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| Total Rewards journey in terms of philosophy and implementation has been undergoing a constant change over the years. The desired end result of Total Rewards approach is: a satisfied, engaged and productive group of employees who, in turn, create the desired business performance and results. The aim of Total Rewards has remained the same over the years but the levers that are being identified under Total Rewards and their importance has been shifting year on year. |
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| Definition & Levers of Total Rewards |
| Transactional Levers |
Total
Compensation |
Pay provided by the employer to an employee for services rendered includes both fixed and variable pay tied to levels of performance |
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| Benefits |
Program used to supplement cash compensation, that employees receive. Provides security for employees and their families |
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| Relational Levers |
| Work Life |
A specific set of organizational practices, policies, programs supporting employees achieve success at work and home |
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Performance
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Recognition |
Performance: The alignment of organizational, team and individual efforts towards achieving goals and organization success
Recognition: Acknowledging employees actions, efforts, behaviour that meet an intrinsic psychological need for appreciation efforts and reinforce certain behaviours |
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Career
Development |
Learning experiences designed to enhance employees applied skills and competencies to advance their career goals. Aim to engage employees and deploy of career opportunities internally |
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| The Total Rewards journey can be clearly demarcated into 3 stages: |
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| Stage 1 : Total Rewards = Total Compensation |
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Led to debate that transactional components alone cannot achieve the desired end result. |
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The conclusion was that Total Compensation is an important and necessary lever of Total Rewards but is not a sufficient lever for attracting, retaining and motivating employees. |
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| Stage 2 : Integrated Model of Total Rewards |
| Total Rewards refers to the transactional and relational levers provided to employees in exchange of their time, talents, efforts and results. The key levers in the integrated model are stated below: |
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| Stage 3 : Unique Integrated Model of Total Rewards |
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Total Rewards refers to the unique and propriety way in which organizations use the levers to attract, retain and motivate employees. This model abandons the ‘one size fits all’ approach and focuses on providing innovative and customized levers of Total Rewards. |
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Not a refutation of the earlier models but it is a refinement and elaboration of the earlier models. The new model seeks to better elaborate all the levers that drive attraction, retention and motivation in a manner that best fits not only the workforce but customizes it to individuals within a workforce. |
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Organizations irrespective of their size are adopting this approach to keep their flock together. Hence some of the steps that organizations are taking towards creating a unique Total Rewards experience range from broad based organization wide practices to customized individual practices. |
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| A Snapshot of Innovative and Unique Total Reward Practices |
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3G: Providing an ATM centre, gaming arcades, multicuisine restaurants, even fitness and beauty centres for employees to unwind within the office premises, offer higher education programmes with tie-ups with premier institutions |
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Eon Technologies: Tele-commuting, flexi-time and retreats focused on team building |
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SAP: Provide everyone with an opportunity to handle an international assignment, offer wide range of global projects |
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Tesco: Maternity, paternity leave, also adoption leave. In house learning centre, employees can register for a retail certification course from Indian Institute of Management |
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Xansa: Focuses on facilities for women - crèche facilities, has a policy of no graveyard shifts (Xansa caters to the UK market), facility for yoga classes, psychological counseling sessions, regular medical check-ups, benefits around flexi-time, sabbaticals and adoption leave |
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Infosys: Provide rigorous training programmes which involve several levels of certification, ensure that the campus environment is collegial, control the ratio of managers to employees |
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