Total Reward Strategy Components

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Employees Incentives

Aside from regular wages, which are usually charged on a monthly basis, some businesses have devised additional ways for employees to earn more depending on their short or long-term success. Various businesses have devised methods to reward extra efforts by workers in the form of commission incentives for short-term success such as exceeding a specified number of units achieved per week or rewarding sales efforts by setting a deadline that, when met, results in some set compensation being offered to employees (WorldatWork, 2015). This type of remuneration has been adopted by electronic businesses, especially those dealing with cell phones. They have set a particular number of pieces that the distributors should supply in a given area in a given time (San, Theen, & Heng, 2012). If the supplier manages to convince the customers and supply more than the set target, then commissions are granted. If the suppliers manage to keep their performances at the high levels for a long time, say a year, then the company promotes the individuals by elevating their pay grade or by elevation of status in the company. Rewards, however, are strictly based on performance.


Companies are also providing more to their employees than the fundamental benefits that are a must as stipulated by the labor authorities. Firms have learnt that the employee's commitment to the firm spells a good fortune for the company's future and dedication of employees to the course of the company increases the company output since the commitment is replicated regarding good performance by employees. Additional benefits such as holiday remunerations break when situations arise like the ill-health permission and grief period sabbatical to ensure that employees are given time to recover from traumas and get back to work when they are fully fit and committed to the firm. For example, some private schools ensure that teachers are given enough time and permission to handle their problems to ensure they do not affect the services they offer to students with their personal issues. This ensures good performance in the schools.

Work-Life balance

Despite the fact that companies operate solely for profits, they also have to consider some certain facts about human labor that recreation promotes efficiency regarding what the human labor offer to the company's course. Therefore, it is necessary for the company to change their work premise lay-outs and atmosphere occasionally. This boosts the employee's morale and reduces boredom. The company should support recreational projects such as road trips and some other projects like swimming pools, gaming arenas, and entertainment areas to ensure the employees get some places to regain their energy for a short time before they get back behind the desk.

For example, some companies have gym facility for fitness and drinks avenues for the employee's recreational short visits during the day.

Performance recognition

Monitoring the employee output provides an efficient way by which companies reward their employees. The employees work as a team or individually. It is important for the company to appreciate the efforts made by a group of employees that join hands for a particular task and reward them all for their coordination and teamwork. This serves as an example to all other employees to come together for the same course for the company. A good example is the annual awards for the best media shows or best movies in the entertainment industry (Jiang, Xiao, Qi, & Xiao, 2009).

Career development

Employees have to be skilled to carry out their duties in the firm efficiently. The company helps employees in various ways like by funding further studies for employees, research projects, and allowing further training for employees to enable them to attain the required levels of expertise and serve the company. The company may also rotate roles in various departments to enable employees to have multiple skills in different areas of operation, and this adapts and prepares employees for any task that would be assigned to them in the future. This ensures that the employees get better and better with time (WorldatWork, 2015). For example, an employee in the bakery would be trained on how to improve on her sales ability.



Jiang, Z., Xiao, Q., Qi, H., & Xiao, L. (2009). Total reward strategy: A human resources management strategy going with the trend of the times. International Journal of Business and management, 4(11), 177.

San, O., Theen, Y., & Heng, T. (2012). The reward strategy and performance measurement (evidence from Malaysian insurance companies). International Journal of Business, Humanities and Technology, 2(1), 211-223.

WorldatWork. (2015). The Worldatwork Handbook of Compensation, Benefits and Total Rewards: A Comprehensive Guide for Hr Professionals. Wiley.

December 15, 2022


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