Total Reward System Woodrow Rowell

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Total Reward System

Woodrow Rowell

Total Reward System

Human beings basically love rewards and, according to research, when human beings get rewards, there are special pathways in their brains activated which as a result motivate them to seek out for more rewards. Organizations are composed of people and, these people define organizational behavior since the organization itself cannot behave but the people in it. Thus, employees need to be motivated in order for them to do what the firm needs them to do. People are motivated in different ways considering that every individual has a unique perception of what entices them. Staff motivation is crucial, and it is among the key contributing factors of a successful organization which is why the management should strive to understand the different things that will motivate their employees at work; therefore, the reward system is important for motivating workers (Hoole & Hotz, 2016). This paper will discuss the critical components for the total reward program which, in return increases employee interaction, production as well as their morale.

The total reward program has existed for the longest time possible and managements today are trying to put expound more on the meaning of the word reward using both tangible and intangible features in rewarding their staff members. Among the tangible features organizations are using today includes financial stability while intangible features, on the other hand, include employee luxuries and rewards for imminent damages. Managers are using the Total Reward System as their current management approach.

.Total reward system results are commendable on both individual and organizational performance since there is improved quality in employee job satisfaction, their loyalty as well as their motivation and morale. According to Dontigney (2017), a total reward system of an organization must include continuous efforts that a manager can use to motivate, recruit as well as retain employees. A total reward system must comprise of these five elements, benefits, compensation, and work and life balance and career growth and recognition.

With career development and recognition, there should be a wide range of improvement opportunities such as training and mentoring (Holston & Kleiner, 2017). A good example is that an organization may choose to sponsor all employees to have access to the respective online course. Recognition, on the other hand, ranges from acknowledging the work of an individual formally especially if it is well done by implementing monthly or yearly programs. Work and life balance, on the other hand, includes giving workers a chance to live a life even after work and that can include allowing them to leave early to that they can attend to their after-work events. Compensation can be described as the different ways in which workers earn their wages from the organization and it may consist of base salary or even hourly compensations. Compensation can also include profit-sharing with the workers and even bonuses. Benefits, on the other hand, can be defined as compulsory programs and employer options. With compulsory programs includes social security and employer options include pension programs.

Basically, total reward programs play an important role in the success of an organization. When employees are happy with a company’s reward systems their output or production, motivation, as well as interaction, improves significantly. Thus, managers should strive to learn ways in which they can satisfy their employees through their reward system considering that there are commendable rewards towards that approach.


Eric Dontigney, 26 September 2017, what are the elements of a total rewards system, retrieved from

Hoole, C., & Hotz, G. (2016). The impact of a total reward system of work engagement. SA Journal of Industrial Psychology42(1), 1-14.

Holston, C., & Kleiner, B. (2017). Excellence In Reward Systems. Global Education Journal2017(1).


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