This paper outlines the development of a comprehensive organizational human resources awards program from the perspective of an HR director. It examines reward identification criteria, the WorldatWork Total Rewards framework—including compensation, benefits, work-life support, performance, recognition, development, and career opportunities—and the organizational rewards inventory derived from that framework. The paper also applies Schuster and Kesler's Star Model to explore strategic alignment between rewards systems and organizational capabilities, structure, and talent management. A five-milestone design process guides the program's development, culminating in a dynamic, employee-responsive rewards structure tied to performance and organizational goals.
The development of an organizational awards program involves seeking support and commitment from the appointing authority and drawing on input from employees during program development. The organization's mission and values are incorporated to determine what accomplishments and behaviors will be rewarded, and a motivation survey is used to identify what incentives the organization's staff values most.
Rewards should be given for "significant outstanding performance that advances unit goals and should be tied to a specific accomplishment" (University Department of Human Resources, n.d.). Rewards are reported as most effective "when they are meaningful to the individual" and should be designed to "reflect the unique nature of the unit's work culture and organizational structure" (University Department of Human Resources, n.d.).
Importantly, rewards should not be substituted for a competitive salary plan, nor should they replace adjustments to base salary, supplemental compensation, or variable pay programs (University Department of Human Resources, n.d.). They are intended to complement — not replicate — existing compensation structures.
The WorldatWork Total Rewards Program includes seven core components, each described below.
(1) Compensation: Pay provided by an employer to an employee for services rendered — including time, effort, and skill. This encompasses both fixed and variable pay tied to levels of performance (WorldatWork, 2011).
(2) Benefits: Programs an employer uses to supplement the cash compensation employees receive. Health, income protection, savings, and retirement programs provide security for employees and their families (WorldatWork, 2011).
(3) Work-Life: A specific set of organizational practices, policies, and programs — plus a guiding philosophy — that actively supports employees' efforts to achieve success at both work and home (WorldatWork, 2011).
(4) Performance: The alignment of organizational, team, and individual efforts toward the achievement of business goals and organizational success. It includes establishing expectations, skill demonstration, assessment, feedback, and continuous improvement (WorldatWork, 2011).
(5) Recognition: Acknowledges or gives special attention to employee actions, efforts, behavior, or performance. It meets an intrinsic psychological need for appreciation and can support business strategy by reinforcing behaviors — such as extraordinary accomplishments — that contribute to organizational success. Whether formal or informal, recognition programs acknowledge employee contributions immediately after the fact, usually without predetermined performance goals. Awards may be cash or non-cash (e.g., verbal recognition, trophies, certificates, plaques, dinners, or event tickets) (WorldatWork, 2011).
(6) Development: A set of learning experiences designed to enhance employees' applied skills and competencies. Development engages employees to perform better and equips leaders to advance their organizations' people strategies (WorldatWork, 2011).
"Eleven recognition program types in inventory"
"Strategic alignment using the Star Model"
"Rewards programs as dynamic, evolving systems"
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