Comprehensive Analysis of Total Rewards and Employee Engagement

This report delves into the critical role of employee remuneration and rewards in fostering engagement and satisfaction within organizations. It begins by differentiating between time rate and piece rate methods of compensation, highlighting their respective advantages and disadvantages. The report then explores the significance of talent management, emphasizing the need to attract, retain, and engage employees through effective reward systems. A comprehensive literature review examines the impact of total rewards on employee engagement, reward satisfaction, and talent retention. It covers various aspects such as compensation, benefits, professional development, and recognition. The report also presents a conceptual model and research hypothesis to analyze employee rewards. The study aims to propose a new instrument for measuring reward satisfaction and understanding its impact on employee motivation and organizational success. Overall, the report emphasizes the importance of a well-designed total rewards system in enhancing employee performance, reducing turnover, and achieving competitive advantages.

Running head: TOTAL REWARDS
TOTAL REWARDS
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................3
Piece rate method.........................................................................................................................3
Background and Context.................................................................................................................4
Literature review..............................................................................................................................5
Introduction..................................................................................................................................5
Employee engagement.................................................................................................................5
Equity theory of employee engagement......................................................................................7
Total reward and reward satisfaction...........................................................................................8
Antecedents and outcomes of reward..........................................................................................9
Total reward scale........................................................................................................................9
Reward satisfaction......................................................................................................................9
Proposed reward scale measure...................................................................................................9
Team-based reward systems........................................................................................................9
Pay for performance applications..............................................................................................10
Talent Engagement....................................................................................................................10
Conceptual model and research hypothesis...............................................................................11
IBM SPSS statistics...................................................................................................................11
Problem statement.........................................................................................................................12
Conclusion.....................................................................................................................................13

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Introduction
Employee remuneration is a reward or compensation provided to an employee for his or
her performances. It motivates an employee to perform his or her work in an efficient manner
(Van Zyl, 2014). The salary of an employee is an important source of income for an employee. It
helps to improve the standard of living of an employee. For that reason, rewards, as well as
remuneration, is very important for an employee. There are two types of remuneration of
employees:
Time rate method
In the case of the time rate method, remuneration is directly related to the time spent.
Employees are paid for a fixed pre-decided rate. The payments of these employees are fixed. It
may be hourly, daily, weekly or monthly. It is not dependent on the production provided by the
employees. It is a very easy method of remuneration. It gives a minimum wastage of resources. It
is also responsible for the lesser probability of accidents. The time rate method gives an
outstanding outcome (Urbancová,&Šnýdrová, 2017). New employees will get lots of advantages
because they will learn without any reduction in salaries. There are some disadvantages tothese
methods. It provides strict monitoring, an indefinite expenditure of employees and lesser
efficiency of employees because there is no distinction between the employees.
Piece rate method
In this method, the remuneration is based on the basis of the units or pieces generated by
the employees. In this particular system, special emphasis is provided on quantity rather than
quality. Under this system, the salaries of the employees will vary. It is entirely dependent on the

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quality of the output. In this method, less amount of supervision method is applied. For that
reason, per unit cost is very less. This system improves the morale of all the employees because
their salary is directly related to the work efforts (Terera & Ngirande, 2014). There is a huge
amount of efficient in the work is required. This method is not computable. It decreases the work
efficiency, wastage of resources, insecurity of all employees and lesser unity among employees.
Background and Context
Talent is a very important organisational and sustainable success. For that reason talent
needs to be attracted, retained and engaged (Sungatullina & Sokolov, 2015). Reward satisfaction
is an important antecedent if talent attracts. Reward satisfaction is an important antecedent.
Therefore company needs a valid measuring instrument. The aim of the study is to propose one
instrument.
This research will focus on employee rewards. Employee retention is mainly focusing on
the reward system of a particular company. Transfer of an employee can be costly affairs. Public
sectors are so-called more secured sectors than the corporate sectors. In public sectors, the higher
authority needs to manage the employee remuneration and motivation of employees. Rewards of
the experienced employees in public, as well as private sectors, help to the growth of the success
of the company and generation of competitive advantages (Stachova, Stacho&Bartáková, 2015).
Many companies cross international boundaries to continue their business. A company may
implement a specified rewards system to increase the efficiency of the employees. These are
involved in the context of an ever-changing society. The employees are trying to keep
themselves wealthy. Educated, as well as a dynamic workforce, provides more emphasis on the

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reward of the company. Employee rewards also increase the job satisfaction of the employees. A
company may use this as a weapon against their business enemies.
Literature review
Introduction
S Hassen in his research paper The Effect of total reward on the employee engagement
mentions that companies are aware of the involvement of the employees because they are facing
a globalized competition. Engagement of work is a critical task. It is not only for academic
purposes but also for professionals. Many research works say that this engagement has a positive
relationship with the result of various companies (Pek-Greer, Wallace & Al-Ansaari, 2016). It
will enhance the performance of the employee, customer satisfaction, huge amount of production
and decrease in employee turnover. There is other research thatis reported job and company
involvement.
Employee engagement
As per the study of Galip (2013), only thirty percent of employees have involved they in
the work, fifty percent of employees are merely present in the work, but the other twenty percent
are actively disengaged. Gallup estimates their cites in the Harvard Business Review (2014). The
importance of the employee’s engagement is performed for the survival of the employees and it
is used to decrease the prosperity of the company. It can easily predict that a decrease in the level
of engagement can have serious consequences for the result of the business because it is reported
in many studies. It is noticed that the engagement of the employee is an important point for a
company. Many employees are not engaged in the assignment or many even are actively
disengaged (Onyancha, Elijah &Muturi, 2014). Companies must search for various types of

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strategies. They may use several mechanisms to motivate the employees and achieve the best
from them. In the present economic context, it is very important for a organisation to motivate
several staffs as well as increase their level of interest. In the current scenario, companies are
transferring their attention to the total amount of reward packages for motivating the employees
and increasing their level of engagement. Other studies reported that a lack of rewards as well as
recognition can lead to employee turnover (Ogedegbe&Bashiru, 2014). Many studies also prove
that the reward system provides the employees with some systematic practice to get some
positive results. Kahn (1990) reported that people vary from engagement levels as a function of
their perceptions. They will receive from their work. Different studies revealed that reward may
serve as a systematicpractice. Engagement of the problems has a critical effect for many
companies because various surveys indicate that only a few employees after working between
the seventeen to twenty-nine. In a recent study of Harvard, business analytics say that twenty-
four percent of the employees are highly involved in the studiedcompanies. Employees area great
asset to a company. Most of the companies understand that it is very important to engage
employees in the company (Mugisha&Kajungu, 2015). Several strategies can be implemented to
improve the engagement of the employees. The Hay Group observes the engagement as an
interchange of the relationship between the employer and employee. Researches argue that, if
they are not fair employees, they will not influence the involvement of the employees. The
rewards have a very powerful influence to decide the level of employee engagement. For that
reason, the companies are providing various kinds of rewards to reach the desired level of
engagement (Mokaya et al., 2013). It is a logical method to provide a reply to the employer. It is
very difficult for employees to modify their level of performance. Social exchange theory
explains why the employees become engaged and disengaged from their jobs.

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Equity theory of employee engagement
Studies show that the provision of the rewards by the employer increases the employee’s
interest in the job. As cited by Sacks, this theory is cited by the definition of Kahn. Employees
will elaborate on the citizenship of a company to reciprocate the perceived favors. Another basic
theory is the theory of equity. The main flavor of this theory is that employees receive the
rewards received from their job responsibilities. They compare the outcome-input ration to the
relevant others (Mokaya & Kipyegon, 2014). The employees perceive the ratio that is equal to
the relevant others. Rewards are fair and it will help to enhance the involvement of staffs within
the company. They observe that the ratio is not equal to each other. Different models are
developed in recent years. Many of these models offer different structures. It also provides
advantages to the employees. The researcher can explain the outcome of the total rewards. It
includes remuneration, advantages, work culture, performance and recognition, and development
and career opportunities. Kahn defines the engagement of employees as the harnessing of a
member of the company. The cognitive aspects of the employees have positive as well as
negative behaviours towards the company and its team leaders. Engagement of Kahn represents
the tendency of employees.Stockley (2007) describes engagement as the extent to which an
employee believes in the vision and values of the company. It elaborates several commitments
by using different actions as an employee and their behaviour towards the employer as well as
consumers. Engaged employees are treated as the builder of an organisation. They perform at a
consistent level. They want to utilise their talents (Maloa, 2015). They have the ability tom work
with full potential. They increase the motivation to other employees and move their company
forward with the help of their performances. A company should provide some compensation to
the employees to achieve the best employee performance (Johennesse&Chou, 2017).

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Recognition is the psychological expectation of an employee. It helps to reach a company to the
highest peak of success. Career opportunities help an employee to achieve career objectives. In
this paper, the author describes the contribution of perceived reward. There is a strong
relationship between the total rewards as well as the involvement of employees. If the total
reward increases then employee engagement also increases.
Total reward and reward satisfaction
Work engagement is very essential for any company. Crystal Hoole says that in order to
access that they hire best employees and try to keep them motivated. They try to shift their
mindset into the total reward strategy(Baba, 2015). This study will explore the total reward as
well as reward satisfaction. A statistics report says that less than thirty percent of the employees
are engaged into the work. A research says that employees are not satisfied with the traditional
reward system. They want to feel valued and appreciated. According to Nor et al. (2020),
employee recognition and rewards helps to enhance the productivity of the employee.hey
mention that Malaysian government gives excellent rewards and recognition for the dedicated
employees. It also improves the services of the public sector of Malaysia. If the employees of
their Transport department provide outstanding services then they provide a good remuneration
to their employees.Good HRM practices motivates the employees to work efficiently.
Antecedents and outcomes of reward
Roy Wise says that employee engagement is the most important concept. A survey says
that hundred two employees are involved in the variety of jobs and companies (Baba, 2015). The
average age is thirty four to sixty years. Candidates are involved in the current job for four years.
It provides a happy and homely environment in the workplace. Employee incentive program
helps to decrease the turnover and enhances employee wellness program.

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Total reward scale
Total reward system has five components: compensation, benefits, professional
development and recognition. Compensation elaborates to the different ways by which a staff
earns money from a company (Grzenda & Buczyński, 2015). Professional development has a
huge area of learning. Work life balance refers to the employees to meet their chances to meet
their targets. According to Le Bars et al. (2020), work life balance helps to enhance productivity
of a company. It also helps an employee to grow professionally and helps to make him a bright
career ahead.
Reward satisfaction
Human resources are most important for any company (Grzenda & Buczyński, 2015). For
efficient employees the company provides the reward and renovation. Reward satisfaction helps
an employee to work harder in the workplace. As per Cohn et al. (2020), the people only can
work harder when he is appreciated. A survey says that, seventy nine percent of the staffs say
that remuneration helps them to work hard as well as seventy percent of the employees become
more productive after receiving the award.
Proposed reward scale measure
As per Ivo, Ingmar and Peter, there are several psychological theories that will assume
the two basic brain mechanisms (Grzenda & Buczyński, 2015). There will be an approach for an
activation system. It will improve the reward scale for any employee of a company.
Team-based reward systems
In a modern environment, team performance plays an important role in the success of a
company. One of the first questions that are asked by the interview board of the company is “can

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you be a part of the team at the time of working?” It is very difficult for a company to ensure that
employees are working collaboratively as well as collectively (Grzenda & Buczyński,
2015).Torrington et al. (2011) say that if the management of the performance of the employees is
not performed accurately then it will be very difficult for the employees to manage the
performance of the team. Group based rewards are logically focusing on team management as
well as the performance of the work. It will be very easier for the manager to evaluate the
performance of a team. According to (WorldatWork 2010a), it may take some time to adjust a
new team member with the remuneration system of the company.
Pay for performance applications
One of the most important ways by which money is controlling the production of the
company has been through the pay for performance applications (Borowski & Daya, 2014).This
term can be defined as the payment of the individual amount of money for the production of each
unit. Pay per performance can be treated as an incentive motivator for an employee.
Talent Engagement
The track record on retaining talent is the most important factor for talent engagement.
Gallup studies saythose fifty-five percent of workforces are not involved. Towers Pennin says
that one third of the research of all the workforces are negative. CNN has suggested that 8 out of
10 are currently for a new job and employer (Balakrishnan, Masthan & Chandra, 2013). This
record is not at all good but there is a very good opportunity to become a strong leader. Every
contemporary show that pay does not count for the high-level performers. The top-level
employees believe that they should pay above the market rates. Many analysis shows that
companies who are paying for the performance are likely to outperform. The companies want to
make the structure of the organisation is attractive in front of talented employees (Babagana &

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Dungus, 2015). It is the responsibility of the team leaders to make the company attractive in front
of the outside world. It will help them to make dedicated employees attractive. It will add some
value to the company.
Conceptual model and research hypothesis
Macey and Schneider (2008) say that potential antecedents cannot be rigorously
conceptualized. In addition to that, prevalent literature provides mixed results. Researchers
consider that the engagement of all the employees hasa multi-dimensional construct. It has some
related to job and company engagement (Baba, 2015). It is entirely related to the demographic
variables. It is used to the assignment of the employees and company engagement. Researchers
believe that this study can have a contribution to the literature of engagement. The outcome will
find important implications. According to Hay Group (2013), Economic growth allows more
opportunity to contribute some money in people. The positive multi-year trend is very important
for employee engagement. These are carrying their entire selves to work. In the case of North
America, the involvements of the United States are not so high for the last few years.In previous
years, the employment rate in Canada decreases three points. In Latin America, massive
instability in Venezuela has contributed to the small drop for the entire region. The largest
markets of Brazil and Argentina are inconsistent mode (Anitha, 2014). In Europe, a decrease in
the two points is the reflection of the current tension around the Brexit. The positive movement
of China and India are the primary drivers.
IBM SPSS statistics
Field (2013) says that IBM SPSS statistics is very important for employee remuneration.
It helps a company to receive a free salary comparison based on the job title, skills, experiences

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and education (Anitha, 2014). It helps a company get all the data related to the employee salary
as well as data related to employee education.
Problem statement
In the correct circumstances, incentives have some important effects. It will increase the
motivation of all employees (Alafi, Al-Qeed & Alkayed, 2013). Incentives helpemployees to
enhance their performance. If incentive rate is designed badly then it can have a bad effect on the
company. Earlier reports of PRP in European countries highlight that there is a continuous
problem of implementation of the performance policies. There is inflation in the performance
ratings. In many cases, PRP policies are failed to meet the main motivational needs for efficient
performance. Previous reports in the United Kingdom disclosed dissatisfactionwith the PRP
policies and highlighted some important questions. Other experts say that the performance pay
system has a positive effect on performance. It is very important to note that instead of
increasing the use of performance-related merit policies, their actual effect is not
achievable(Agustiningsih et al., 2014). There are many risks that are involved in both the
collective as well as individual PRP policy.
 Marsden and Richardson (1992) said that many employees mentioned that merit
generated the jealousy of an employee. It would reduce the morality of an employee.
Employees can view the PRP as an entitlement but not as a reward. Inefficient
performers may not take their bad performances seriously. It clearly shows some bias
for conducting the performance appraisals (Adeoye & Fields, 2014). Efficient
employees avoid negative social sanctions. Other possible effects are neglecting the
aspects of a job.