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Total Rewards Package Strategy
Introduction
Initially 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. Its headquartered in Appleton, with its central distribution center in Chippewa Falls. The companys 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 Homes total reward package to increase its competitiveness with other businesses and support retention and recruitment initiatives.
1. Components to Include in the Total Rewards Package
A total reward strategy that is effective encourages employees to stay in the company longer, work more productively, and attract more talents. According to Maslows 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 companys 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 Maslows 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 Company
This 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 homes culture as the leading market retailer. As a result, the organization intends to lead the market with better remuneration terms.
Total Reward Package
Indirect Renumeration Direct Renumeration
Base pay
Merit Pay
Salary Wage
Protection Programs
Medical insurance
Life insurance
Disability income
Pension
Social security
Pay for time not worked
Vacations
Holidays
Sick leave
Jury duty
Deferred pay
Savings plan
Stock purchase
Annuity
Incentive pays
Bonus
Commission
Profit-sharing
Piece rate
Shift differential
Stock option
Services and perquisites
Recreational facilities
Car
Financial planning
Free meals
Consequently, 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 Midpoint
Example: If the midpoint is $60,000 and the salary is $75,000, the compa-ratio is: $60,000 / $75,000 = 0.8
Subsequently, every workers total reward package will be unique (Hiles, 2009). 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,...…pay
Fair Credit Reporting Act
Employee privacy
Fair Labour Standards Act
Fair Pay
Family Medical Leave Act
Time off for family/medical needs
Federal Income Tax Withholding
Social Security and Medicare Taxes
Genetic Information Non-Discrimination Act
Non-discrimination
Health Insurance Portability and Accountability Act
Employee privacy
4. Recommend a strategy for compensating FFHs 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 Midpoint
Example: If the midpoint is $60,000 and the salary is $75,000, the compa-ratio is: $60,000 / $75,000 = 0.8
Subsequently, every workers 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 FFHs Management.
It is not an easy task to determine a positions compensation. However, the following factors will be consideredfor 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-$48,919
Conclusion
Fleet 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…
References
Hiles, A. (2009). Tough Times Demand Focus--Total Rewards Strategy. Benefits Quarterly, 25(4).
Kaplan, S. (2005). Total rewards in action: Developing a total rewards strategy. Benefits & Compensation Digest, 42(8), 32-37.
Kaplan, S. L. (2007). Business strategy, people strategy, and total rewards. Benefits & Compensation Digest, 44(9), 12-19.
Sachs, B. I. (2007). Employment law as labor law. Cardozo L. Rev., 29, 2685.
Van Rooy, D. J. (2010). Total rewards strategy for a multi-generational workforce (Doctoral dissertation, University of Pretoria).
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