Different Legislative Acts Applied to Compensation and Benefits
The Workmen’s Compensation Act provides the compensation to the different employees working in different sectors of work areas along with the dependents in the case of injury and accident. There is inclusion of certain occupational diseases as well which will be covered in the respective act. These kinds of diseases will be arising out and in course of employment along with resulting in disablement or death.
Government Employees Compensation Act- The main aim of the act is to provide the different employees of the Crown Agencies and corporations who are eligible for the benefits. It is provided by the Government Employees Compensation Act with respect to personal injury resulting from accident or occupational disease in course of employment.
Merchant Seamen Compensation Act- In the respective aspect, it ensures that merchant seamen who are injured in the work-related accidents, will be receiving health benefits and medical compensation. The Act will be providing financial assistance for surviving dependents if the cause of death is the work-related injury (Hood, Hardy Jr & Simpson, 2016).
Flying Accidents Compensation Regulation- In the respective act, it is made pursuant to Section 7 wherein it provides payment of compensation to the different employees or the dependents wherein the death and injury are the direct results of non-scheduled flight while undertaken by employees in course of duty.
Alignment between Organizational Strategy and Total Rewards Package
The total rewards package comprises of all the goods which the different employees tend to value in the relationship with the organization. It comprises of the benefits given to the employees, compensation paid to the employees and the overall work environment which is experienced by the employee. The Total rewards package is aligned in a manner such that, it is rightfully aligned with the people strategy in an organization and the business organizational strategy. According to Kaplan (2007), various organizations have realized that they will be required to offer a compensation package to the employees which would value talent and assist the firm in achieving the overall goals of the organization. The different compensation and benefits program are generally financial in nature and hence, need to be present on a baseline competitive level so as to ensure that the companies are able to retain the talent. In addition to this, as agreed by Medcof and Rumpel (2007), the overall performance of the employee can be understood to be closely related to the organizational performance. This means that any employee who aims to attain success in the long run would be required to contribute effectively to the organizational productivity.
The organizational strategy and the people strategy of the firm should be designed in a manner such that, it is successfully able to fulfill the overall objective of the Total rewards and vice versa. The organizations like Google and Volkswagen often take considerable measures to ensure that they take measures to align the business strategy with rewards package by offering the different employees with an incentive that lures them to perform well and providing them with a flexible working environment so as to increase their overall productivity (Medcof & Rumpel, 2007). Hence, there exists a strategic relationship between the Total Rewards strategy and the Business and Organizational strategy.
Total Rewards Package
The total rewards package can be stated to be the total compensation and other benefits which may be provided to an employee in order to help them and assist them to work for the organization. The elements comprise of the base pay, stock options, dental and vision benefits along with paid time off and other related benefits. It also comprises of performance bonuses, company training, and wellness program for the employees and workplace flexibility options which then assist the different individuals to perform well and contribute to the overall success of the organization.
The components of the Total Rewards are as follows:
Compensation: The compensation can be described as the payment which is made to the employees in the form of money. The different components of the pay are as follows:
- Fixed pay
- Variable pay
- Short-term incentive pays
- Long-term incentive pays
Benefit: The benefits can be stated to be the health and dental insurance which tends to provide added benefits to the different employees. This also comprises of the Employee assistance program, various discounts on fitness programs and other related benefits (Rumpel & Medcof, 2006).
Work Life Benefits: The work life balance which may be provided to the employees comprises of the work place flexibility, unpaid and paid off time, health initiatives, involvement programs and other related benefits.
Performance and Service Recognition: In this, the employees are provided with awards and other performance compensations which may make them loyal towards the organization. These are the service awards, the retirement awards, the peer recognition awards, Employee of the year and month awards in addition to the performance evaluations which help in increasing the overall morale of the different employees as present in the firm (Manas & Graham, 2003).
Career Development: The last component is the Career development whereby the employer provides the different members of the firm with an opportunity to enhance their careers. This comprises of the following aspects:
- International assignments
- Tuition reimbursement
- Corporate universities and mentoring programs (Reynolds, 2005).
- Seminars workshops and conferences
- Leadership training
Summarization of Total Rewards Package
In order to analyze the reviewing the evaluation of job, meeting the market trends and recognizing the performance of employees, it can be identified that:
After the overall review of the document of the evaluation of job, assigned total rewards analyst may meet with manager or communicate via email to ask clarifying questions to ensure full understanding of the work
There can be internal evaluation which will be conducted utilizing the current system JOBMEANS which will measure factors which is determined by Department of Labor in every job at each and every level (Bodenhausen & Curtis, 2016).
Furthermore, the analyst will be reviewing the third-party salary survey library for the appropriate benchmarks as to conduct market study of comparable jobs. Based on overall information, the analyst will discuss the recommended solutions and outcomes with team of Total Rewards and make the proper adjustments which are required before recommending outcome. Lastly, the manager will be notifying the incumbent of job evaluation outcome (Rees & Smith, 2017).
Meeting Market Trends
There can be inclusion of the different internship related programs that will be helpful and effective in creating intern pay for the ones which will be defined as the most effective methods in improving their work experience appropriately. Furthermore, the pay which will be increased for the different employees working in organization along with for the interns who are working in the organization should be competitive as similar pay or similar work is essential (Pregnolato, Bussin & Schlechter, 2017).
Recognizing Performance of Employees
The Pay for Performance is designed in such a manner which will be helpful in rewarding employees. As per the Total Rewards Program, the performance-based increases are the primary approaches through which the employees feel motivated and the work will be done accordingly. The program rewards the employees in accomplishing the goals and objectives and pay for performance is linked with Performance Link as it is the primary method by which the employees progress regarding pay through their pay range.
Differentiate Metrics to Assess Effectiveness of Total Rewards Package
There are different kinds of metrics available which helps in assessing the overall effectiveness of the total rewards package and it will be helpful in managing the motivation among employees.
Turnover Rate of Employees- In the different organizations, it has been noticed that the employee turnover is increasing at a huge rate as there is no inclusion of health insurance provided to employees and it is affecting the morale of employees. There is no such inclusion of perks and compensation benefits available to the employees that affects the morale of the employees. In order to improve the scenario, the turnover rate of employees can be reduced through proper inclusion of perks and health benefits are required to be included in the policies of the organization (Smit, Stanz & Bussin, 2015).
Employee Satisfaction Index- In different organizations, the satisfaction among employees has been affected due to the lack of motivation and promotion aspects. In order to improve the overall scenario, it can be recommended that there should be inclusion of Pay for Performance rewards wherein the workers will be rewarded for their performance (Martin & Ottemann, 2016). Additionally, it should be inclusive of communication between managers and team members about their performance and development of team as it will be helpful in improving the overall scenario efficiently.
Promotional increase among employees- The given metrics can be used to assess the effectiveness of the Total Rewards package by measuring the number of promotional increases which take place among the different employees (Lyons & Ben-Ora, 2002). This measure reflects the people who have been associated with the firm since long and are satisfied with their package and total rewards being offered.
Efficiency of the Employees- The efficiency of the employees can also be used to assess the effectiveness of the Total Rewards package because, if the employees perform efficiently then it can be understood that these employees are quite satisfied with their work and the total rewards being provided to them.
Bodenhausen, C., & Curtis, C. (2016). Transformational leadership and employee involvement: Perspectives from millennial workforce entrants. Journal of Quality Assurance in Hospitality & Tourism, 17(3), 371-387.
Hood, J., Hardy Jr, B., & Simpson, L. (2016). Workers' compensation and employee protection laws in a nutshell. West Academic.
Kaplan, S. L. (2007). Business strategy, people strategy and total rewards. Benefits & Compensation Digest, 44(9), 12-19.
Lyons, F. H., & Ben-Ora, D. (2002). Total rewards strategy: The best foundation of pay for performance. Compensation & Benefits Review, 34(2), 34-40.
Manas, T. M., & Graham, M. D. (2003). Creating a total rewards strategy: A toolkit for designing business-based plans. AMACOM/American Management Association.
Martin, T. N., & Ottemann, R. (2016). Generational workforce demographic trends and total organizational rewards which might attract and retain different generational employees. Journal of Behavioral and Applied Management, 16(2), 1160.
Medcof, J. W., & Rumpel, S. (2007). High technology workers and total rewards. The Journal of High Technology Management Research, 18(1), 59-72.
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.
Rees, G., & Smith, P. (Eds.). (2017). Strategic human resource management: An international perspective. Sage.
Reynolds, L. A. (2005). Communicating total rewards to the generations. Benefits Quarterly, 21(2)
Rumpel, S., & Medcof, J. W. (2006). Total rewards: Good fit for tech workers. Research-Technology Management, 49(5), 27-35.
Smit, W., Stanz, K., & Bussin, M. (2015). Retention preferences and the relationship between total rewards, perceived organisational support and perceived supervisor support. SA Journal of Human Resource Management, 13(1), 1-13.