5 Total Reward Strategy Total Rewards Strategy Team D HRM/600 July 27, 2014 Professor Carlos Jon Total Rewards Strategy Success at Motors and More Inc. is largely attributed to our dedicated employees, which is also attributed to the Total Rewards Strategy currently used to entice our workers. According to World at Work Organization (n.d.), total rewards refers to, “all of the tools available to the employer that may be used to attract, motivate and retain employees.” These rewards entail all the factors that an employee would perceive to be generating value from the work that they offer to the firm. We have adopted a Total Rewards Strategy that ensures the best workers are attracted. The Total Rewards Strategy is comprised of five elements, including; compensation, benefits, performance and recognition, work life and career, and development opportunities. Good! These elements provide organizational tools to generate value from our employees. We are committed in ensuring our employees get the best rewards so that they remain productive and focused on our vision which in turn benefits our organization. Additionally, we will implement lead-lead strategy for the next three years and re-examine where we stand afterward which also complements our strategic mission and business plan. Compensation Strategy According to World at Work Organization (n.d.), compensation refers to the “pay provided by an employer to an employee for services rendered”. Our employees deserve to be rewarded according to their performance, which is driven by their skills, talent, and productivity. The key to retaining the “most talented” workers in any successful organization is pay for performance and a strong compensation package. The core compensation elements for our workers are; Base pay - also referred to as “fixed pay”. This compensation offered does not differ depending on the performance of our employees. Just as the name suggests, this is a fixed amount, and is determined depending on where our employees fall in the hierarchy. Illustrate the hierarchy An annual increase is automatic for all employees on a rate of 2% of their annual pay but not to exceed more than 5% of their annual basic pay. Automatic for all employees – management and non-management; and part-time as well? Variable Pay - used to reward our employee’s performance. This is an excellent motivational tool which has been implemented to strengthen our worker’s performance. Variable pay is normally offered to our workers after they meet minimum length of service – 2 years for managerial levels and 4 years for non-managerial levels. Additionally, this reward is only given to those employees whose annual performance reviews indicates meritorious service or performance directly resulting to an innovation of any key products or accessories. Short term Pay – also falls under variable pay where employees are rewarded annually according to their performance as indicated on t.

1. 5
Total Reward Strategy
Total Rewards Strategy
Team D
HRM/600
July 27, 2014
Professor Carlos Jon
Total Rewards Strategy
Success at Motors and More Inc. is largely attributed to our
dedicated employees, which is also attributed to the Total
Rewards Strategy currently used to entice our workers.
According to World at Work Organization (n.d.), total rewards
refers to, “all of the tools available to the employer that may be
used to attract, motivate and retain employees.” These rewards
entail all the factors that an employee would perceive to be
generating value from the work that they offer to the firm.
We have adopted a Total Rewards Strategy that ensures the best
workers are attracted. The Total Rewards Strategy is comprised

2. of five elements, including; compensation, benefits,
performance and recognition, work life and career, and
development opportunities. Good! These elements provide
organizational tools to generate value from our employees. We
are committed in ensuring our employees get the best rewards
so that they remain productive and focused on our vision which
in turn benefits our organization. Additionally, we will
implement lead-lead strategy for the next three years and re-
examine where we stand afterward which also complements our
strategic mission and business plan.
Compensation Strategy
According to World at Work Organization (n.d.), compensation
refers to the “pay provided by an employer to an employee for
services rendered”. Our employees deserve to be rewarded
according to their performance, which is driven by their skills,
talent, and productivity. The key to retaining the “most
talented” workers in any successful organization is pay for
performance and a strong compensation package. The core
compensation elements for our workers are;
Base pay - also referred to as “fixed pay”. This compensation
offered does not differ depending on the performance of our
employees. Just as the name suggests, this is a fixed amount,
and is determined depending on where our employees fall in the
hierarchy. Illustrate the hierarchy An annual increase is
automatic for all employees on a rate of 2% of their annual pay
but not to exceed more than 5% of their annual basic pay.
Automatic for all employees – management and non-
management; and part-time as well?
Variable Pay - used to reward our employee’s performance.
This is an excellent motivational tool which has been
implemented to strengthen our worker’s performance. Variable
pay is normally offered to our workers after they meet minimum
length of service – 2 years for managerial levels and 4 years for
non-managerial levels. Additionally, this reward is only given
to those employees whose annual performance reviews indicates
meritorious service or performance directly resulting to an

3. innovation of any key products or accessories.
Short term Pay – also falls under variable pay where
employees are rewarded annually according to their
performance as indicated on their annual performance appraisal
reports. This period may be reduced which is contingent on our
organization’s evaluation period or as warranted by special
projects, specific programs or upon direction of all three - the
Human Resources Director and the Vice President of Finance
and the Vice President of Operations. Question: after 2
years...then one would qualify for both variable pay and short-
term pay?
Long term pay - this type of compensation rewards our
employees for their productivity efforts for more than five
years. For example, after five years of working with our
company, our employee’s salary is increased according to
performance and seniority. This will be given on employees’
anniversary dates on their 5th, 10th, 15th, 20th and every 5
years thereafter and is a one-time bonus. A board of
departmental managers and directors will decide the bonus
amount every three years so that bonuses will be standard for all
rank and file while executives and above will be based on their
employment contracts and stipulations. Need to cite your
sources of the above four...what is the purpose of an
employment contract – as the consultant firm you will need to
explain to the company.
I would suggest revisiting your plan(s) and think about three
different groups: Sales people (what type of pay); management
(includes supervisors and marketing); and production/sales floor
– which will be mainly hourly pay. Then based on the grading
rubric (see at the end of this document for the rubric) create a
matrix...
Benefits Strategy
World at Work Organization defines benefits as “programs an
employer uses to supplement the cash compensation that
employees receive.” This type of rewards strategy is simply
meant to provide workers with security in several areas that are

4. sensitive in nature. For example, we offer benefits in welfare,
health and retirement. In terms of welfare and health, the
following are the key benefits that are accrued by our
employees:
· Dental plan – optional at employees cost
· Medical plan – full family coverage as specified on
employees’ handbook, other options will be provided for those
who are already covered in their spouses insurance coverage or
any other insurance coverage.
· Insurance on disability – full coverage as specified on
employees handbook both short-term and long-term disability
plans?
· Life insurance - $10,000.00 at no cost to all employees and
additional premiums for greater coverage when desired by
employees; see employees’ handbook
Other types of benefits that are normally received by our
employees include:
· Retirement benefits – lump sum after 30 years of service;
varies and specified on employees handbook. The rest will be
based on their contributions on our Defined Contributions Plan
where we provide .30 cents for every dollar they contribute for
employees with more than three years but less than five years,
.60 cents for every dollars they contribute for more than five
years but less than fifteen years and $1 for every dollar they
contribute for employees of more than 15 years service. Cite
your source...look into your compensation class notes and
revisit the matching plan...Details are provided on our
employees’ handbook.
· Payment for absent days – paid time- off of 5 days annually –
for all employees? Part-time?
· Sick leave – paid sick days of maximum 5 days annually what
is the difference between absent and sick leave?
· Holiday – Only specific Federal Holidays as published on our
company intranet and employees handbook will be paid. Some
state holidays maybe considered on a yearly basis.
· Vacation – paid 10 days vacation leave on the first five years

5. and paid 15 days after five years but before 15 years, and 20
days after 15 years of loyal service. Identify your qualified
population...full time employees.
Our benefit package is designed to retain and motivate our
workers, and to provide them with a competitive benefit
package. We have patterned our benefit package from the latest
rewards strategies provided by Top 20 companies in the state
within the last 10 years so we feel strongly that we are leading
the industry. This strategy will ensure our workers are not only
productive, but properly compensated for their performance and
ultimately enhance and increase their total contributions to the
company’s value.
The above from salary.com allowed us to make comparisons
based on median salary and bonuses.
Work Life
Work life is structured to ensure a healthy balance between our
employees’ working hours and their home activities. This
balance is driven by our support, communication of programs
offered, and time-off when their performance warrants it.
Accordingly, our work-life programs are showing successful
trends because of the key strategies we have adopted;
· Flexibility in the workplace. This provides workers with
flexibility in managing their work schedule and also setting
time aside for outside activities. This includes the option to
select which of their time off is paid or not, and which ones will
be charged as sick leave without having to go to doctors/clinics
and getting unnecessary paperwork. Research a PTO plan and
see if this fits your recommendation.
· Offering time off - whether paid or not, employees may
request time off or offered time off even when it was not pre-
scheduled but suddenly required by employees. Non-chargeable
Paid Time off may also be offered by department managers
when specific performances have been displayed and completed
by employees during critical operations. Not only do employees
feel rewarded but offering this type of reward makes them feel

6. our recognition is sincere and worth the extra effort they put in.
see above - PTO
· Motivating employees to live healthier lifestyles. This helps
to increase productivity in our organization and reduces
absenteeism. No smoking areas have been built and established
to allow and promote no smoking to employees. Additionally,
one of the rooms in the factory has been converted to a small
work out/health center for those interested in various healthy
activities.
· Community participation – An annual company picnic is
provided at no cost and ell employees and their families are
encouraged to attend during normal working days. All those
who attend will get their normal pay and those who choose not
to attend can take a non-paid time off. Additionally, the
company will attend or support one local holiday celebration
every two years and all employees and families are also
encouraged to attend. Likewise, employees will be on the clock
on these events while supporting the community.
Performance and Recognition
We have a diverse group of talented employees with varying
levels of ability and skills. Performance and recognition is
focused on assessing workers based on their individual efforts
and team efforts, as well. Our company recognizes individual
efforts by offering employees with; trophies for work
performance; tickets to sporting events, and award certificates.
This recognition and reward strategy ensures that our workers
are praised for performance in front of their peers and this helps
to drive performance and productivity in the future. On the spot
bonuses will also be given on extreme performances that
directly resulted to the company’s tremendous increased sales
or forecasted dramatic increased in value.
Career and Development Opportunities
Without doubt, employees have their own career goals they
desire to achieve. We help our workers to advance in their
career fields and later to apply for positions of increased

7. responsibility. These in-house promotions bring ensure we
retain and award our most talented employees, and help to
support our employees with their career goals. Our company
strives to support and implement career and development
opportunities, in order for our employees to gain new skills,
stay abreast of current technology, and to continuously
developing their professional skills. The fact that our workers
are spending their time to make the company successful
improves productivity, morale, and retention.
Clear communication with our employees is crucial to keep
information flowing at all levels within our structure.
Information from our employees is a valuable management tool
which provides a framework to better understand their needs
and demands. If our employee’s demands are feasible, then
management can provide them through “The Total Rewards”
strategy. For example, a worker that desires to work in a sales
position, which is commissions based, and rewarded according
to monthly target goals, would have their demands fulfilled by
working in a position, of their choosing. (Note: This is only if
approved by management, and if their performance to date,
warrants a job change). This same principal may be applied to
salary, raises, and other types of benefits that our HR team and
management may choose to implement. Additionally, we desire
our employees to be compensated fairly, especially with
recognition, performance based raises, bonuses, or promotions.
Evaluations are conducted on an annual basis, including a mid-
year review, and compensation, including recognition for
outstanding performance is recognized. Our employees are
provided with a signed, written copy of their performance
review to retain. The table below allows us to see how much of
the salary and benefits are allotted for each criteria and apply
adjustments whenever possible. The last table below from
payscale.com helps us compare ourselves to the competition and
also to the local industry and allows us to remain the industry
leader.

8. References
“Benefits." Benefits. N.p., n.d. Web. 22 July 2014.
<http://www.worldatwork.org/waw/home/
“Compensation." Compensation. N.p., n.d. Web. 22 July 2014.
<http://www.worldatwork.org/waw/home/
"What Is Total Rewards?." What is Total Rewards. N.p., n.d.
Web. 22 July 2014.
<http://www.worldatwork.org/aboutus/html/aboutus-
whatis.jsp>.
Total Rewards
Instructions for Completing Plan
1. Explain the Total Reward Strategy of the organization
Discuss the role of Compensation, Benefits and Non-Financial
Rewards and their effect on the workforce.
2. Determine strategic decisions in total compensation strategy
Determine the strategic mix of base, incentive, bonus, benefits
and other rewards for strategic workforce alignment.
3. Demonstrate an understanding of competitive base, value
proposition for employees, keeping with fiscal requirements of
the organization
Discuss the strategic direction of Internal Equity, Market
Competitiveness and Individual Rewards' distribution and their
alignment to Performance Management.
4. Explain how total reward package fits with overall business
strategy

9. Discuss any additional Compensation Strategies that may
enhance the total Reward Strategy. These may include Pay For
Performance, Broad banding and Group Incentives.
5. Evaluate control measures for compensation
Create a Merit Grid philosophy to insure range controls and cost
effectiveness.