Total Reward System: Advantages, Disadvantages, and Examples

Managing
Human
Resources

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION ...............................................................................................................................3
REFRENCES...................................................................................................................................4

INTRODUCTION
Total reward system is considered as all efforts which an employer can adopting for
recruiting, retaining and motivating employees (Abbasi and Rana, 2012). This will include five
elements i.e. benefits, professional development, compensation, work life balance and
recognition. Organization selected for this assignment is Marks and Spencer which is a public
limited company operating in retail sector. It is founded by Michael Marks and Thomas Spencer
in year 1884 at London, United Kingdom. It is operating at the worldwide level. Topics include
in this report are overview, advantages, disadvantage, example, budget concern and internal and
external factors related to total reward system.
MAIN BODY
 Total reward system is defined as a efforts which are conducted by a company's
management in order to retain, recruit and motivate their employees. There are main five
elements of respective reward system i.e. recognition, work life balance, professional
development, benefits and compensation which help in retaining as well as motivating
employees effectively (What Are the Elements of a Total Rewards System?, 2019). This
will include both financial as well as non financial reward that motivate staffs to
accomplish their work effectively so that company attain their goal. In respect of Marks
and Spencer, by adopting this reward system they able to resolve their issues related to
downturn in productivity, customer satisfaction and profitability.
 Total reward system is one of the effective reward system as it help Marks and Spencer in
gaining various advantages such as it help management in enhancing employees
engagement at the workplace. Along with this, by adopting this reward system respective
company able to increase staff retention as well as it will also enhance performance of the
employees that directly lead increase in quality of work. This will also help in conducting
controllable expenses through which firm able to predict their expenses on each and
every employees (Holston and Kleiner, 2017). These are the main benefits or advantages
which are gain by Marks and Spencer by adopting total reward system.
 By adopting as well as implementing total reward system at Marks and Spencer,
management able to address specific motivating need of employees because it will help
in focusing both financial as well as non financial benefits. In respect of financial benefits
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