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Total Rewards Strategy Scenario Analysis

1. What are the key issues/problems impacting the design of the total rewards program?
(Create a issue/problem list)

2. How can these issues/problem be prioritized? (Rearrange issue/problem list in order of priority)

3. What do you hypothesize to be the root cause(s) of the issues/problems?

4. What could you offer the employees in a total rewards program that would be desirable and different from the competition based on question 1, 2, and 3? (Brainstorm a list of possibilities)

5. Based on your list, what benefit options would be most advantageous and which might be challenging or detrimental?

6. Based on your evaluation of your list of options, what is your recommended total rewards program?

7. What is the strategy for effective administration of the recommended total rewards program?

8. How does the total rewards program support the overall organization’s strategy?

9. How will the total rewards program be able to flex with market changes?



Rewards systems are commonly used by organizations to offer monetary and non-monetary perks to employees with the aim of enhancing organizational value amongst the stakeholders. Generally, these systems are upheld by five essential pillars, including, compensations, flexibility, career development, benefits, and performance recognition (Kang & Lee, 2021). Considering the value of these pillars in the success of comprehensive reward systems, this piece will apply them to offer a clear evaluation of the Total Rewards System implemented by Company X.

Key Problems Impacting Company X Total Rewards Program Design

  • Lack of Employee TrainingThe lack of employee training on matters pertaining to the total rewards program is quite evidenced in the fact that they found the pay for performance programs to be quite confusing. It is fair to highlight that this problem demonstrates the program’s failure to safeguard the performance recognition pillar of the rewards system (Rose, 2018).
  • Inadequate Compensation Software­ As highlighted in the case study, the HR managers found this program’s compensation software quite inadequate, which made it hard for the employees to enroll for benefits in a desired manner. Noteworthy is the fact that this problem is linked to two fundamental pillars of total rewards programs, including, compensations and benefits (Rose, 2018).
  • Lack of Career Development­ The technological aspects of this rewards system made it hard for employees to complete their online training. When placed into perspective, this problem jeopardized the career development pillar of the program (Rose, 2018).
  • Lack of Data Driven InsightAs highlighted in the case study, the reward system did not provide necessary data-driven insights with respect to underlying workplace issues and potential solutions. It is fair to allude that this problem reflects the system’s lack of flexibility. Without relevant information, a total rewards system cannot be fine-tuned to the organizational goals in an effective manner (Rose, 2018).

How Can the Problems be prioritized?

  1. Inadequate Compensation Software ­First, the software should be designed in a way that captures all elements of an effective total rewards system, especially, benefits and compensations.
  2. Lack of Employee Training – Once the system is designed, employees should be given sufficient training on how to utilize it to enhance their interaction with the company.
  3. Lack of Career DevelopmentThe program should be measured to ascertain whether it is delivering value to the employees’ careers.
  4. Lack of Data Driven Insight Once everything is in place, the program can be evaluated to determine whether it is effective
  • Career development programs – On-job training is a unique way of boosting the careers of employees while maintaining their financial security.
  • Compensation – Incentives should be used together with merit-based payments to ensure that employees strive to achieve higher outcomes.
  • Increased autonomy and participation in decision-making processes ­– When employees are more involved in organizational matters, they are highly likely to understand its programs.


  • Health and welfare benefits. This type of benefits are considered advantageous since they promote health, safety, and general wellbeing among an organization’s employees.
  • Life insurance. This benefit focuses on reimbursing employee’s next-of-kin in the event of death.
  • Retirement Plans. These plans often revolve around compensating employees for their dedication to an organization


  • Paid time off. While this benefit usually holds immense value when employees are faced with personal challenges such as increased parenting obligations, it can be misused by lazy workers.

Recommended Total Rewards Program

            Considering the options listed above, the most appropriate total rewards program should focus on providing health and welfare benefits. Such a bold claim is inspired by the fact that this type of benefits covers a broad range of perks, including, health coverage, career development, and financial rewards among others (Kang & Lee, 2021).

Strategy for Effective Administration of the Recommended Total Rewards Program

            Given the scope of the described total rewards program, it is convenient for the HR manager to implement an overarching human resource management strategy. Typically, this type of strategy focuses on integrating key stakeholders in the design and implementation of organizational initiatives that hold immense value. It is quite instrumental in human resource management since the primary goal of HR is to attract, augment, and maintain competitive talents in the organization (Kang & Lee, 2021). In the wake of such a realization, the health and welfare benefits can be implemented by ensuring that each relevant stakeholder is represented in the decision-making and implementation phases. The employees should have a direct impact on the types of perks that will be included in the program. This kind of integration ensures that a significant portion of the workforce partakes in the process, thus facilitating success. Notably, effective communication is a key element of this strategy, so the management should create an environment where information flow goes both upwards and downwards to enhance flexibility and growth.

How the Total Rewards Program Supports Overall Organizational Strategy

            Company X’s overall organizational strategy revolves around the provision of customer-like experience for its employees. Satisfactory dealings with employees often results in high productivity, which then reflects in commendable market positioning (Kang & Lee, 2021). On this note, the total rewards program supports this organizational strategy by upholding the employees’ value in the human resource management processes. It suffices to argue that a competitive reward system is highly likely to attract, develop, and retain talented workers.

How will the Total Rewards System Flex with Market Changes

            Adaptability is a fundamental factor when discussing any human resource management concept, including the total rewards system. Company X’s total rewards program is highly likely to flex with market changes as it incorporates the perspectives of various levels of employees. This kind of approach ensures that information flows across the relevant stakeholders in a real-time manner. Therefore, the key goal for the HR manager is to promote effective communication so that the stakeholders will manage to identify and adapt to market changes promptly.


            After thoroughly exploring the total rewards program described in the assigned case scenario, it is apparent that Company X has to make significant changes on its system to facilitate growth. The program should be revisited in a manner that prioritizes fundamental elements of the reward system. Noteworthy are the key pillars of a comprehensive reward program, including compensations, flexibility, career development, benefits, and performance recognition. Any changes implemented with the aim of safeguarding this organization’s human resource should be in line with these pillars. The proposed health and welfare program takes each of these elements into consideration, by ensuring that employees have an elevated experience of their work.






Kang, E., & Lee, H. (2021). Employee Compensation Strategy as Sustainable Competitive Advantage for HR Education Practitioners. Sustainability, 13(3), 1049.

Rose, M. (2018). Reward management: A practical introduction. (2nd ed.). Kogan Page Ltd.

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