Sample HR Management Case Study Paper on New and Improved Rewards at Work

New and Improved Rewards at Work

The rewards and the incentives in the workplace accord benefits not only to the employees but also to the employer. When employees are recognized for their stellar morale and performance, they tend to have an increased morale towards work, their job satisfaction rates increase and they get more involved in the organizational functions. Employers benefit more from this situation since they experience greater efficiency by having high levels of sales and productivity. When there are workplace incentives and rewards, both the workers and employers enjoy a productive work environment that fosters positive communication and coherent understanding (Gerhart & Rynes, 2003). It is with this concept in mind that employers are always coming up with innovative employee rewards to boost morale and acknowledge the needs of workers for personal goal accomplishment and creativity. The research determines how innovations in employee benefits improves the overall competitive compensation strategy of an organization, how innovative benefits can be tied to particular jobs, criticisms of the effectiveness of equity-based rewards systems versus those with more creative approaches, essential elements for integrating innovation into traditional total rewards program and recommendations for processes that optimize employee-based suggestion program that can continually refresh the total rewards of the organization.

  1. How innovations in employee benefits improves the overall competitive compensation strategy of an organization.

Innovations in employee benefits improve the overall competitive compensation strategy of an organization by ensuring that their changes occur with those that are happening within businesses in the same industry. Employees often have varying needs and corporations need to make sure that their employees can keep working while benefitting from the comprehensive benefits that are being offered. While meeting that objective, they tend to find innovative ways of engaging their employees that encourages them, supports their commitment, and ultimately improves their performance.

Innovations in employee benefits help corporations to have a thorough understanding of the diverse needs of their workforce and address them in a unique way to maintain a competitive advantage. For instance, over the past years, there has been a dramatic increase of women from different ethnic backgrounds getting into the workforce. Organizations, when designing their competitive compensation strategy need to consider that there are dual focus workers who are not only considering their employment needs but also those of their families. Employers should, therefore, design benefits that encourage these employees to perform optimally at work while meeting the needs of their families. Corporations that tend to consider the personal needs of their employees when it comes to innovations in employee benefits tend to have an improved competitive advantage as compared to those who do not (Boudreau, Jesuthasan, & Watson, 2011).

It is imperative for employers when innovating novice employee benefits to consider the fact that employees consider those benefits before seeking employment, and they can create sustainable competitive advantage if properly structured. When employees are being taken through the recruitment process, they often want to gain more insight into the innovative benefits that company is offering to see if they can manage not only their personal lives but also their work. When these benefits are lacking, employees might want to leave because they do not feel that the job satisfies them enough. The benefits have a huge impact on the way employees feel about their jobs and can either influence them positively or negatively. It is imperative that companies create innovative benefits for their workers or else they will lose their competitive advantage in hiring and retaining a talented workforce.

When coming up with innovations in employee benefits, employers have to focus on offering benefits that go beyond what employees think is standard. There are standard benefits that most people will consider as a priority, and they include pensions, life insurance, dental, and medical. Corporations that are keen on maintaining a competitive advantage need to go beyond these standard requirements and offer extra enticements like gym memberships, use of the internet for personal use, instituting controlled napping policy, or even opportunities to work from home (Boudreau, Jesuthasan, & Watson, 2011). Such innovations generally improve the overall competitive compensation strategy of an organization encouraging it to attract more talent and retain them.

  1. How innovative benefits can be tied to particular jobs.

There is a need to tie innovative benefits to certain jobs in a bid to ensure that one retains talent for proper growth and development. An innovative benefit is providing flexibility where employees can have flexible schedules as a valued reward of their job. If an employer within the communications agency industry notes that its employees have to commute long distances to work, it can offer 10-hour workdays with Fridays being an off day. Employees within the sector can also set up home offices where they can do their work from home, send their reports online, and only travel to the office when there are meetings. This package cannot be offered to everybody, for instance, production workers since they do not have the machines to work with at home. Accountants can work from home as they can do their books provided they have all the materials needed to do so. Another form of flexibility that can motivate employees is the freedom to dawn casual dress codes provided they are clean, not torn, and free from offensive graphics or slogans. PR professionals are usually allowed to wear casual wear, but they should always be ready to wear something presentable in case a client shows up and wants to meet.

The technological industry has witnessed a constant uprising of young IT professionals who are aged between 20 to 25 years old and who love to play as much as they work hard. An innovative benefits package for them is game rooms that should contain classic and arcade games. These techies tend to find inspiration when engaging in gaming activities and they prefer to work in institutions that give them an opportunity to participate in fun activities while working. Employers like and Double Encore encourage their workers to have fun in a bid to improve their ingenuity and commitment levels. The game rooms bring people together especially those that do not often interact on a daily basis. They assist in fostering teamwork and creating a subculture that is solely focused on meeting company’s collaborative efforts.

It is imperative for employees to consider that they need to tailor benefits plans to specific needs of every employee working within the organization (Heneman, 2007). For instance, retirement benefits and health care benefits are not as important to young employees as compared to those who are aging up. Different departments in the organization engage with different apparatus that can pose a threat to their physical abilities like those employees who have to stare at their computers throughout the day. The corporation can provide such employees vision insurance to ensure that they can get protective gear for their eyes and mitigate on any long terms effects due to the nature of their work. If such employees tend to work on their desks throughout the day and do not move a lot, then the employer can provide them with gym memberships so that they can unwind after work and maintain a healthy lifestyle.

  1. Criticisms of the effectiveness of equity-based rewards systems versus those with more creative approaches.

Equity based rewards systems are what an employee expects to receive in terms of monetary terms as wages for their workforce. They often include salaries, commissions, paid leave, bonuses, and even profit sharing with the company. Innovative benefits, on the hand, refers to the part of the total reward package in addition to direct pay that does not necessarily flow to the employee in monetary terms but accord them certain services that employers have already paid for. These benefits often include pension plans, health club memberships, subsidized meals, company car, and life insurance cover. Employers often utilize the equity-based rewards system because they intend to inspire their employees to get to new levels of performance to benefit from such packages like stock options and awards. Essentially, the equity-based compensation plan aligns the interests of all stakeholders in the corporation that is the employees, shareholders, and the corporation. When there is an equity based rewards system, companies can build on employee motivation and conserve on resources like cash, get tax advantages, and retain their employees. However, there are certain criticisms that have been made against the equity based system of motivation that is highlighted on below.

Granting stock to employees in a bid to motivate them is often criticized because it can also be a source of demotivation to the same employees. Often the recipients of stocks do not have an idea of how to value and have realistic expectations on the trend of stock gains or losses (Robbins, 2016). If the value of stocks keeps dropping consistently, these employees can be demotivated to work and serve the company as well as they are supposed to. Furthermore, the market price of stocks cannot be linked directly to the performance of an employee who owns shares thus not making it a proper motivating factor. It is often better to use creative approaches to supplement the cash compensations that employees receive as opposed to utilizing equity. This is because innovative approaches to rewards create commitment within employees in that they let them live their lives, spend more time with their families, and shows them that the organization they work for does indeed care for them (Werner, 2005).

  1. Key elements for integrating innovation into the traditional total rewards program.

There are abundant studies that show that employee engagement is quite critical to the performance of businesses. The traditional total rewards programs do not necessarily drive employee engagement, but innovative benefits provide them with intangible rewards that satisfy them. Satisfied employees tend to be more productive than those who are unhappy and modern organizations need to realize that it does take more than money for employees to be happy (Werner, 2005).

The traditional rewards program often include salaries and health benefits that need to be included in a total rewards system. Organizations need to offer competitive base salaries and flexible pay options that can be customized to their individual needs. Innovative programs need to be integrated into the total rewards program that can include adoption assistance, peer support groups, pagers for expectant fathers, and proper career planning. Policies and benefits can include flexible work arrangements, group insurance policies, company car and even gym memberships according to the organizational culture. An example of a company that has integrated innovation into a traditional total rewards program is Google that allows its employees to bring their dogs to work, and they can still play pool while working. Such an initiative has made the company among the best corporations to work for as they attract, retain, and motivate employees.

  • Recommendations for processes that optimize employee-based suggestion program that can continually refresh the total rewards of the organization.

The process that I would recommend is one that can optimize an employee-based suggestion program to constantly refresh the total rewards of the organization and focus on business markets that can offer significant growth opportunities, increased revenues, and the opportunity for organization leadership. The process should include technological change so as to positively make an impact on the products and services that are being offered. The process should be able to attract and retain the motivated and talented employees that are committed to the aspirations of the organization and who help them be a market leader in their industries (Heneman, 2007). Such a process can add value to the customers by making available broad ranges of mission-critical, cost effective, and computer transaction processing and information services on a global basis to selected markets. The process should be committed to providing excellent services to outstanding employees, which can be the organization’s key to success. It should produce leadership within individuals, seek to achieve and maintain a market-share leadership, and commit to maintaining high levels of financial and corporate controls. In order to optimize an employee-based suggestion program, it is imperative to continually refresh the total reward of the organization. The organization should commence with a shift in philosophy where the workforce is treated as a portfolio of integrated investments that have different yet complementary desired outcomes (Heneman, 2007). The process should accurately determine and quantify the total investment in a workforce program and ensure that it is in line with the business needs and financial realities. Finally, the process should create a framework that can adapt quickly and efficiently to changes in the business strategy and workforce composition in employee segments across business divisions in all countries.


Boudreau, J. W., Jesuthasan, R., & Watson, T. (2011). Transformative HR : how great companies use evidence-based change for sustainable advantage. San Francisco, CA: Jossey-Bass.

Gerhart, B. A., & Rynes, S. L. (2003). Compensation : Theory, evidence, and strategic implications. Thousand Oaks, CA: Sage.

Heneman, R. L. (2007). Implementing total rewards strategies: A guide to successfully planning and implementing a total rewards system. Oklahoma: SHRM Foundation.

Robbins, S. (2016). Is Equity-Based Compensation a Good Thing? Retrieved from Steve Robbins Website:

Werner, S. T.-M. (2005). Organizational Governance and Employee Pay: How Ownership Structure Affects the Firm’s Compensation Strategy. Strategic Management Journal, 377-384.