Thailand Culture: Total Reward Systems - Benefits and Compensation

This essay explores the concept of total rewards within Thailand's cultural context, focusing on the blend of monetary and non-monetary benefits offered to employees. It examines the key dimensions of an effective total reward system, including compensation, benefits, work experience, and organiz...Read More

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Thailand culture
Student’s Name
Instructor’s Name
Course
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Compensation and rewards
Total reward is a blend of non-monetary and monetary rewards that are offered to
employees for their contributions and support to an organization. The main dimension of
effective total reward system include benefits, compensations, culture, work experience and
environment. Benefits are defined as non-monetary incentives awarded to employees for their
services and they include retirement plans, health plans (inclusive optical and dental insurance),
executive benefits, disability income, paid time off and any other employee assistance program
that a company is willing to offer.
Work experiences rewards include work-life balance incentives like employee and
family assistance programs (EFAPs), flextime and wellness program. Furthermore, work
experience may also include performance management like goal setting, performance appraisals
and any other awards or recognition (Beck-Krala, Tarczoń & Masłyk, 2017). Work experience is
also a part of employee career growth and development and includes mentoring, coaching,
professional development and training. Culture and environment dimensions of a total reward
system involve human resource strategy, employees’ interest, customer expectations and
financial impacts.
Compensation is defined as the monetary benefit that an organization offers to employees
for their services (DeGeest, Follmer, Walter & O’Boyle, 2017). Compensation is based on
employee accomplishments and contributions, market research about the worth of similar jobs,
the profitability of the company, employee’s skills and experience and desire of the employer to
retain and attract employees. Through an in-depth research from public and non-public sector,
employer determines the pay-market rate of compensating employees (Olson, Slater, Hult &
Olson, 2018). Compensations include payments such as sales commissions, overtime pay,

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bonuses, an employee’s base rates, recognition rewards and checks, incentives, promotions pay
increase, merit pay, profit sharing and any other inflation adjustment an organization may intend
to offer to employees. Salary compensations are defined by various parameters such as
educational background and experience. Furthermore, compensations may also include non-
monetary payments such as stock options in certain instances, a company-paid car, a company-
paid house and other taxable non- monetary income items.
Total rewards are important to the organization as it attracts the most skilled and
experienced employees to an organization. Furthermore, compensations also helps to engage key
talents and employee retention as Onsardi, Asmawi & Abdullah (2017) stated: “the better the
total rewards, the more the employee loyalty, and the more the motivation to perform better”.
Generally, the total rewards program must generalize a balance between employees’ efforts and
corporate spending and further understand the human capital strategy for an organization.

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References
Beck-Krala, E., Tarczoń, E., & Masłyk, T. (2017). Employee satisfaction with tangible and
intangible rewards in health care sector. Polish Journal of Management Studies, 16.
DeGeest, D. S., Follmer, E. H., Walter, S. L., & O’Boyle, E. H. (2017). RETRACTED: The
Benefits of Benefits: A Dynamic Approach to Motivation-Enhancing Human Resource
Practices and Entrepreneurial Survival. Journal of Management, 43(7), 2303-2332.
Olson, E. M., Slater, S. F., Hult, G. T. M., & Olson, K. M. (2018). The application of human
resource management policies within the marketing organization: The impact on business
and marketing strategy implementation. Industrial Marketing Management, 69, 62-73.
Onsardi, A., Asmawi, M., & Abdullah, T. (2017). The Effect Of Compensation, Empowerment,
And Job Satisfaction On Employee Loyalty. International Journal of Scientific Research
and Management, 5(12), 7590-7599.