The Future of Total Rewards

           Companies and workforces will need to make positive changes if they seek good financial performance. Fewer talented people are being sought after, instead companies have chosen to “grow to greatness” instead of emphasizing cost reduction. Getting the right people in the right roles is vital for a business to thrive. To attract the people they want, many companies are just cranking up their pay levels. However, paying more can lead to an imbalance between what people are paid and how much their skills are worth in the long term.                                                                                                                                    The future belongs to companies that can successfully enter into a better workforce deal with they people they need. It is important for them to make people the priority for the future. Total rewards are part of the formula for success. The modern workplace is transforming rapidly. Speed is critical, placing intense pressure on what we do, how we do it, and how fast we do it. Companies do not have the time to spend years designing bureaucratic, costly, and time-consuming HR solutions. The easiest thing to do is to pay people more, but this is not always possible or practical.

Changing total rewards and the deals companies make with their employees has a more powerful effect. If total rewards have not been changed to align with the business goals of the company, there has been no true change. Total rewards continue to prove helpful in communicating what is expected and in gaining workforce acceptance and commitment. All companies must eventually face two major workforce revolutions: the realities of the better workforce deal and the migration to total rewards. (Zingheim & Schuster, 2011)

According to Stephen Covey, there is either a win-win or “no deal workplace,” (Zingheim & Schuster, 2011). This means that if both the enterprise and the people do not come out winners, neither should make the deal. In the better workforce deal, the company and the workforce meet halfway. The business invests in people, and people meet it by learning new skills and competencies and performing to reach organizational goals. People want to grow, add value, and make a difference. A wise company will recognize this and will invest more heavily in people’s growth and success. People want a deal where they win when the business wins and where they are stakeholders in the future of the business.

Reference

Zingheim, P., & Schuster, J. (2011). Winning the talent game: Total rewards and the better workforce deal! Schuster-Zingheim and associates, Inc., 17(3), 33-39. Retrieved from http://www.schuster-zingheim.com/docs/Winning_the_Talent_Game.pdf