Introduction
An organization’s overall competitive strategy can be improved through several means. One such method is through innovations. The 21st century has witnessed competition for human resource that has proved to be a crucial factor of production. This paper will address a number of issues related to new and improved rewards at work
1. Determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization.
Employee benefits innovations have the ability to improve can improve organizations the overall competitive compensation strategy. Employees are always motivated by a program that aims to reward them in the workplace for their efforts. In the 21st century, the difference between top companies and small companies is based on the type of the reward program available. At times, these programs have gone beyond mere compensation strategies in organizations to motivate and retain the best employees. The increased competition for top employees in a specific field means that companies will do anything within their powers to poach top employees from competing organizations. The behavior of employees is usually determined by the type of reward program that the employer uses. Employers that use an excellent program are likely to impact their employees positively and reinforce the company’s overall strategy. This is essential in enhancing organizational success in the economy (Galbraith et al. 1991).
Before developing an effective rewards program, a company has to take into account a number of factors. First, it has to analyze the employee’s compensation. Other factors that should be taken into account include work-life balance, benefits, recognition, career opportunities, development and performance. The constant changes in the market mean that competition for the available resources is increased. The fact that employees provide the relevant human resource means that they will be scarce, leading companies to a standstill because of lack of human resource. With this knowledge, employees expect rewards that are comprehensive, combining elements that bring value to them.
Companies should be innovative when giving their employees benefits. For instance, they can introduce cards for the purpose of fueling. This can play a big role in enhancing performance in the workplace. Such rewards should be instant instead of them being carried forward to the employees’ bank accounts. When such rewards are from the supervisors for behavior or good performance, employees tend to appreciate them highly. Managers and supervisors should not only worry of the effectiveness of such programs that address compensation for good performance. The human resource has a duty to handle the exchange value because the employees that are engaged bring into the organization value in return of rewards, both tangible and intangible (Galbraith et al. 1991).
Organizational structures have played a big role in shaping the future of organizations. Unlike the past, there is an agreement among experts that organizing and performing tasks in the conventional manner is not the most effective way. Managers should ensure that future organizations have better orientation on realizing adaptations flexible enough to increase the rate of reaction.
Of importance to note is the fact that an organization’s versatile employees can perform different functions and tasks quickly. This is essential for the development of the organization. Employing remunerations systems that are rigid, for instance, salary packages is a doomed practice. It is, therefore, important for employers to ensure they have innovative mechanisms through which they can reward their employees.
2. Explain how innovative benefits could be tied to specific jobs
In the modern business environment, it is essential to tie innovative benefits to specific jobs. Although most people work for pay, many others have various reasons as to why they work. For instance, they get an opportunity to learn new skills and an opportunity to grow in the society. Some of the more tangible benefits employees can get include the provisions for retirement, health insurance and work schedules that are flexible (Foegen, 1973).
Employers must be creative enough to give their employees benefits that are innovative so as to motivate them. In practice, the type of benefits the employer gives the employees speaks a lot about their commitment. For instance, an employer who gives health and child benefits to their employees communicates that they value family life and the families of the employees. Such appreciation is key in tying down crucial employees to the business, facilitating its success. Going the extra mile to ensure that the employees are comfortable and feel appreciated is an essential strategy in promoting performance in the workplace.
Essentially, innovative benefits are crucial in tying employees to specific jobs. First, employers who use the innovative benefits strategy have the ability to increase the comfort and satisfaction of the employees (Foegen, 1973). This in turn leads to performance, improved productivity, high power of retention and reduces absenteeism. With this, employees get to appreciate the efforts of the employer and thus give their best efforts to ensure that the business succeeds. Because of the different roles that employees play, it is essential to structure these benefits depending on the type of task one plays in the industry.
Various jobs have different tasks and specifications. When deciding the type of innovative benefits to give employees, it is important that the employers analyze the job requirements of each employee and give them benefits that are relevant to the job. For instance, the benefits that working mothers are given in the workplace should, to some extent, differ from those that women without children are given. Giving all employees similar benefits without taking into account their respective priorities is an ineffective strategy which may backfire. The increased demands in life mean that it is difficult to get a single package that will suit all employees equally.
A good example of this strategy under practice is taking an example of working moms. To these mothers, they have to balance between job duties and family life duties of parenting (Foegen, 1973). Employers with such employees should ensure they do all their best to give them benefits that are relevant. Giving them flex time, for instance, will be crucial. Research shows that employees tend to be more productive when their mind is settled. Offering tailor-made benefits to employees will, therefore, be beneficial to the workplace as the employees will be more productive.
3. Critique the effectiveness of equity-based rewards systems versus those with more creative approaches
Equity-based reward systems as a means of compensation can motivate employees in the workplace (Altinkemer et al. 2009). Equity dictates that employees ought to think like owners of the businesses; that is, to be cost-conscious. Several development goals justify the equity-based approach of compensation. For instance, this approach is essential where there is a need to retain the services of employees and ensure their long-term commitment is a reflection of the company’s desire to succeed. Under this approach, it is important for the employer to ensure they provide meaningful jobs that can be matched by the strengths of the individual employees. This keeps people around, ensuring the business has continuity. The equity-based approach ensures employees are emotionally-tied to the success of the company. This can be achieved by ensuring the employees have a meaningful work to meet a set target. Employers should ensure they hire employees who share similar beliefs with them. Getting employees who can match the goals of the employer is essential in that their focus will be to supplement the employers. To reward the commitments of the employees, employers can take a bold step and give them some stock in the business. When this is the case, however, it is important that the employer should let them understand that their innate involvement is being rewarded, not being bought. There is debate as to whether this move is likely to give the employees the attitude of the owner. However, there is no doubt that employees who have stock in the organization are more likely to work hard in order to see the organization grow (Altinkemer et al. 2009).
Although equity-based approaches may lead to success in the organization, creative approaches have proved to be more efficient. Creative approaches, in most cases, take into account individual needs of the employees in determining the type of rewards that the employees should receive. Whereas the equity-based system involves one-size-fit-all mechanisms, creative approaches ensure the rewards are tailor-made to meet individual demands. One disadvantage of using the creative approach is the difficulty of satisfying all employees. Structuring benefits to suit employees effectively is a difficult task, and some of them are likely to complain as when their demands are not met. This is more so the case in big companies where it becomes difficult to meet each employee’s interest. However, equity-based approaches address this issue because employees have to cope with the set structure.
4. Discuss the key elements of integrating innovation into a traditional total rewards program
A total rewards program refers to both the monetary and non-monetary practice which employers provide to employees as an exchange with their efforts, talents and time. In practice, this involves integrating five elements that are key to effectively motivate, attract and retain in the workplace the necessary talent to achieve business results that are required.
Innovation can be integrated into a traditional total rewards program. For this to be the case, there are some elements that have to be used.
Compensation
The first element regards o compensation. Under this element, employers pay employees for the services that they render to the business. Skill, effort and time are very crucial in determining what the compensation should look like. This element comprises of four sections. Fixed compensation/base pay refers to the non-discretionary payment entitled to all employees. This pay does not vary depending on the results an employee achieves in the workplace. The pay history, philosophy and structure of the organization determine what the basic pay should be. Organizations also have the variable pay (pay at risk). This changes depending on the employee’s performance and the results they achieve (Quintero, 2002). It is often re-earned in every performance period. Short-term incentives are designed to reward performance, normally less than one year. Long-term incentives are designed to reward the performance of employees for a period of more than one year. This may include restricted stock, shares, performance, stock options and cash.
Benefits
Benefits present a key element of integrating innovation into a traditional rewards program. As a form of a rewards program, benefits refer to the programs that an employer may use to supplement what employees receive as cash compensation. Essentially, such programs seek to protect employees and their families from risks. Benefits may be in the form of social insurance, group insurance and payments for time that employees never worked. Social insurance involves aspects such as social security, occupational disability and unemployment. Group insurance may cover aspects such as mental health, dental problems and retirements.
Work-life balance
The third element regards work-life balance. Every organization has programs and policies which help employees to succeed, both at home and at work. The major categories under this element include workplace flexibility, community involvement and caring for the dependents of the employees (Quintero, 2002).
Performance and recognition
This is an essential component of the success of an organization. It involves aligning individual performances with those of the organization. Successful organizations have performance planning and performance feedback. Recognition involves giving the actions and performance of employees some sort of special attention. This is essential as it gives employees the psychological boost required to work hard. This can be effected by reinforcing certain behaviors, for instance, accomplishments that are extra-ordinary. Recognition also ensures to reinforce performance improvement and provides immediate feedback of the employee’s activities.
Career Opportunities
This happens where organizations plan to advance the careers of employees. This may involve advancing them to a position that requires more responsibility. By doing this internally, the organization ensures that its talented employees get to work in positions that match their skills. This is essential as they get to deliver their value to the organization.
5. Recommend a process that optimizes an employee-based suggestion program to continually refresh the total rewards of the organization.
There are several potential processes that can optimize programs to continually refresh rewards in an organization. In choosing the best process, it is important to take into consideration the business market that would offer significant opportunities for growth (Galloway, 2001). Such programs should ensure that employees get a chance to become organizational leaders as they ought to develop in their leadership roles from the organization. It is also crucial to consider recurring revenues. The role that technology has played in the development of markets and organizations cannot be underrated. In designing a process, it is essential to take this into consideration.
Different organizations may adopt different processes, depending on their structure, history and philosophy (Galloway, 2001). However, the process should have some basic universality. It should aim not only to attract, but also to retain employees who are talented and motivated. Such employees should also be committed to the aspirations of the organization and help the organization win in the marketplaces. Although it is difficult to design such processes, focus should be based on the ability to add value to the customers. This can be achieved through making available a range of cost-effective, mission-critical and computerized transaction processes on a global basis.
The process I would recommend should include various aspects that are beneficial. Essentially, it should involve some form of commitment to provide services that are world-class. This is the only way that an organization can attract more clients. It will also focus on retaining outstanding employees. This is essential as it promotes organizational success. Employees should be encouraged to have a commitment to promote product leadership. Such programs should ensure they meet the market-share leadership. Without this, the organization will be in a difficult situation. It is also important to ensure that such processes are committed to maintaining high-level financial controls.
Conclusion
Employees are the most important assets of any working organizations and they should therefore be handled with utmost care. It is up to the employer to continuously come up with adequate strategies to keep the employees satisfied at motivated at the work place. This can be done through employee’s benefits and rewards. However, times have changed the traditional rewards and benefits that were used to appease employees may not necessarily work anymore. Innovations are required when it comes to designing employees reward systems and benefits so that they are consistent with employee’s current desires and so that they effectively perform their roles and function, whim it keep the employee satisfied and motivated.
References
Altinkemer, K., & Ozcelik, Y. (2009). Cash-back rewards versus equity-based electronic loyalty programs in e-commerce. Information Systems and e-Business Management, 7(1), 39-55.
Foegen, J. H. (1973). The High Cost of Innovative Employee Benefits. California management review, 15(3), 100-104.
Galbraith, C. S., & Merrill, G. B. (1991). The effect of compensation program and structure on sub competitive strategy: A study of technology-intensive firms. Strategic Management Journal, 12(5), 353-370.
Galloway, P. (2001). Innovative Benefits in a Small Consulting Firm. Leadership and Management in Engineering, 1(1), 45.
Quintero, J. R. (2002). Achieve cost benefits with innovative care management. Nursing Management (Springhouse), 33(4), 35-43.
