MHR 523 Chapter 11: Chapter 11
18 Mar 2017
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Document Summary
The strategic importance of total employment rewards: total employment rewards refer to an integrated package of all rewards gained by employees arising from their employment. These rewards encompass everything that employees value in the employment relationship: the total rewards approach has arisen from the changing business environment of the last several decades. This approach considers individual reward components as part of an integrated whole to determine the best mix of rewards that are aligned with business strategy and that provide employee value. Alignment is the extent to which rewards support outcomes that are important to achieving the organization"s strategic objectives: the five components of total rewards. Compensation- includes direct financial payments in the form of wages, salaries, commissions, bonuses. Benefits- includes indirect payments in the form of financial benefits (insurance, vacations) Work-life programs- relates to programs that help employees for their jobs effectively, like flexible scheduling, telecommuting childcare etc. Performance and recognition- includes pay-for-performance and recognition programs.
