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Total Rewards

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Total rewards are not just about pay, it is everything that is valuable to an employee in relation to employment. Employees want to be rewarded for their time and energy, therefore, organizations have developed total rewards strategies to attract and retain the best employees.

Describe each of the top five (5) advantages of a total rewards approach

The top five advantages of a total rewards approach are increased flexibility, improved recruitment and retention, reduced labor cost/cost of turnover, heightened visibility in a tight labor market, and enhanced profitability. According to Wiley (2011), each employee enjoys a sense of flexibility; it is viewed as a pathway for employees to determine their availability for work. Employees who make choices about his or her own setting are more connected to the workplace, because they have a feeling of ownership (Storey, Wright, Ulrich, 2009). Recruitment and retention plays an important role in a total rewards approach however, organizations are plagued with shortages of top performing workers, and therefore employers are using the right approach to staffing, the best candidates, and retaining those candidates. Today’s workers are not just interested in their salary but also, other aspects of their company.
According to Wiley (2011), job candidates weigh their options with numerous companies, and those companies with total rewards have a competitive advantage, because job candidates are able to view the “total value” of the company’s employment package. Also, all organizations would like to remain competitive, which gives the organization the drive to reduce labor costs/cost turnover. When an employee departs a job, this can be at a considerable cost for the employer. Employers can decrease their turnover rate by incurring retention cost, such as higher wages, improving the quality-of-work-life, better benefits and...

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