Previous weeks article introduced the concept of total reward and it’s objectives.
Today we will be outlining how different components of total reward satisfy different needs in Maslow’s pyramid. The components of total reward include; Compensation, Benefits, Wellbeing, Recognition, and Development.
Compensation - This refers to base pay (base and variable) that employers provide to employees in exchange for skills applied, time given, targets met etc. towards achieving an organization’s mission and strategic objectives. Compensation allows employees to attend to their physiologicalneeds like, food, clothing, shelter, etc.
Benefits - These are the indirect and non-cash compensation paid to employeesover their salaries and wages.These packagesenhance employees physical, emotional, and familialsafety. The most basic types of employee benefits are health, dental, leave plans, life and disability insurance, and retirement plans.
Well-being - Employee wellbeing has become more critical for employers to attract and retain employees. More and more people recognize the need for holistic wellbeing to be satisfied, healthy, and motivated in life. As a result, employees are expecting organizational cultures to promote employee wellbeing. Organizational cultures that value and promote employee wellbeing may be characterized by:
Recognition - People want their achievements to be recognized. Recognition programs can take the form of:
While all employees may not need these types of recognition, all employees need respect in the workplace.Respectis a form of recognition that all employees need to maintain a sense of dignity and psychological safety in the workplace.
Development - Employers who invest in employee development programs are investing in theself-actualizationof their employees. We are all endowed with gifts and talents. Through education, training, mentorship programs, and relevant work experience, these gifts and talents equip employees to become more competent in their roles. In other words, these career development initiatives enable employees to advance within the organization to realize their full potential.
What other ways not in this article can employers utilize to satisfy the maslaws pyramid of needs?