) and policies that are put into play to protect the working class.
Explain the advantages of the total rewards strategy you are proposing and how it might satisfy the employees’ needs. The purpose of this total rewards strategy is to recruit, retain and increase performance levels with the organization. BAH want to have the best of the best in the home improvement industry. The advantage for the company compensation part of the total rewards strategy will be encourage positive team work, exert most powerful impact on productivity, and increase shareholders returns and company profit. Owing to their hefty price tag, benefits such as health care and insurance constitute an increasingly large proportion of total rewards cots. As a result, BAH wants to ensure an acceptable return on our investment in the form of employee performance. Flexible benefits plans can increase employees’ satisfaction with the system. With these types of benefits, employees can select from a menu the benefits they receive based on what they value most at different life stages. For example, retirement benefits and health care are less important to workers in their 20s, but become increasingly important as employees age. Personal and professional development opportunities—such as training, career development, and performance management—can constitute valuable rewards for employees. By compensating employees fair and rewarding them you are able to retain those that are hard workers and dedicated to the organization.
Determine the key communication components of the total rewards system.
Once the project team has designed a total rewards system, it moves to the execution phase of the implementation process—putting the new system in place in the organization. During this phase, the team must consider numerous issues, each examined below.
The more employees that know about BAH rewards system, the more satisfied they will be with it. And with greater satisfaction come greater commitment and engagement at work. Make more information about the total rewards system available to employees, especially details about how the system operates. Once the strategy comes to play there are several ways to communicate this to the employees: * Personalize total rewards by creating a statement for each employee detailing the rewards he or she will receive. * Minimize the use of traditional communication vehicles, such as policy statements, to announce or explain rewards. * Encourage one-on-one conversations or departmental meeting between supervisors and employees about total rewards. * Provide more interactive communication through your company Web site or intranet.

Indicate your strategy for devising a competitive pay structure. Accurate job descriptions need to be written thoroughly and completely in order to have a competitive pay structure. A standard base pay program offers fixed salary ranges for each position type for employees performing the standard duties of their jobs. By setting up minimum and maximum levels within those pay ranges to account for variations in experience and skill levels. When setting the base pay structure, by using resources will determine where BAH falls within the industry as well as competing industries that may also offer job opportunities for BAH employees. Set up your pay levels to be competitive, or else you risk losing employees. The internet can be a great source to find industry-standard salary levels for specific jobs in specific geographical areas. Once your base pay structure is in place, BAH will then set up a merit pay program that will take the employee through the salary range for their position at a performance-driven speed. This comes into play when the employee's managers do annual employee performance reviews. The downside of this is that employees may begin to see it as a given that they will get a salary increase after each evaluation, and it ceases to be a motivation to perform better in their jobs.
Incentive-based compensation is becoming much more common because of the increased emphasis on performance and competition for talent. This type of compensation structure significantly helps motivate employees to perform well. Hiring bonuses are also frequently used now, even for new college graduates. However, you might want to tie in a specific time period prior to the employee collecting this bonus -- for example, one-half after six months and the remainder after one year of employment. Otherwise, you could run the risk of the employee departing after that first check, which would defeat your purpose. So does that mean incentive compensation is the way to go? Maybe so, if your business is in an industry where you really have to compete to get good employees.
Setting up an incentive-based compensation program requires the same research into your industry as the base pay program. You'll still establish base pay levels, but it may be slightly lower and you will build into that base the annual or quarterly (or any other interval) bonuses, commissions, or other types of shared cash compensation.

References
HR Focus. (2006). Retention, morale, and productivity result from work/life programs. 83:10,S1-S3.
Nelson, B. (1994). 1,000 ways to reward employees. New York: Workman Publishing.
Roussel, P. & Heneman, R.L. (1997). The emergence of individual reward systems in France. American Compensation Association News, 18-20.
Williams, M.L., McDaniel, M.A.,& Nguyen, N.T. (2006). A meta-analysis of the antecedents and consequences of pay level satisfaction. Journal of Applied Psychology, 91:2, 392-413.
Worldatwork. (2007). The world at work handbook of compensation benefits & total rewards. Hoboken, NJ: John Wiley & Son.

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