Increasing Organizational effectiveness through Total Reward Strategy during pandemics

What is a Total reward?

"Total rewards is the combination of benefits, compensation and rewards that employees receive from the organizations they are working for. This can include wages and bonuses as well as recognition, workplace flexibility and career opportunities" (Gartner, 2022b).

Sometimes, this Total rewards may also refer to the function or department within HR that handles compensation and benefits, or the combined intrinsic and extrinsic rewards (or value) that an employee perceives (Jiang et al., 2009).

Figure: Total rewards. 

Source: Executive coaching connection, (2020)

What is Total Reward Strategy?

A total rewards strategy is a system implemented by a business that provides monetary, beneficial and developmental rewards to employees who achieve specific business goals. The strategy combines compensation and benefits with personal growth opportunities inside a motivated work environment (Jiang et al., 2009).

What has done by organizations to reward employees during pandemics?

Due to the coronavirus, almost all employees are facing increased levels of stress. Some organizations are putting themselves at risk to continue the operations while providing rewards to help employees through this difficult time. Some of the actions practiced by organizations are providing mental well-being, Hazard pay, Medical benefits, Child care support services and Transportation services (Gartner, 2022a).

5 Ways to Increase the effectiveness of the Total Rewards Programs during the crisis (Executive coaching connections, 2020)

1. With the crisis, companies cannot reduce the work force instantly and instead if the management can try for options such as offering time off without pays, rotating the unpaid time offs among the employee populations or let the employees to utilize their leave with reduced salary will help both the employees and company to manage during pandemic. Also the top management can try for temporary salary reductions till the situation becomes normal.

2. Leverage Employee Benefit Plans such as Employee Assistance Plans which provide mental health assistance for the employees to get released from stress and uncertainty, Free Credit Counselling which provide quality financial education and coaching for people to improve their lives and financial well-being, Voluntary, Unpaid Vacation can be activated within companies.

3. Promote Work-Life Balance Programs such as Flexible Hours and Alternative Work Schedules, Employee Well-Being through a series of wellness exercises and models that focus more on health, spirit, mind and heart of employees and Extended Leave of Absence which offer extended paid and unpaid leave in the event of a quarantine or caring for an ill family member.

4. Conducting Scheduled or “Just-in-Time” Developmental Discussions

5. Stay Connected and Recognize Strong or Essential Performance through Frequent Face-to-Face Communications, Spot Rewards, and Say “Thank You” to show the instant gratitude

Through these simple tips, the organizations can achieve more in future.

Additional reading: 

A Comprehensive Guide To Total Rewards (And How to Master It) 

What is a Total Rewards Strategy? A Practical Guide

 

YouTube Videos

 

References

Executive coaching connections, (2020). 5 Ways To Increase The Effectiveness Of Your Total Rewards Programs During a Crisis. Executive coaching connections. [Online] Available at: https://www.executivecoachingconnections.com/discover/5-ways-increase-effectiveness-your-total-rewards-programs-during-crisis [Accessed on: 21^st August, 2022].

Gartner, (2022a). Increasing Rewards in Response to COVID-19. Gartner. [Online] Available at: https://www.gartner.com/en/human-resources/trends/increasing-rewards-in-response-to-covid-19 [Accessed on 21^st August, 2022].

Gartner, (2022b). Total Rewards. Gartner. [Online] Available at: https://www.gartner.com/en/human-resources/glossary/total-rewards#:~:text=Total%20rewards%20is%20the%20combination,workplace%20flexibility%20and%20career%20opportunities.  [Accessed on 21^st August, 2022].

Jiang, Z., Xiao, Q., Qi, H. and 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), pp.177-183 [Online] Available at: https://pdfs.semanticscholar.org/c266/b189cee593b31083c617e662bf1ad2c5b009.pdf [Accessed on 21^st August, 2022].