Total Rewards System Proposal

Total Rewards System Proposal: A case of Deloitte
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Total Rewards System Proposal: A case of Deloitte
Introduction
One of the core functions of the operations of any company is the ability to conduct auditing of its products and services. Deloitte consists of professionals from independent firms throughout the globe who collaborate to offer consulting, financial, audit, advisory, tax and risk management services to its clients. All the member firms that form a part of Deloitte provide services in particular geographic areas and remain subject to the laws, policies, and regulations of the country with regards to how public accounting is conducted. Every member of the firms that work with Deloitte is independent and cannot obligate each other for their acts and omissions. The success of Deloitte is dependent on the form of reward system that it deploys. The performance of the firm is dependent on the dedication and commitment of its employees to ensure that it attains its organizational objectives. For a company such as Deloitte, the quality of its employees plays an instrumental role in determining its ability to manage its daily operations. Deloitte agrees that by promoting the full value of the company and its offerings to its employees, it can sustain a quality workforce.
Brief Overview of Organization Total Reward System
Deloitte provides a premier range of total rewards system for its employees. The company offers investment options, premier pension, reward advisory services and employee benefits.

The fact that Deloitte is an international firm implies that it has to work hard to maintain its image across the globe. Any negative news regarding the way it treats its employees may have adverse effects on its reputation and hence its profitability. An essential requisite for attracting and retaining top talents for the next generation of workers is to ensure that the company can provide excellent employment experience. Reward programs have been identified as crucial elements for building the capacities of employees as well as motivating them (Hoole & Hotz, 2016). Deloitte depends on the best graduates to take up job opportunities in its companies. The process of auditing requires the effort of individuals who are keen on detail and can tell when there are mistakes. Thus, the company feels compelled to only engage and retain top talents in its workforce. Accordingly, De Gieter and Hofmans (2015), state that employers are aware that the nature of total rewards is an ideal catalyst for attracting, motivating, and retaining employees. Thus, it is imperative that the firm maintains a total reward system that would ensure its employees are motivated to remain productive in their responsibilities while at work.
Deloitte demands that several requirements be fulfilled with regards to the creation of a total reward system for its company. Firstly, the company’s reward system should be fully integrated (Deloitte Development LLC, 2017). Apparently, the firm emphasizes that its total reward system must be benchmarked and holistically designed to match the nature of services that the company provides. The company relies on its professionals to provide relevant services to its clients. Thus, an assessment of how to align a fully integrated reward system is imminent in facilitating the success of the organization. For instance, the company gives examples whereby it involves its pension actuaries in identifying the most appropriate methods for defining its pension schemes. Determining an ideal pension strategy offers relevant scheme advice and conducts the necessary valuation on the acquisition process. Besides, they provide proper assessments and guidance to the company employees who in turn are adequately equipped on how to manage their pension benefits.
Another requirement of Deloitte’s Total Reward System is that compensation and reward programs should be designed and benchmarked together. The drive towards the process aims at ensuring that even if the system is partially integrated, it meets the objectives of the organization with regards to the implementation of an ideal reward system. The drive towards designing and benchmarking reward systems ensures that employees are well remunerated and committed to providing support and assistance to its employees. Accordingly, the firm admits that the strategy provides its employees with a chance to pursue an all-round life, which offers support to their wellbeing and needs while working for the company.
The leadership of an organization plays an instrumental role in driving change. If the leadership is not set up for the realization of success, the firm agrees that it is also highly likely to run the risk of failing to deliver business value and strategic goals. Through its total reward strategy program, Deloitte admits that it can create a model that can be nurtured to adapt to new environments. It enhances the leadership capabilities at all levels thus facilitating the alignment of organizational leadership strategies with the strategic and infrastructure goals. Finally, the method is known to cultivate appropriate leadership relationships, whereby the firm is known to nurture ideal stakeholder relationships and ensure that the employees support the exercise of effective leadership of change.
The above requirements illuminate that Deloitte derives its success from running an appropriate talent strategy system. The methodology provides a framework upon which the firm can draw the demands and expectations of its employees for several roles. Most importantly, the assessment emphasized the importance of developing user talent to help nurture personal and organizational goals into a combined element.
Formulation of a Total Reward Strategy
As initially mentioned, the ultimate total reward system seeks to provide organization demands and expectations. It provides a framework, which ensures that the incentives and rewards given to its employees are integrated into its model to boost performance and hence the commitment of the employees. The reward system should aim at capturing the real essence of creating a viable and sustainable connection between the firm and the employees. The suggested total reward system aims at nurturing the talent found at the company to ensure that there is control regarding talent management amongst the employees selected.
The reward strategy will be made up of five critical elements including:
Compensation- The compensation model, which includes the base pay for both short and long-term, must adhere to the set federal policies regarding overtime, profit sharing, pay increase, promotion and both long-term and short-term incentives. For instance, western countries have a stipulated law on minimum wage. Nonetheless, companies such as Deloitte must meet minimum federal compensation rate for the regions that they operate.
Benefits- Paid time off and holidays will make up a critical part of the total reward system at Deloitte. The package offers eligible professionals a structure in which they can manage their time off in a way that works best for them. Moreover, the program provides an allotment in which sick off and vacation time can be created. Nonetheless, the creation of the program benefits would only be dependent on the position of the professional and their number of eligible years in service. Using such a strategy ensures that employees remain loyal to the company and offer services to the best of their abilities. Additionally, the program will also include a health cover package, which encompasses different medical plan options. In the U.S and Europe, employers are expected to comply with the provision of medical cover to take care of medical expenses. The strategies have been effective in countries, which do not have solid unions to emphasize the importance of medical cover and benefits. The strategy would ensure that the company’s employees have quality access to national provider networks and focus on preventive strategies that would boost the health status of the patient. Similarly, the health plan would be dependent on the service time of an employee.
Career training and development- Talent remains a top global challenge. Once the company realizes the potential of an employee, it will use its resources to train and ensure that the employee has the requisite skills that match the demands of the current market. Talent management and performance monitoring would ensure that the company retains its best talents. Research indicates that a top human resource concern in today’s work environment is the ability to find, motivate, and keep talent (Kwenin, Muathe & Nzulwa, 2013). As a result, Deloitte relies on rigorous hiring processes, which give it a competitive edge over other organizations.
Performance Management- The performance management system will foster to ensure that the firm continues to prioritize talent and motivate its employees towards the realization of organizational objectives. Nonetheless, the process of talent retention should reflect the culture and goals of the organization. It should also demonstrate an appropriate return on investment, whereby organization strategy and profitability should not be ignored at the expense of a total reward program.
Work- Life programs- These refer to those programs that are designed to help employees by providing a flexible telecommuting, scheduling and childcare programs. The organization must identify that the outcome of the work process is dependent on the reward programs it creates
Advantages of the Total Reward Strategy
An ideal total reward strategy should foster to develop the critical skills of the employee and also make sure that organizational goals are met. The rewards strategy should be aligned with corporate objectives such that the employer derives several gains by establishing it to its system. Maintaining the reward strategy would be an efficient way of guaranteeing the motivation of employees. Notably, Kwenin, Muathe and Nzulwa (2013) mention that motivated employees is more likely to post superior results compared to those that are not motivated. Besides, a reward system provides a critical tool that employers may gain from employee turnover. Highly motivated employees are likely to post superior results and thus seldom cases of resignation or moving from one workplace to another.
The suggested reward system also provides a long-term and complete scope in which the business can remain in control of its expenses. Occasionally, firms which run rewards programs fail to identify a suitable matrix of expenditure that fits their finances program. Running a total rewards program ensures that the company eliminates non-cyclical spending methodologies that may have an adverse impact on the company’s budget.
The philosophy of a total reward system emphasizes the need to build a system that nurtures all the aspects of an employee. A motivated employee receives training, competitive remuneration and is considered as an ideal candidate for job promotion (Bussin & Van Rooy, 2014). Nonetheless, competitive pay remains the foundation upon which a total reward system is created. As a result, once the base pay is attained, it becomes easier to enhance the productivity of the employees and keep them engaged. Kwenin, Muathe and Nzulwa (2013) gives a detailed example whereby it was identified in a survey that engaged employees are more productive by 20% compared to average-performing employees. Thus, the total reward system will be a useful methodology to help the employees remain engaged and focused in their roles within the organization.
Key Communication Components of a Total Reward system
Communication plays a vital role in ensuring the success of the operations of a firm. An ideal total reward system must communicate the specific attributes of its program. It will make sure that the beneficiaries of the reward system have adequate information regarding the gains that they stand to receive when they are employees of the firm. The total reward system is a critical component of analysis for a majority of the employees who wish to work in ay firm. Thus, highlighting any elements of the package and the terms and conditions that govern its issuance is essential for the employees.
The total Reward system must also communicate its strategies and objectives based on the abilities of the engaged managers and hence the company. The managers must have adequate information on how the reward system will stimulate the engagement of the employees and most importantly, apply it to their day-to-day activities. It is also imperative that the value of the intangible elements in the reward strategy be highlighted (Bussin & Van Rooy, 2014). The values will be ideal for enabling the managers to improve recruitment and retention and most importantly boost the performances of the employees. Conclusively, Bryant and Allen (2013) offer advice that the ideal communication components will aim at winning hearts and minds, promote the good feel elements about their work and provide a range of illustrations that would be of interest to specific sets of employees in every department. The motivating factors may differ amongst individuals. However, an acceptable level of a total reward can be considered and deemed appropriate, to help measure the productivity of the employee.
Strategy for devising competitive pay structure
An organization’s financial position plays a crucial role in defining its pay structure. Similarly, an evaluation of the industry’s position with regards to the provision of compensation and pay will be ideal for providing relevant information on the pay structure that a firm should adopt. Deloitte is known for being one of the best talent retainers and developers. Its competitive pay structures stem from its ability to measure the talent and the work was done to develop a feasible formula to come up with the ideal pay structure. The pay structure at Deloitte will thus be dependent on the qualifications of a candidate with regards to the work done. Therefore, an employee will be compensated based on their work proficiency rather than academic credentials (Bussin & Van Rooy, 2014). The years of experience also play an instrumental role in defining in enabling a firm to design the appropriate pay structure for its employees (Özutku, 2012). Given the above considerations, Deloitte can then adjust its pay to just above the industry’s average. The strategy will ensure that it has the best pay structure that will enable it to retain its top talents.
Conclusion
Deloitte mentions that tying its reward system to talent, performance, and rewards play an instrumental role in shaping the way its employees learn, lead, and collaborate. The talent market experiences a high demand, which also has a significant impact on the way firms retain their best employees. Deloitte ensures that it continues to reinvent its programs as a strategy to ensure that it keeps up with the demands of the changing employment markets. The uses of performance management programs have been instrumental in shaping the firm’s ability to retain the critically needed talent. It also ensures that it charts the way forward towards the creation of new strategies that would ensure the organization employees support the broader business perspective. Deloitte’s talent strategy entails the creation of processes, infrastructure, and activities that are related to measuring and rewarding the performance of employees. The organization also emphasizes that the plan is instrumental in ensuring that the appropriate person with the right skills in the proper role is placed in a particular position. The method is instrumental in facilitating the attainment of organization objectives, building resourcing and management competency and most importantly, for further development of compensation and benefits associated with succession planning. Most importantly, the plan provides a framework for the assessment and development of the leadership competencies of its employees.

References
Bryant, P. C., & Allen, D. G. (2013). Compensation, benefits and employee turnover: HR strategies for retaining top talent. Compensation & Benefits Review, 45(3), 171-175.
Bussin, M., & Van Rooy, D. J. (2014). Total rewards strategy for a multi-generational workforce in a financial institution. SA Journal of Human Resource Management, 12(1), 1-11.
De Gieter, S., & Hofmans, J. (2015). How reward satisfaction affects employees’ turnover intentions and performance: an individual differences approach. Human Resource Management Journal, 25(2), 200-216.
Deloitte Development LLC (2017). Total Rewards Practices Survey Detailed Response Analysis. Retrieved online from https://www2.deloitte.com/content/dam/Deloitte/us/Documents/human-capital/us-cons-total-rewards-survey.pdfHoole, C., & Hotz, G. (2016). The impact of a total reward system of work engagement. SA Journal of Industrial Psychology, 42(1), 1-14.
Kwenin, D. O., Muathe, S., & Nzulwa, R. (2013). The influence of employee rewards, human resource policies and job satisfaction on the retention of employees in Vodafone Ghana Limited. European Journal of Business and Management, 5(12), 13-20.
Özutku, H. (2012). The influence of intrinsic and extrinsic rewards on employee results: An empirical analysis in Turkish manufacturing industry. Business and Economics Research Journal, 3(3), 29.