Digifile Rewards Strategy

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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…
This report would provide a list of non-financial rewards and benefits that could be offered to staff within the organisation. Some non-financial rewards are training plans, flexible working arrangements, staff recognition and many more. To offer various job evaluation techniques available for use by the company as well as working examples of these techniques. Job evaluation helps to analyse and access the different positions systematically so as to ascertain their relative woth in an organisation. By performing job evaluation, DigiFile would be able to discover the relative worth of a job as compared to other jobs. There are four phases to a Total Reward Program. The process begins with assessment where data is collected to evaluate the organisation’s total reward system. In the design stage, reward strategies are being identified and analysed. The total reward strategies are then put into operation and lastly this system will be evaluated for its…show more content…
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 power. Wage rates for sales staff include a base wage and structured bonuses for achieving various sales targets. Executives enjoy a salary based on the 90th percentile of market surveys for similar sized organisations but are 100% cash based. All salaries are cash based and no other fringe benefits are

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