Considering today’s ADCO’s challenges, we need to develop a proactive “total reward strategy”. The concept of Total Reward Strategy (TRS) emerged in the 1990’s as a new way of combining the tangible and intangible rewards to attract, motivate and retain employees. The TRS is a holistic approach that incorporates financial and non-financial rewards. The objective is to engage employees to improve the company business results, through a strategic combination of different financial and non-financial elements, as presented in the Joint OPCO’s meeting of 24th June 2008. In this light, the TRS is what makes an employee wants to work for ADCO with an ultimate objective to improve the Organization and the individual’s performance.
Definition of TRS Components
The TRS is the monetary and non-monetary aspects of ADCO policies, programs and practices provided to the employees and perceived as valuable by them in return for their time, efforts, talents, behaviours and results. It is about the effective integration, combination and leveraging of the following six (6) components to attract, motivate and retain the talent required to achieve the desired company’s competence and results.
It is the Pay/Cash provided by ADCO to its employees for their rendered services (contributions, time, efforts, skills and competencies). It includes both fixed and variable pay as well as any short or long term incentive pay, such as basic salary, supplementary allowance, general allowance, etc.
“People might not get all they work for in this world, but they must certainly work for all they get.'
Benefits are any programs developed by ADCO to supplement the cash compensation and provide security for its employees and their families. It may include monetary and non-monetary benefits, such as Leaves, Medical, Insurance, Housing, Pension Scheme, Car Loan, etc.
3. Workplace Environment
Any programs developed by ADCO regarding working conditions and ensuring a safe and a healthy workplace, such as safety rules and regulations, ergonomic programs, etc.
4. Performance & Recognition
Any practices, policies and programs developed by the Company to align the organization units and individuals’ efforts towards the achievement of the Company’s corporate objectives, such as performance management and appraisal system, PCR process, etc.
Any forms of formal or informal acknowledgement by the Company of employee’s actions, efforts, performance, attitude and behavior. It contributes to reinforce certain desired behaviors, in line with ADCO Core Values, while meeting employees’ intrinsic psychological need of appreciation. It can be cash or non-cash, such as verbal recognition, thankful letter, trophies, token, vouchers, lunch/dinner parties, employee of the month, etc.
5. Development & Career Opportunities
Development: Any program developed by ADCO to enhance employees’applied skills and competencies, in order for them to perform better, such as OJT, cross posting, temporary assignments, Universities, HCT and ATI courses, tuition assistance, forums, conferences, seminars, self development, examination leave, etc.
Career Opportunities: Any program developed by ADCO to enhance employees’ advancement
towards career goals, such as Career Ladder, Succession Planning, Cross Posting, Overseas Assignments, etc.
“Let the path be open to talent.”
6. Work-life Balance
Any program developed by the Company to balance its employees’ personal life and work, to improve their productivity, creativity, achievement and enjoyment, such as
flexi-time, health & well being, financial support, community involvement, etc.
The attached table constitutes ADCO Rewards Platform or Map or Matrix that needs to be tuned from time to time. The elements of each component should be balanced and adapted to the desired reward to achieve business results. The list is not exhaustive and will continuously be reviewed/updated taking into consideration all the possibilities for promoting them in the workplace.
It needs to be aligned with strong talent development programs and processes that encourage internal sourcing of candidates; i.e. promotion and recruitment from within the Company and at the bottom which in return reduce the expensive recruitment costs, ease the management of individuals already aligned with the Company’s culture and business priorities (retention) and lead to an increase of the ROI.
“Many companies have long contended that stress in the home causes productivity loss in the market place.. and it does.
But research now reveals that stress on the job causes stress at home. In other words, they feed off each other.”
Example of differentiating rewards meaningfully:
Salaries & benefits can be based on performance and/or job levels; i.e. higher rewards for "O" and "E" performers and/or "critical" or "key" positions/staff.