It is the intention of this paragraph to critically analyze whether long-term non monetary reward strategies such as training and development (job induction) and mentoring opportunities, career advancement opportunities, promotional opportunities, relocation opportunities and job enrichment and enlargement opportunities should be equitably accessed by managers and employees within Telstar Corp in the achievement of pre determined performance goals.
Fay (2001) suggests that promotional opportunities, relocation opportunities and career advancement opportunities are a framework for aligning, engaging, and reinforcing employees for contributing to improved performance. It is a way of recognizing the importance of employees in an increasingly competitive labour market practice. Whereas Beer et al (2004) argues that promotion and training opportunities are not strictly incentives as they are ways of fulfilling business needs.
They further propose that the purpose of long term non-monetary incentives is to reward employees for their outstanding job performance through providing them with enhancement opportunities. The most popular reason for introducing non monetary incentives is to take pressure of the base salary increase as base salary increases are expensive. Long term non monetary incentives are a one time reward with no compounding effects, it represents a wonderful financial solution; it ties fixed costs to expected long term contributions, and variable costs to one time accomplishments.
It helps in reducing entitlement and tying the term of the reward to the term of the accomplishment. At Telstar once every two years a career development plan is developed jointly between employee and manager. The content includes: Development needs – current position, Development needs – future career objective, Training and development action plan to achieve future career objectives, Developmental objectives, Results achieved and finally the signature of employee and manager, and dated.
Staff training and development (job induction) and career advancement are areas that a company takes seriously, and the human resources department has the responsibility to focus on ways to provide fresh opportunities for staff to develop and grow within the business. The management needs to give employees the opportunity to move on (promotional, job enrichment, enlargement and relocation opportunities’), and also they have to show them that there are opportunities to do different things and develop.
Most of the staff could have been in their current positions for quite some time and hence are looking for something a little bit different and being a part of ‘Telstar Corp’ Empire has potential benefits in this area. Employees working on the old and soon to be redundant copper based infrastructure can work with new colleagues in the wireless broadband section to find new opportunities, without them having to leave the organization as a whole, thereby benefiting both the employee and the company.
Whereas for managers performance testing and re- testing is prevalent to a much larger extent in the long term incentive plans. At Telstar the level and composition of long term non monetary incentives varies between the employees and the managers, while employees have more access than the managers to a reasonable extent. This essay has critically evaluated the pros and cons of various short and long term monetary and non monetary incentives for both the employees and managers, having done this it concludes that there is no magic formula that will be effective at all levels in the company.
Since cultures are different and markets are constantly changing, this brings out the need to experiment to find out which incentives work and vice versa. Developing a rewards program that best fits organizational strategy cannot be accomplished through ‘one size fits all’ solutions. Rather, the challenge is to develop a carefully crafted and customized mix of available compensation strategies that will make each member of the workforce feel as though a remuneration and rewards strategy has been created specifically with him or her in mind, and is sending direct messages about how he or she is expected to perform.
The effectiveness of diverse remuneration and awards strategies in any company will not be related to outside successes, but rather to the company’s own culture and work environment. Diverse pay strategies are introduced because competitive market forces demand it. If the competition offers variable pay, a company intent on attracting and retaining the necessary talent must live up to the market practice. Well designed plans can motivate incremental performance improvement, but the genesis of these plans is market pressure, not improvement and market forces may dictate payouts as any employee performance will.
Telstar Corp has a wide range of innovative incentive programs to foster its innovative culture. Its remuneration strategies are internally equitable, externally competitive and personally motivating to employees. Telstar Corp annually compares its managers and employee awards, benefits, incentives, and remuneration strategies with that of other leading companies in the same field and tries to maintain that level or exceed that level to better promote productivity and retention among its employees.
At Telstar Corp a single remuneration strategy is not appropriate for its 30000 odd workers hence it adopts diverse remuneration strategies, it has different remuneration strategies for managers and its employees, thereby allowing the company greater flexibility to attract and retain highly talented managers and employees in today’s highly competitive markets.