Total Rewards Programs: The Benefits and Challenges
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The paper explains the differences between total rewards programs and traditional salary and benefits programs through Maslow's hierarchy of needs theory and discusses how from an employee's perspective, a total rewards program often is more rewarding. The paper then examines employee problems with total rewards programs, as well as legal issues and the complex issues of severance pay involved. The paper clearly shows how while total rewards programs are becoming popular because of their ability to meet the needs of younger workers, their complexity poses a number of problems for HR departments. The paper concludes that the most effective departments will be the ones that are best able to resolve the complexity-related issues in order to extract the benefits of using total rewards programs.
From the Paper:"Total rewards programs differ from more traditional approaches to benefits in a number of important ways. The most significant difference is in the underlying philosophy - the traditional approach sees salary and benefits treated as separate entities while total rewards views all salary and benefits as part of one package. Reynolds (2005) argues that for younger generations, total rewards encompasses more than just salary and benefits but all of the elements that a worker receives from the job, including fulfillment, satisfaction and social order needs. The traditional rewards focuses on specific rewards for tasks (job descriptions), essentially ignoring non-financial needs. Total rewards packages are more oriented towards unlocking achievement and building a working relationship with the employee based on mutual trust and negotiation.
"Perhaps the best way to understand the difference between total rewards programs and traditional salary and benefits programs is by viewing the issue through Maslow's hierarchy. The traditional model views the employer's duty to the employee as delivering the safety and security afforded by salary and benefits. All of the social and self-actualization aspects are to be pursued outside of the course of business. The total rewards package concept is based on the understanding that employees want socialization and self-actualization in their work as well and the financial aspects."
Sample of Sources Used:
- Chen, H. & Hsieh, Y. (2006). Key trends of the total reward system in the 21st century. Compensation and Benefits Review. Vol. 38 (6) 64-70.
- HR Focus. (2009). What changes to benefits are coming in 2010? HR Focus. In possession of the author.
- HR Focus. (2010). 2010 benchmarks: Key measures to monitor. HR Focus. In possession of the author.
- Reynolds, L. (2005). Communicating total rewards to the generations. Benefits Quarterly. Vol. 21 (2) 13-17.
- Simon, T.; Traw, K.; McGeoch, B. & Bruno, F. (2006). How the final HIPAA nondiscrimination regulations affect wellness programs. Benefits Law Journal. Vol. 20 (2) 40-44.
Cite this Term Paper:
Total Rewards Programs: The Benefits and Challenges (2013, May 13) Retrieved December 08, 2021, from https://www.academon.com/term-paper/total-rewards-programs-the-benefits-and-challenges-153276/
"Total Rewards Programs: The Benefits and Challenges" 13 May 2013. Web. 08 December. 2021. <https://www.academon.com/term-paper/total-rewards-programs-the-benefits-and-challenges-153276/>