Total Rewards Package Strategy Chapter

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Total Rewards Package StrategyIntroductionInitially known as Mills fleet farm, Fleet farm, and home is an American company with about 47 stores located in different regions like North Dakota, Iowa, Minnesota, South Dakota, and Wisconsin. It’s headquartered in Appleton, with its central distribution center in Chippewa Falls. The company’s stores are of multiple sizes, from large stores to small hardware store formats (Hiles, 2009). The company deals with household items, fishing, hunting equipment, licenses, automotive goods, small appliances, toys, footwear and clothing, pet suppliers, farm suppliers, food, tools, sporting items, lawn and garden supplies, and paint, among others. Several company sites also have a car wash, gas mart, and auto services. After over 60 years in business, the company has become the most trusted brand in retail.Subsequently, Fleet Farm and Home are concerned about its total rewards package. Most store supervisors and the majors have worked with the company for over 20 years and have been very satisfied with their remuneration plan. Nevertheless, during an interview with potential candidates, the company learned that its total reward package is less than its competitors (Hiles, 2009). Subsequently, the company needs a strategy to enhance Fleet Farm and Home’s total reward package to increase its competitiveness with other businesses and support retention and recruitment initiatives.1. Components to Include in the Total Rewards PackageA total reward strategy that is effective encourages employees to stay in the company longer, work more productively, and attract more talents. According to Maslow’s hierarchy of needs, employees are motivated by five fundamental needs: self-actualization, Esteem, love and belonging, safety, and physiological. Besides, five components make up the total rewards. They include,Compensation. This is the pay that employees receive from the employer in exchange for services rendered towards attaining the company’s strategic objectives and missions (Kaplan, 2007). Compensation enables employees to attend to the physiological like clothing, food, and shelter, which are part of fundamental needs as enlisted in Maslow’s hierarchy of needs. Compensation may include base pay, bonuses, and variable pay.Benefits. They include packages given to workers to promote their emotional, physical, and familial well-being (Hiles, 2009). They have leave plans, retirement plans, health insurance plans, vision and dental plans, and disability and life insurance.Work-life flexibility. All generations in the workplace today need flexibility. They can include flexible schedules, paid time off, Remote work, and parental leave.Performance and Recognition. Employees that are high performers need recognition and feedback. Some of the recognition rewards may include regular one-to-one meetings, an employee of the month awards, and goal-specific awards.Growth and Development. Performing employees would always want to continue growing and developing throughout their time with an organization. Therefore, initiatives that help them grow and develop are of value to them (Hiles, 2009). Such initiatives may include mentoring programs, leadership coaching, and job shadowing.Proposed Total Rewards Package for Fleet Farm and Home CompanyThis reward package aims to balance the employees’ needs and the organizational objectives. Moreover, the reward package motivates the employees and attracts and retains more talents (Kaplan, 2007). This compensation is tied to Fleet Farm and home’s culture as the leading market retailer. As a result, the organization intends to lead the market with better remuneration terms.Total Reward PackageIndirect Renumeration Direct RenumerationBase payMerit PaySalary WageProtection ProgramsMedical insuranceLife insuranceDisability incomePensionSocial securityPay for time not workedVacationsHolidaysSick leaveJury dutyDeferred paySavings planStock purchaseAnnuityIncentive paysBonusCommissionProfit-sharingPiece rateShift differentialStock optionServices and perquisitesRecreational facilitiesCarFinancial planningFree mealsConsequently, the company should be able to adopt a compensation ratio matrix to determine the amount payable to every employee.Formula Compa Ratio = Salary / Salary Range MidpointExample: If the midpoint is $60,000 and the salary is $75,000, the compa-ratio is: $60,000 / $75,000 = 0.8Subsequently, every worker’s total reward package will be unique (Hiles, 2009).

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It will include areas specific to them, like their salary and how much the company contributes towards their retirement plans, as will be identified appropriately. However,…

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…payFair Credit Reporting ActEmployee privacyFair Labour Standards ActFair PayFamily Medical Leave ActTime off for family/medical needsFederal Income Tax WithholdingSocial Security and Medicare TaxesGenetic Information Non-Discrimination ActNon-discriminationHealth Insurance Portability and Accountability ActEmployee privacy4. Recommend a strategy for compensating FFH’s management.To ensure equity and fairness, Fleet Farm and Homes should adopt a compensation ratio matrix to determine the amount payable to every employee.Formula Compa Ratio = Salary / Salary Range MidpointExample: If the midpoint is $60,000 and the salary is $75,000, the compa-ratio is: $60,000 / $75,000 = 0.8Subsequently, every worker’s total reward package will be unique. It will include areas specific to them, like their salary and how much the company contributes towards their retirement plans, as will be identified appropriately (Kaplan, 2005). However, indirect compensation will be the same for all the employees.Determination of compensation for FFH’s Management.It is not an easy task to determine a position’s compensation. However, the following factors will be considered for FFH to remain a market leader.· Company reputation and size.· Job location and cost of living· Required education level and job experience for the position· Availability of qualified candidates· Job title and responsibilities.· Industry average pay for similar jobs.Considering all the above factors and a compensation ratio matrix used to calculate the payable amount range for FFH store management, the following figures were established and proposed.· The FFH salary range for Retail Store Manager: $ 58,523-$79,611· The FFH salary range for Retail Assistant Store Manager: $ 45,735-$ 60,441· The FFH salary range for Department Manager: $37,423-$48,919ConclusionFleet farm and the home company is committed to its founding principles, including hard work, integrity, honesty, and loyalty to its partners and customers. Value and quality remain at the heart of Fleet farm and home. Its customers can trust that its products are of the best quality and at competitive prices (Van Rooy, 2010). Currently, Fleet Farm continues to grow while making investments in technology, processes, and people….....

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