Digifile Case Study

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1.1 Purpose of a Total Reward Program Due to economic uncertainty, many companies are forced to limit their salary increase budgets. DigiFile has suffered a major setback due to sale of their most successful product WS100 by imitators, causing a dip in sales over the past two years. DigiFile needs to find ways to supplement the current financial rewards with non-financial rewards to retain and motivate employees. The purpose of this study is to propose a total reward strategy for DigiFile and how this can be used to deliver a competitive advantage. This reward strategy would allow DigiFile to use reward policies, practices and processes to support the delivery of its overall business strategy. In order for this reward strategy to be successful,…show more content…
Line managers must also actively engage and motivate their teams. The total reward tool will not work if managers do not engage their team members and apply it to their daily activities. 2.2 Current Issues with Salaries Currently, DigiFile offers the Base Pay as well as the Benefits. To achieve Total Rewards, DigiFile has to look into the Engagement portion. With a total reward approach, management can build on existing offerings at any time to include any additional benefits they want at any point of time. However, there are other points to consider while developing a total reward strategy: - DigiFile’s current reward practice and how it should change to align with business strategy. - The views of key stakeholders (CEO and Directors) - Organisation structure (the importance of each group, i.e. Production workers, administrators, sales personnel) - Market practice and trends DigiFile currently pays all its production and administrative staff under separate salaries agreements. Through the efforts of the manufacturing workers union, the pay for production staff had increased consistently and these workers now enjoy rates of pay far in excess of the administrative workers who have little negotiation…show more content…
It examines the contents and requirements of jobs and measures these against a standard scale. This result in job grades, scores, levels or ratings whereby jobs can be compared with other jobs to determine their relative worth (University of Cape Town, 2015) In order to understand how these jobs relate to each other, an organisation structure for DigiFile has been illustrated in Appendix 1: 3.1 Objectives for Job Evaluation: 1. To determine equitable salary differentials between different jobs in the organisation 2. To eliminate salary inequities 3. To develop a consistent salary policy 4. To establish a rational basis for incentive and bonus schemes 5. To provide a framework for periodic review and revision of salary rates 6. To provide a basis for salary negotiation with Workers

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