Managing Human Resources: Total Reward System and Its Impact on Employee Retention and Engagement

This report focuses on the management of human resources and the various aspects of HRM, with an emphasis on the total reward system and its impact on employee retention and engagement. The report evaluates the advantages and disadvantages of different reward models and their relative effectiveness in retaining high-performance employees.

MANAGING HUMAN
RESOURCE

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource is the department which is concern for hiring the potential candidate
who can perform their job role in an well defined manner by using their skills and comp entices
in their given job role. This report is based on management of human resource and also emphasis
on the various aspects of HRM. It is crucial department which manage the whole workforce and
influence them for the particular job role to be performed in the specific manner. Morrisons is
the chosen organisation for this report, It is the leading chain of supermarket in the united
kingdom and it is headquartered is in Bradford, West Yorkshine, England (Lal, 2020). The
company is founded by William Morrison in 1899. This essay will cover the key elements of
total reward strategy with the current business goals. Moreover, It will discuss the different types
of reward model and evaluate the relative advantage and disadvantage of each of them.
MAIN BODY
Human resource is the department which is emphasising on understanding the need and
wants of their potential employees so that they can perform their job role in an systematic
manner. Giving advance training to the employees also helps in enhancing their abilities and
skills by which they can effectively approach in the right direction and also can understand the
competitive edges in the business environment. Every organisation is focuses on providing the
fair compensation to the employees so that they can motivate towards their given task to be
complete in the well defined manner. When the organisation is giving fair compensation to each
employees in will also helps in retaining high performance working with the aim of having
potential candidate within the operations.
Various rewards strategy is based upon the market scenario and also concern and based
on the needs and requirements of the employees. This reward system includes the variable and
base pay as the employees is expecting according to the market and their working in an
organisation (Afroni, 2020). Effective reward system is the main consideration and based upon
the implementation of the various rewards model for an organisation. Advantage for this
strategy is helps in influencing their employees towards their desired goals and targets and also
helps in attaining the personal and professional development. But on other hand, disadvantage
is It will leads to get the dissatisfaction among the employees if they do not get the deserving
rewards for this given job role. By this, the employees can be retain to their brand and work and
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retain in the organisation who are loyal to the firm and act as the asset for the company. This
system helps in eliminating the basined from the workplace and also helps in establishing the
integrity among the employees. Biased decision could leads to affects the productivity and
profitability of the company. So it is considerable to have the effective reward system. Th other
aspect of the reward system to have the various benefits includes pension for the employees that
can helps them after their retirement and the main advantage of this strategy it will act as the
backup plan for the individuals. On other hand, disadvantage of giving pension is that it will
leads to increase the overall cost to the company. By doing certain study that such types of
reward strategy helps in gaining the effectiveness in the organisation and also can satisfy the
needs and wants of their potential employees (Dierkes and Coppock, 2017). It also leads to the
development of the employees to work hard and getting monetary rewards is helpful meeting the
need of the potential employees. It also helps in fulfilling the development of their skills and
knowledge by which they can get the career enhancement in contributing to the growth and
development of the company.
Morrisons is emphasising on making the effective reward system and also focuses on
getting the best use of this system so that the business can be aligned with the specific goals and
objectives. Meeting monetary needs and wants of their potential employees make them efficient
in their operations. This reward also helps the Morrisons to focuses on the available
opportunities for their betterment in the operations.
In context to Morrisons, Human resource management focuses on giving the fair and
better decision-making related to the reward system so that they can improve their sufficient and
effective compensation as per their skills and capabilities. They are also emphasising on the
system so that they can increase the overall cost of company ad also can implement such system
which can affect the overall productive and the revenue of the company. It is the key of success
to have the best use of their resources so that they can effectively react to their set targets and
objectives (Ahmad and et.al, 2020). This shows that what are other aspects which is bing offered
by the Morrisons other than than money and services and also shows the culture of the
workplaces which is being followed by the organisation for their employees. Morrisons is using
this system so that employees can have the great skills and abilities by using such type of system
with the aim of retaining the high working employees and can be considered as the assets for the
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company. In the current business scenario, the main focus of the company for the competitor
advantage so that they can sustain in the large market.
Total reward model is the aspect which is concerned for providing the compensation to
their employees so that they can be satisfied and influence them selves to get effectiveness in
their operations. It is necessary for the company to evaluate the needs and wants of their
potential employees in relation to the reward so that they can retain within the organisation for a
long period of time (Pinto and Patanakul, 2017). They work effectively by making best sue of
their skills and abilities and also considered as the assets to the organisation. It is necessary for
the organisation to have the effective reward system and specific model so that they can
contribute in the growth and development of the employees as well the organisation in achieving
the set targets and objectives. Total compensation model and total reward system have the
different benefits so it can be helpful for the firm. Total compensation is defined as the benefits
get from the wages and salary or beyond that so it an be suggested as the package for the
employees in the company.
It is the main resource for the company that is available for their employees and can be
used by the firm which is completely depends up on the nature of the rewards. It includes certain
types of strategy so that they can benefits to the employee and the employer both. Such resources
an be effectively used by the company in order to retain and sustain the potential candidate
within the operations. There are different types of resources which can be effectively utilised in
the motivation of the workforce. Bonus, basic salary, various benefits such as gym
memberships, travel packages, health insurance and retirement benefits are the certain
components which comes under total compensation (Luburić, 2019). These are different types
of companies an all these components are depends upon the size and the nature of the
organisation so that they can have the different types of rewards according to their earning and
revenue.
In relation to Morrisons, they can have the betterment in the operations so that they can
effectively manage all the operations and tasks by which they can move towards higher
development and growth. In case of total reward system, It is evaluated that it is the effective
reward system which is having the numerous elements that is necessary for the look out of the
employees in context to work experience and benefits and their compensation. Asda is using
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such model so that they can meet the needs and wants of their potential employees by which they
can be retain their organisation. Effective reward system helps in getting the effectiveness and
also boast the overall working of the company. There are various components of the total
rewards system which are compensation, It is the monetary value which is given to the
employees in return of their given job role and the type of work so that they can have the
effectiveness in the organisation (Golwalkar, 2019). In every business venture, every employees
is having the certain expectations that they will be rewarded with the specific reward of their
performance and efforts. Employees are the foundation of every organisation and they are
considered as the integral part of the company and they understand the importance of the
providing fair compensation to the employees so that they can retain to their brand for a longer
period of time.
Benefits, There are different types of insurance like dental and health which comes under
employees benefits. There are certain types of benefits which is being provided to the employer
and the employees in relation to the increment of their insurance plan that is given by the
organisation so that they can have the effectiveness in the operations. There are certain ways by
which by which the employees can get the offers such as tour packages, incentives, gym
membership or other health related schemes. this helps in keeping the employee satisfy and
motivated so that they can be loyal towards their job role. these are the aspect which shows the
gesture of care towards the employees and they can be easily have the positive working
environment within the organisation and also influence the employees to work hard in order to
achieve the set objective of the company.
Work- Life Benefits, These are the different organisation which is giving the certain
breaks or vacation so that the individual can freshen up form the work load and also helps in
keeping influenced towards their given job role (Dwyer, 2017). They are keeping enthusiastic
towards work. Different organisation is focusing on planning small trips so that the individual
can enjoy their personal time with their family and friends. This create positive attitude among
the employees and maintain the social bond with the employees. This maintain the work life
balance of the individual. Performance recognition, there are certain ways by which they can
be reward with the specific tag or the title as the high performance is the key to get success in the
individual life. This also emphasis on giving certain rewards to the high performance working
employees by offering the huge appraisal or the incentives that results in getting the effectiveness
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in the organisation and the employees will be loyal to their brand by giving their best in
achieving the overall objectives of the company.
Development of individual, employees are emphasising on sharpening their skills and
abilities so that they can grab the available opportunities for their personal and professional
development. It is important for the every organisation to have the certain opportunities by
recognition of the best candidate on the basis of their best performance and also give the
monetary support for their betterment (Houghton and et.al, 2020). The main consideration of
implementing such reward system is to have the well defined goals and also emphasis on
engaging and sustaining the potential employees in the various units.
Total reward system is important as it helps the firm to retain their talented employees
and also helps them to get the career path of them which can be helpful in gaining the growth
and development which helps in providing the incentives to employees which is giving the
quality performance and also helps in assisting the company to execute towards their set
objectives. Such plan helps in boosting the overall performance of the employees as this create
the positive environment for the employees that are competitive in nature. When the company
wants to have the rewards and the incentives then thy work hard and achieve their set targets in
order to get rewards for their better performance. Employees is also creating better relationship
among themselves it make environment effective.
Advantage of reward system for the employees is that it gives motivation to them for
their better working and also influence them to retain in the organisation in order to maintain the
work life balance. It also helps in enhancing the living standard of the individual as they will be
getting effective compensation and rewards. Disadvantages for the reward system are
sometimes, employees might feel that this is not accurate and effective to reward the individual
for their working as per this reward system (Wijekuruppu, Coetzer and Susomrith, 2021). This
can leads to the biased decision making by the human resource manager. Employee can feel that
there should not be any kind of inadequacy and can leads to create chaos in the operations.
There are different types of total reward practices for attracting and retaining the skilled
and talented employees in an organisation which combinly contribute in the growth and
development of the company. Every organisation focuses on identifying the high performance
working so that they can having the better working within the organisation which leads to
increase in the productivity and the profitability of the company. Various practices which is
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contributing in the success of the company is that the firm must emphasis on paying employee
salaries and bonus on time that give the feeling of motivation and also boast the morale of the
candidate (Foong and Chelliah, 2020). This helps in enhancing the overall productivity of the
employees as well the organisation. It is directly reflects the revenue and also act as the
motivating factor for the employees in an organisation.
Having the effective reward system helps the organisation to keep the simple reward
system so that they can understand about the operations and also have the better communication
among the employees and the employer. Effective strategies for the employees also helps in
proper employee engagement and their retention which could leads to have the effective results
in the organisation in the various departments. This also helps in fulfilling the personal goals of
the individual soi tat they can be have the better life ahead. Companies also focuses on giving
the various training sessions so that the employees can enhance their skills and abilities.
Organisation must use the effective merit system so that they can provide the rewards to
their higher performance working which will act as the valuable asset for the company. This also
helps in getting the enhancement in the profitability and productivity of the company. Engaging
and retaining the high performance working helps the firm to meet the competitive edges in the
large marketplace. This helps the Morrisons to get the effectiveness I their operations as they are
having the effective reward system in their operation by which the employees feel influenced and
motivated so that they can contribute in generating higher profitability and growth.
Total reward methodologies are described as effective ways which is used by
organisation in order to reward their top performers that helps an organisation in achieving all
their goals and objectives. With respect to this essay, its main focus is on practices which are
used by Morrisons in order to retain all their workers and also inspire them to work hard and
achieve success.
In context with Morrisons, the manager mainly focuses on offering rewards to all their
employees on the basis of their performance as well as the contribution which they did in growth
and development sector of their company. The organisation focuses on enhancing an assessment
criteria for the workers and on the basis of that the performance of them is evaluated and prizes
are given to them. The top management of chosen company assures that the decisions are not
being biased while doing complete analysation.
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In other ways, the managers of Morrisons also focus on enlarging the evaluation tool and
understanding about the growth and development of workers mainly on the basis of knowledge
as well as skills. It helps executives to judge the overall development of workers and in
accordance with the complete performance and the usage of resources, rewards and certain gifts
are given. The management department assures that the procedure must be transparent as there
should be no confusion among all the members with regards to the process being followed.
In relation with Morrisons, it is significant for them to assure that proper fairness and
equality is being assessed. By giving the rewards to all the workers it is crucial for them that
prizes are being given in a fair manner. If any employee is doing some additional work then it is
applicable if he or she is getting extra pay but it should also be done in an equal way. No
discrimination should be done on total rewards. The management staff of Morrisons ensured that
their reward programs are being equal and fair and through this all the employees working in an
organisation are treated equally. All individuals belong from different background and culture
but on the basis of that no kind of discrimination should be done.
CONCLUSION
From the above report it has been determined that the aspect of human resource is very
much important. It focuses on how efficiently a company can make the usage of human resource
in terms of achieving all goals and objectives. Besides this, it also defines about the importance
of total reward system in a company and how it helps an organisation in getting indulged and
retaining the workers within an organisation. This system is associated with several advantages
as well as disadvantages with respect to any company.
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