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Design for Total Rewards Program

Paper Type: Free Essay Subject: Human Resources
Wordcount: 3392 words Published: 8th Feb 2020

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The Total Rewards Program is essential for Human Resource management in order to be able to track their employee’s performance and work ethic. Organizations should establish a TRP that match their vision, mission, culture and core objectives in order to ensure sustainability of the program. An effective total reward program is important for any organization as it increases the ability to retain, attract and develop employees within an organization. Therefore, Human Resource management has become a big part of the strategy in organizations and is the role of the top executive in each organization regardless of the size to understand their may be a need for implementing the total rewards program as well as developing measures or metrics to monitor and evaluate the program. Organizations have used total reward metrics to measure the magnitude of the changes that human resources should follow in order to achieve improved performance and retain the most talented workforce for the organization (Brenoff, 2017).

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The purpose of this paper is to provide a total rewards program for the company and establish metrics to evaluate its effectiveness as well as provide an implementation plan and timeline for acting on the total reward program. In addition, any organizational analysis for the company will be used to establish its key goals, capabilities, objectives, challenges and core competencies. This paper will also provide workforce separating within the organization by establishing the different motivational influence in terms of flexibility, potential growth, career development, enhancing team success and personal expertise as well as low and high-income obligations. This also provides changes for the total rewards program and recommendations for ensuring good implementation of the program. Therefore, it is beneficial for every organization to establish a total reward program to be effective and viable. Management should be able to establish effective metric measures to track and monitor any success of the total reward program.

Description of the Organization

An organizational investigation is the process that characterizes different types of organizations such as labour unions, business firms, government agencies and voluntary associations like charities, political parties and sports’ clubs. On top of achieving any organizational change, it is both a managerial and cognitive challenge. This assignment focuses on the SAS Institute which has customers in about 149 countries and was easily recognized among the top 100 companies by Fortune Global in 2017! This company focuses on the globalization, in hopes to develop and deliver global inventive software/services which can capture and grasp customers through competitive gratification.  SAS also focuses on delivering tested solutions that drive the cutting edge but also improves the performance of the business itself. The company has managed a low-cost model by cutting costs and prices. The goal of SAS is to have similar, if not identical marketing strategies across each country that they invest in. SAS’s overall big strategy focuses on the increase in demand for any innovative software which will allow the company to have an amazing opportunity for all data analytical businesses to expand their market across all countries. Therefore, a total rewards program for the company is very beneficial for the organizational performance. The total reward system or program should aim to reduce the number of employees working for the company and utilize the remaining workforce in order to realize the cost of advertising for the communication strategy (Great Place to Work, 2017).

Organizational Capabilities

The SAS Institute has core effectiveness that have allowed the organization to earn global recognition in software development and ground work of real-time solutions for its customers. The company has capabilities in innovative technology, products’ quality, worldwide presence, a growing customer base, international brand recognition and continuous annual growth. These core capabilities of the organization have enabled the company to establish global recognition for its products as well as expanding to many countries in the world. The increase in the global branches have made the company focus on Human Resource management which is a key component of the overall strategy of the organization. SAS builds on its success through the acceleration of the pace of progress throughout its business.

Workforce Competencies

The company has a large workforce which provides services across different countries in the world. The human resource department of SAS focuses on building employees’ competencies by establishing different total reward programs to attract, retain and acquire top talents in the market. SAS has its human resources focusing on requisite competencies such as customer focus, trustworthy, creativity, decision makers, ethics, and values, motivating others, drive for results, effective team building and strategy as well as priority setting. Besides, these employees’ competencies have enabled SAS to establish a dynamic workforce across various countries with similar traits and focused on an organizational culture that yields maximum outcome as well as improving performance. Therefore, the company should design and execute a total rewards system that will improve the performance of the organization by considering the non-monetary factors that can lead to improved performance.

Organizational Challenges

SAS is one of the leading companies in technology and innovation. The SAS institute continues to grow in different countries in the world. This growth and expansion has seen the company go through a large workforce and more potential for cyber-attacks and fraudulent actions. Besides, SAS has daily growth in competition due to the increase in number of multinational companies in the industry. The company’s top executive has suceeced above all competitors in regard to the services provided. The company faces future challenges of CEO retirement which could severely impact the management performance and the ability to adapt to changing business markets of today’s technology. However, the company faces their  increased challenges in the future which could really impact the company performance significantly. These future challenges include “brand management, customer relationship management, core competency management, software management, and quality as well as product development management.”

Total Reward Program and Current Systems for the Organization

These Total rewards programs are the techniques used by management to attract, motivate, and keep employees of an organization. Therefore, total rewards includes all tools that employees identify to be of value resulting from the employment that leads to improved performance. A total rewards program is important for solving the organizational challenge of attracting, motivating and retaining employees. In addition, a total rewards programs by managers such as compensation, work-life effectiveness and recognition, promotion and career development metrics (Ellis, 2015). These components define the strategy for Human Resource management to attract, motivate and engage the workforce for a long time. A total rewards program is an big component of the human capital process that has the purposes and objectives of organizing employees through effective measures such as compensation planning such as rewards, job classification, and benefit defining. Management should establish total reward metrics to measure the changes as well as the expected outcomes of the company. A total rewards program used by SAS are effective in improving organizational performance and gaining new talents in the labor market. The total rewards program by SAS Institute can focus on employee parting in order to identify their key differences. This is important for the organization because employee growth and career development as well as effective workforce create a competitive advantage for the organization.

Evidence shows that programs for employees make the team more close-knit and its contributes to improved performance. Any non-monetary rewards enhance job security and create trust for the top management as well as the job satisfaction through management accessibility, communication, efficient feedback and reporting to employees. Developing a good total reward system is important as it creates work relationships which is shown to have improved performance. The total rewards program should have a deep evaluation of employees’ preferences in terms of non-monetary rewards because workers who move from one firm to another quickly prioritize the work environment, while other prefer career development.

The SAS rewards program’s on-site day care, medical services and free access to fitness and recreation centres, enhance employees’ performance and make the workforce more dedicated to achieving organizational goals. These employees’ benefits are provided for business purposes and to help the company to enhance its culture and allow them to feel like they have the ability to get things done. SAS has established organizational culture resulting in loyal workers who care about the well-being of the company.

Workforce Segmentation

Employees’ parting is very important during planning  and implementing a total rewards programs in an organization. This is because different workforce groups will have different preferences regarding the non-monetary benefits as some will prioritize work environment, while others will emphasize on career development (Brenoff, 2017). Any decent reward program usually focuses on organizational performance and market rates as well as ensuring that the reward strategy motivates, attracts, retains and incentivizes for the best talent.

Segregating the SAS Institute workforce requires analyzing its core competencies and capabilities. SAS as an established model workforce environment and a total rewards program which are designed to retain employees, allow employees to focus on their roles as well as reduce the costs to operate. The total rewards program for the organization provides on-site services such as free or subsidized healthcare, day-care, a gym and life counselling and other programs such as car parking, direct deposit, employee recreation and promotional services. Considering that SAS operates a simple organizational structure, it makes it easy for any employees to change their roles as well as allowing managers to be involved in day-to-day work with the workers. The company has created a flexible working environment where employees are autonomy and can pursue experimental product ideas (Hung and Wang, 2017).

The total rewards program should segment employees according to their skills, experience, and expertise and decide non-monetary incentives for the organization. Besides, the rewards program should separate employees on high potentials as well as employees with high turnover from the rest of the workforce population. This will be important for the company to implement programs such as career development opportunities, a chance to work in an exciting and energizing environment, attractive job designs and opportunities for challenging and meaningful work (Cravens, Oliver, Oishi & Stewart, 2015).

Requisite Capabilities and Competencies

SAS has a requisite capabilities and competencies which allows it to expand in its product line for segmentation of customers and employees. The company has the exciting workforce and is an industry leader providing software solutions as well as consulting services for business analytics, data mining and data warehousing services. The company has requisite capabilities in various segments within communication sector, such as customer management, pricing and revenue, operations and network and data monetization. Therefore, the company has core competencies in analytics, data management, and visualization. These requisite capabilities and competency tracks have allowed SAS to develop product capabilities and value proposition as well as create business intelligence framework. Therefore, SAS is able to establish positioning strategy through the business engagement model to understand the competitive landscape resulting into brand recognition. Thus, SAS has established brand recognition through capabilities and competencies in software development and provision of real-time solutions to clients. However, it is evident that the current needs will change considering the challenges identified in both current and future business environment. The company faces an aging top executive and increased completion from the ever-changing global business environment.

Current Total Reward Program

The current total rewards program for SAS offers on-site day care services and medical services to its employees in order to keep them motivated, allow flexibility and attract new talents to the organization. Management evaluates the benefits using criteria to the company, and the number of employees served. However, because of the changing business environment, the new total rewards program should focus on workforce selection. Proper segmentation of the workforce will allow SAS management to efficiently provide a rewards program that will offer career development opportunities, nonfinancial recognition for good performance, and employee development as well as training (Sammer, 2011).


Establishing a total reward program through employee segmentation is important. Different employees have different priorities or goals and non-monetary rewards can change throughout the workforce population. Therefore, managers must effectively determine what appeals to each employee group. This is because some will focus on the work environment while others will emphasize on their career development. Breaking down the workforce into logical segments will help the management team determine the reward programs in order to engage employees. Management should emphasize and communicate the program of total rewards in order to comprehend employees according to their segments. Management should use different metrics for a reward program to prioritize the performance of employees such as employee recognition, performance appraisal and provision of certain allowances or bonus as well as employee tenure (Groen, Wouters & Wilderom, 2017).

Risks for not implementing the Reward Program

There are risks of not planning a reward program for an organization; A total reward program helps the company to motivate, attract and keep employees. Lack of a reward program can create an environment of an unmotivated workforce which can increase poor employee retention, poor work climate, lack of job satisfaction, lack of organizational direction and poor career development opportunities. The overall strategy of the organization is wrecked and the company aqquires more resources to achieve its goals and core objectives.

Metrics when Evaluating the Total Reward Program

The company should use different types of metrics when evaluating the total reward program such as a talent value model, job recognition, analytical human resource, human-capital facts, analysis for human-capital investment, the number of seminars and training attended, and a talent supply chain. This will allow the company to maintain and earn the benefits of the program and to plan effectively for any change in the workforce. Other metrics to consider will be real-time tests for career development opportunities, workforce productivity and employee engagement in work activities (Mann, 2017).

Implementation Timeline

The planning, designing and implementation of a total reward program is very beneficial and important for each organization. A total reward program will allow the organization to motivate, attract and maintain high-performing and high-potential employees by adding career development or management in the overall strategy. The total reward program should follow the following steps in order to improve the performance of the workforce.

  1. Review the current workforce population and existing job architecture for describing career paths for high-potential workers in order to realize vertical and lateral opportunities.
  2. Create a reward program that reflects the human resources as well as business strategies.
  3. Align competency models with job construction for high-potential employees to understand the execution of work.
  4. Provide a manager with training and tools to assist in identifying and communicating career development opportunities for workers in terms of skills and experience.
  5. Establish metrics for measuring the successfulness of the total reward program.
  6. Establish monitoring and tracking techniques to ensure effecting reward program.


Any non-monetary benefits should help the SAS Institute to design a total rewards program that will motivate, attract and grasp talent. This should be adjusted with the business goals and individual employee motivation in order to be successful. The total rewards program should have clear goals, metrics, and ambitious positioning along with aligning the program with any business goals in terms of company culture, training and career development. Managers should communicate with their employees to satisfy personal desires and assist them to understand the benefits of the TRP. The company should provide metrics to measure and monitor the performance of their employees. It is also important to involve employees during the planning and execution of the total reward program as well as using the external input to incorporate workforce preferences and employee engagement.


  • Brenoff, A. (2017, December 6). 8 Reasons Why This Company Is The Best Place On The Planet To Work. Retrieved from https://www.huffingtonpost.com/2013/11/18/best-places-to-work_n_4240370.html
  • Cravens, K. S., Oliver, E. G., Oishi, S., & Stewart, J. S. (2015). Workplace culture mediates performance appraisal effectiveness and employee outcomes: A study in a retail setting. Journal of Management Accounting Research27(2), 1-34
  • Ellis, R. (2015). Making Learning a Key Element of a Total Rewards Package. Central Michigan University.
  • Hung, E., & Wang, K. (2017). What are the Best in Class Non-Monetary (e.g. Non-Bonus, Non-Stock, or Non-Salary) Benefits for Innovation Based Companies? Cornell University ILR School.
  • Great Place to Work. (2017, August 24). SAS Institute Inc. Retrieved from http://reviews.greatplacetowork.com/sas
  • Groen, B. A., Wouters, M. J., & Wilderom, C. P. (2017). Employee participation, performance metrics, and job performance: A survey study based on self-determination theory. Management accounting research36, 51-66.
  • Sammer, J. (2011). Nonfinancial Rewards: Finding New Ways to Engage. SHRM.
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  • Mann, A. (2017). What Are the Best Employee Perks? 4 Questions to Ask First. Gallup.


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