Final Total Rewards Management Report

Total Rewards Design and Communication

Tonya Palmer

Dr. Gary Lorenzo Wash

Total Rewards

February 3rd, 2019

Total Rewards Design and Communication

The Total Rewards Design Process

For many organizations, the purpose of the sales force compensation plan is to evaluate the bonuses, commission that will maximize sales, and the mix of salary. When designing the compensation plan for the sales people, considerations such as mix between incentive and salary, measures of performance, level of pay, and performance-payout relationships must be made (Boxall & Purcell, 2011). These are some of the basic considerations that need to be made by every organization with an aim of generating more sales within a specified period of time. A company that relies of making sales needs to fully invest in the sale force as they are core to the overall business strategy. One way of doing so entails putting in place a total rewards program that not only meets the trends in the labor market but also motivates the sales personnel. It is imperative to point out that sales personnel must be motivated and inspired so that they can meet the stipulated goals (Boxall & Purcell, 2011). A company needs to have a total rewards brand that sales force can identify with. In this regard, a total rewards design must consider various factors that meet the interests and desires of the sales people in a bid to drive the overall strategies for an organization.

Unilever is a global brand that has been designing the total rewards program with the aim of attracting, motivating, and rewarding the sales personnel. The company develops and distributes various products in the global market meaning a sales force is important in promoting the brand. The company has a total rewards program which ensures that is supportive in a bid to achieve the desired targets of the human resources professionals and the company in general (Chow, 2012). The total rewards program for the sales people put in place by the company has the following aspects: compensation, enhanced flexibility, benefits, work-life balance, rewards and recognition, and opportunities for career progression. Compensation refers to the fixed and variable pays that are coupled with short-term and long-term incentives. Enhanced flexibility refers to flexible working hours offered to the sales force. Benefits encompass monetary payments such as commissions and medical benefits (Chow, 2012). Work-life balance refers to supporting the workers by making sure they are able to balance between work and life’s responsibilities. Rewards and recognition are offered to performing sales people as a way of motivating them. Finally, the company offers opportunities for career progression to the sales people that are deemed hardworking and fully integrated into the company’s culture.

Unilever has been offering the total rewards program with the aim of attracting, retaining, and motivating the sales people. The company invests in human resources as they are core in driving its global strategy especially when it comes to accessing more customers at a global scale. The sales force is core to this strategy meaning that it must be motivated into meeting the set goals. The total rewards program is deemed one of the best in the industry as it is centered on the sales personnel who are then expected to drive the strategy of the organization.

Considerations to be made when designing a total rewards program

When designing a total rewards program for the sales people, there are three major considerations that need to be made as follows. One, they need to consider the level of pay which refers to the amount of money that will be paid to a sales person over the course of the year. In most cases, this needs to be viewed as a range as bonuses or commissions will vary (Boxall & Purcell, 2011). In order to motivate the sales personnel, it is imperative that the level of pay meets the expectations of the sales force. Additionally, the level of pay offered should be competitive as a measure of retaining the sales force. For most organizations, sales department has higher than average turnover rates meaning retention should be targeted by the level of pay.

Additionally, the method for rewarding the sales people need to be considered. As was earlier highlighted, the sales personnel must be rewarded and recognized for their efforts so as to motivate and retain them. In order for this to be done, an organization needs to put in place measures for evaluating performance so that sales personnel that deserve rewards and recognition can be known (Boxall & Purcell, 2011). The rewards offered must meet the expectations of the recipients so as to have a lasting impact. For instance, not all sales people would want to receive monetary rewards some would prefer a paid vacation. In this regard, the methods for rewarding should be diverse and in line with the overall mission and objectives of the organization.

Finally, performance-payout relationship need to be considered which refers to a pay strategy where individual or organizational performance have an influence on the amount of pay or bonuses given to the employees. In this case, a company will need to ensure that the compensation plan is sustainable and does not put the company’s financial performance in problems. The pay and compensation offered to the sales people must be aligned with individual and organizational performance. Notably, this strategy should be communicated to the sales personnel so that they can perform knowing that benefits received are directly influenced by their performance as well as organizational performance. Actually, this is the model that is utilized by majority of organizations as a way of aligning individual performance to organizational performance.

Communicating Total Rewards to Executives, Managers, and Workers

If one asks an employee how much they are paid, majority will tell about the salaries they receive. Notably, though salaries are a major part of the compensation there are other benefits and incentives that are received by workers. As a business owner, one knows how much goes to workers and they will never know it unless they are told. The total rewards need to be communicated to executives, managers, and workers. In the modern era, communication can even be automatic where statements are automated and all level of workers given an access. The statements should break down the plans and present them in a manner that is easy to understand.

In communicating a total rewards program to business executives, there are aspects that need to be looked into. A business owner needs to communicate the plans to the business executives in a manner that exhausts all of them. As earlier highlighted, there are executives who may not be aware of incentives and benefits hence may have the wrong perceptions and attitudes towards the business owner. Additionally, in the event of any necessary changes, the executives need to be consulted and involved in the overall decision-making process as a way of making them feel as part and parcel of the organization (Gubbala & Battu, 2012). Further, even the slightest details of the plan should be communicated to the executives as they may have an impact on some or all of the executives. Finally, it is imperative to note that when communicating the plan it is good practice when the business owner outlines the processes and procedures for arriving at the plans.

Managers also need to know everything about the compensation plan. Though managers and executives have better access to company information than low ranking workers, there are certain aspects of the compensation plans they may not be familiar with. In this respect, communicating the plan to the managers should mainly about covering details that managers may be unaware of. For instance, they may not be aware of how the organization arrives at plans offered. Such information should be communicated in a manner that addresses all questions and queries.

Finally, all the plans for all categories of employees need to be communicated to the workers. Employees are in most cases not fully aware of benefits and incentives meaning that it is the duty of the business owner to communicate them in an effective manner. Actually, this should be done during hiring as a method for motivating the employees. When being hired a number of workers tend to perceive salaries as the only compensation they will be getting from the employer (Gubbala & Battu, 2012). However, this is actually not the case hence they should be fully informed about it by the employer.

Communicating to executives, managers, and workers about the total rewards program has benefits such as making them feel valued and appreciated hence motivating them. They tend to feel that their welfare is taken care for. They also feel a sense of belonging which makes them develop willingness of taking part in various undertakings of the organization without being compelled. In essence, a business owner should ensure that all aspects of the total rewards program are communicated to all high ranking and low ranking employees.

Total Rewards Branding and its Importance

Total rewards branding refers to creating and communicating the uniqueness of a total rewards program to all employees. Majority of organizations tend to create the brand that informs the workers what is expected from them and what they are likely to get in return (Gubbala & Battu, 2012). The branding is important as it ensures that all workers are already aware of various elements of the total rewards programs and how they impact their overall compensation plan. The brand can even be used to attract top talents hence impacting the overall organizational performance positively. It is important to note that the human resources have a role to play in branding the total rewards program. First, the department needs to closely involve the workers in promoting the brand and making them aware of all benefits and plans. More so, in the event of any changes to the brand that should also be fully communicated to the workers effectively. The human resources department should keep all workers close and also should ensure that they perform in line with the mission and objectives of the brand. Finally, the department needs to put in place performance measurement and evaluation methods that will help enable the company attain an effective performance-payout relationship.

References

Boxall, P., & Purcell, J. (2011). Strategy and Human Resource Management. New York, NY: Palgrave Macmillan.

Chow, H. (2012). The roles of implementation and organizational culture in the HR-performance link. he International Journal of Human Resource Management 23(15), 3114-3132.

Gubbala, M., & Battu, N. (2012). Employee Welfare In Industry: Industrial Workers Perspective. London, UK: Lap Lambert Academic Publishing.