Benefits and Challenges of Total Reward System for Employees and Employers

Total Reward is used by employers as a way to
motivate their employees

Table of Contents
INTRODUCTION 3
MAIN BODY 3
Discuss the benefits and challenges of this approach to financial and non financial reward for
both employees and employers...................................................................................................3
Current facts and figures in terms of the total reward system and current Trent........................4
Equity theory of motivation........................................................................................................4
Benefits of the total reward system for employees and employer..............................................5
CONCLUSION 7
REFERANCES 8

INTRODUCTION
A total reward system is a method used by companies to motivate their employees to
work towards the organization achieving its goals and objectives. There are five elements to the
total reward system which are benefits, recolonization, professional development, compensation
and work life balance.
This report will focus on Marks and Spencer for this case study. The report will define
total reward system and provide differentiation between financial and non-financial rewards. It
will analyze the reward system used by M&S and the current trends in the particular reward
system. This report will provide models and discuss benefits and challenges of the system. A
conclusion will be provided at the end.
MAIN BODY
Discuss the benefits and challenges of reward formulation to financial and non-financial reward
for both employees and employers
A total reward system comprised with all the efforts of an employer can aid in the
motivation of employees, recruitment, development and increase the performance of the workers
in the company so the company gains competitive advantages (Haider and et.al., 2015).
Employees are the core aspect of any organization to run their operations in line with their
objective. Without the support of employees, a company cannot be successful. The total reward
system is used by companies to motivate their employees, so they can help the organization
grow. This is one of the best ways to get outcome from the employees according to Abayomi
Adebisi et al. (2015). There are five elements to the total reward system as mentioned in the
introduction. These are benefits, recolonization, professional development, compensation and
work life balance.
The two types of the total reward system are financial and non-financial rewards. In the
financial reward system, companies give their employees money or bonus as a reward (Smith.,
2016). These financial rewards are a good ways to motivate employees, because it makes the
employee feel valued due to receiving this recognition. Therefor they are likely to keep

motivated. Employees get this reward if they complete their company target or help the company
to achieve success in the market. In the non- financial reward system, superiors of the company
do not give money or bonus. In the place of bonus or money, they give promotion to higher posts
or grant greater responsibility to deserving employees (Abayomi Adebisi and Oluwafunke
Oladipo., 2015.). With the higher posts generally also comes financial rewards in the form of a
salary increase, which is also a motivating factor for employees.
Recent figures $ facts in terms of total reward system and Recent Trend
M&S is one of the most famous retailer in the UK and has many schemes and
motivational reward systems to keep their employees motivated (Adam Cobb., 2016). M&S is
currently following a non-financial reward system in which they are giving cards to their
employees according to their performance and customers satisfaction. In this card system they
distribute cards in different criteria which are gold, silver, diamond and platinum. The cards can
be upgraded in accordance to points accumulated by employees. The cards can be used towards
purchasing products such as I-pad, T.V, mobile and many more (Schlechter, Thompson and
Bussin., 2015). This scheme motivates their employees and there are many employees who win
grand prizes. The company also displays their names and photos on their stores.
Benefits and rewards helps companies to retain talented employees and to build a
different brand identity from other competitors on the basis of skilled and efficient work force.
Personalized rewards show employees that the company care and value them and their efficiency
is respected within organisation. It is important for the company to ensure that their workers gain
suitable rewards for their hard work and contribution so that they can keep themselves motivated
and committed towards organisation (Barba-Sánchez and Atienza-Sahuquillo., 2017). There re
various benefits which are being associated with reward like or example it increases motivation
of employees. This supports company in increasing their operational efficiency and also their
ultimate goals and objectives are being increased. It also supports them in meeting out the aim
which is important to them. Reward also support firm in creating employees loyalty, in this
workers do not leave company and make sure that they remain loyal to firm. They also increase