Total Rewards Essay

1074 Words5 Pages
Total Rewards Question: Describe each of the top five (5) advantages of a total rewards approach. The success of an organizations workplace will depend on managing costs and growth to address its business needs. Total rewards can help meet the needs and wants of today’s employees, and at the same time refocuses an organizations rewards system away from just cash and stocks (WorldatWork, 2007). In organization, there are five advantages of having a total rewards approach which are increased flexibility, improved recruitment and retention, reduced labor costs and cost of turnover, heightened visibility in a tight labor market, and enhanced profitability (WorldatWork, 2007). A total rewards approach allows an organization to have the flexibility to remove itself from the one-size-fits-all mentality and offer employees a mixture of reward packages that meet the employee’s needs. This is extremely important in today’s workforce because of the diversity among groups of employees. This flexibility benefits both the employer and employee because motivating employees through total rewards increases the organizations chances of profits in the bottom line. Another advantage is the ability to recruit and retain employees within the workforce. The primary way to address an issue in recruiting and retaining a quality workforce is to develop a total rewards package that is inviting. The total rewards approach in this situation helps design a work experience for the employee that competitors in the market place may not be able to match. Thirdly, the organization can see a reduction in labor costs due to the fact that the amount of manpower and turnover cost associated with losing an employee may far outweigh the simple implementation of a quality total rewards program. The fourth advantage is that organizations are realizing a tight labor market and low
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