Total Reward Metrics

Total Reward Metrics


Human Resource Management has developed from the traditional personnel management and is now a part of the larger management strategy used within an organization. Many things have changed from the performance point of view, and Total Reward Metrics have been utilized to measure the magnitude of such changes. Total Reward Metrics connects the changes with the expected outcomes and actual results in an organization so as to give a picture of how effective it is upon its implementation. Some of the elements of Total Rewards Strategy make it possible to measure returns on investment. Total Rewards Strategy Metrics may encompass the number of workers that have been admitted to a particular career, decreased turnover rate or increase in candidate’s acceptance offers, involvement in specific tasks, and the retirement program. Compensation and remuneration planning, job classification, and benefit planning are some of the most common rewards that measure the effectiveness of an organization (Bonham, 2008). This paper will assess some of the metrics, which weigh the degree of change that determine he achievement of some organizational goals.


An organization is a system of social entity that has a collective goal and it may be composed of religious, social, or maybe academic groups. Some examples of organizations are government bodies, schools, churches among others and the function of every organizational member is to make sure that their respective organization attains its objective. These organizations must therefore have values, and code of ethics which guides members in their conduct and activities (Daft, 2010).

Current and Future Challenges Facing Organizations

One of the current challenges that face organizations is globalization. The cliché that the world is getting smaller has turned out to be dramatically true for today’s organizations. This is in line with the rapid changes in technology and communication which have reduced the time it takes to exert influence in the world compared to the former times when communication was poor. Even the most remote areas now have access to influence from across the world, and can get news from even the most developed area. The distance between different locations has been reduced from years in the olden days to only seconds now (Daft, 2010).

Intense competition is yet another challenge that currently faces organizations. Despite the fact that the growing global interdependence creates advantages, it also implies that the environment for companies and organizations is growing more competitive than ever and companies now choose to outsource goods and services, which can be beneficial to the organization. Lastly, organizations today experience the problems of ethics and social responsibilities. Today, managers in different offices face tremendous pressure from the government and the public to uphold integrity and guide their organizations and employees in high ethical and professional standards (Bonham, 2008).

One of the future challenges that organizations are expected to face include the digital working place. Technology is changing at such a rapid rate that in future everything in the work place will be digitalized. Organizations are likely to be engulfed by information technology and this will totally affect how these organizations will be designed and managed. Sales, for instance, are currently taking root in technology and online shopping has become the order of the day. Most organizations will have to alter their business strategy and conform to the system if they intend to remain relevant in the business world. In addition to that, organizations will also experience economic challenges in the future due to high rates of inflation. Inflation is affecting the world slowly and the living standards have continued to rise. This will ultimately lead to employees demanding salary increments and organizations will be facing a challenge especially if they have little income generation as they will have high employee turnover rate (Daft 2010).

For organizations to remain successful, they will first have to conform to the changes in technology that pose a threat to the orthodox and conservative enterprises. Organizations will have to invest in current technology and alter the design and organizational management. For instance, business organizations will have to alter their strategies to pure online and pure traditional delivery in order to accommodate all kinds of customers. Organizations will also be compelled to train and develop the skills of their employees to make them a competitive force in the team of management. They will also be forced to retain their best employees and offer them high and competitive compensation (Thompson, 2003).

Reward Metrics

There are diverse types of reward metrics that an organization can employ in order to compensate its workers and one of the common ones is the total compensation. This is linked to measures that affect the employee salary benefits. Organizations are evolving from the fixed rates of salaries that they offered during the old personnel management times, to the current compensation where performance is considered more and actually determines the benefits that an employee receives besides the salaries. Employees are also given allowances, in addition to the salary. Some of non-monetary compensation offered may include training by delegation and other forms of training, performance appraisals, off days as well as health cover. These measures are established in order to ensure that employee turnover rate, and other costs related to employee turnover rate like hiring, training and development costs are kept at a minimum (Thompson, 2003).

Another metric that organizations will have to put in place in order to survive is the benefit planning metric. This will be composed of the main benefits that make employees comfortable and contribute to job satisfaction. Medical coverage, sick leave and disability insurance are some of the non-monetary benefits that an organization can provide for its employees (Daft, 2010).


Ultimately, the Total Reward Metrics helps to assess if the organization is moving towards the right direction in terms of attaining its objectives and goals. Human Resource Management has eased the attainment of objectives for the organization and has been advocating for efficiency so as to ensure that organizations employ the right number of persons with the right qualification for the job. Consequently, the efficiency reduces costs and increases the revenue as well as productivity (Bonham, 2008).


Bonham, S. S. (2008). Actionable strategies through integrated performance, process, project, and risk management. Boston: Artech House.

Daft, R. L. (2010). Organization theory and design. Mason, Ohio: South-Western Cengage Learning.

Thompson, J. D. (2003). Organizations in action: Social science bases of administrative theory. New Brunswick, NJ [etc.: Transaction Public host.