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Total Rewards Systems

Total Rewards System
Walter Clay
University of Phoenix

MGM 570 Employee Motivation and Compensation

Mr. Foy Wallace

13 November 2006

Introduction
Motivating the individuals that work for you is one of the most important functions that you will have as a manager. (People Skills, 2006) Simply stated getting employees to do the things they were hired to do is probably the biggest challenge a manager will face. You will always have individuals who will work their hardest for the rewards the company provides them. On the other end there are some employees that you can never keep happy not matter what rewards you give them. In this paper, I will discuss the concept of total rewards using the five elements total reward system. I will also discuss the impact of rewards systems on the organizational performance of companies in the Information Technology (IT) industry. Then I will look at the importance of direct financial rewards in comparison to other elements of the total rewards system for the IT industry. Lastly, I will look at the compensation and motivation practices, which are of particular importance in the IT industry.
Total Rewards Concept
The total rewards system concept is simply about the financial and non-financial benefits given to employees in trade for their services to the company. The employees will give the company their time, their abilities and efforts to support the company in return for the benefits the company provides. Total rewards involve the combination of five essential elements needed to motivate, attract and retain employees needed to accomplish the organizations goals. They are:
• Employee Compensation
• Employee Benefits
• Employee Work-life Balance
• Employee Performance and Recognition
• Employee Development and Career Opportunities
Total rewards is the approach of using the five items to develop an employee benefit package designed to achieve optimal employee motivation. The key to the...