Total Rewards Essay

1049 WordsJul 31, 20145 Pages
Designing a Total Rewards Strategy In developing a total rewards strategy, we must consider 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. HR will work with senior managers to refine the details of this plan with market conditions and organizational strategy as a guide to which specific components we include in the final total rewards package. The plan for Motors and More Inc. must the weakness identified in the SWOT analysis to include non-competitive pay and benefits, intense competition, and high turnover rate. We will focus on six components of the total rewards package which include base pay, promotions, incentives, benefits, personal and professional development, and work environment. The end result of this plan will be the right mix of benefits that support Motors and More Ink’s strategic vision. A critical decision on the rewards strategy it weather to lead, lag, or meet the market. Table 1 in the appendix, illustrates the advantages and disadvantages of each strategy. With Motors and More Inc.’s current situation of a high turnover rate, intense competition, and the need for rapid growth a mixed rewards strategy is necessary. This mixed strategy will identify critical positions as mentioned above in the staffing strategy. Because of their importance to the organizations strategy, benefits for these key positions should lead the market. This will provide the ability to attract the best talents to these key positions, help with long-term retention, and build a perception of being an employer of choice. All other positions in the organization will at a minimum match the market for pay and benefits. This strategy will help keep cost for these positions in line with competition and provides the ability, during good

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