Sample Essay on Total Reward Metrics in Human Resource Management

Total Reward Metrics


Human Resource Management has changed from the traditional personnel management to become a part of the larger management strategy in many an organization. From the performance point of view, many aspects of Human Resource Management have evolved andTotal Reward Metrics have been used to measure the magnitude of the changes. Total Reward Metrics usually weigh the expected outcomes against the actual results in an organization to give a clear picture of the effectiveness of the organization in its operation. Total Rewards Strategy on the other hand contains some elements that help to measure returns on investment. Total Rewards Strategy Metrics may take into consideration the number of workers that have admittance to career, decreased rates of turnover as well as an increase in  the acceptance offers by qualified candidates, specific task participation, as well as the retirement program. Compensation and remuneration planning, job classification, and benefit planningare the most common rewardsthat can be used to measure how effective an organization is (Bonham, 2008). This paper will assess some of the metrics, that can be used to measure the degree of evolution that contributesto the goals of an organization.


An organization is defined as a system of social entity that strives to attain a collective goal which could encompass religious, social, or even academic groups. Government bodies, schools, churches and others are just but a few examples of organizations. Each organizational member is charged with the responsibility of making sure that the organizational objectives are attained. Every organization must have values, and code of ethics that guides and directs its members (Daft, 2010).

Current and Future Challenges Facing Organizations

Globalization is one of the current challenges facing many organizations. The cliché that the world is becoming smaller is dramatically true for many organizations today and is happening alongside the rapid changes in technology and communication. Compared to olden days, the time it takes to exert influence in the world is now so little because communication has greatly improved. Even the remotest of areas have access to information and influence from across the world, as well as the most developed area.The distance and locations have been reduced from years in the past to only seconds now in terms of information accessibility and influence (Daft, 2010).


Intense competition has also become a major challenge in the current corporate world. Even though the growing global interdependence has many advantages, it also means that the environment for companies and organizations are forced into intense competitiveness becoming more than ever. Companies now prefer to outsource certain goods and services, which can be beneficial for the organization. Lastly, today’s organizations also face the challenges of upholding ethics and social responsibilities. Managers in current offices face tremendous pressure from the government and the public to maintain high ethical and professional standards among their employees as well as within the organizations(Bonham, 2008).

One of the key future challenges that organizations are expected to face is adapting to the digital working place. Technology is evolving so fast that everything at the workplace will become digitalized. Organizations will be consumed by information technology and this will  absolutely affect how they will be designed and managed. Sales, for instance, currently takes the root on technology and online shopping has become quite popular and commonplace. Most organizations will be forced to change and conform to the system if they desire to remain relevant in the entrepreneurial world. In addition to that, inflation will cause many organizations to face economic challenges in the future because it is a problem that is slowly hitting the world today and causing the living standard to go up. Inflation will ultimately drive employees to demand salary increments and thus pose a challenge for organizations, which have little income generation because they will experience high employee turnover rate(Daft 2010).

For such organizations to remain successful, they will first have to adhere to the changes to technology and this poses a risk to the organizations that are more  traditional and conservative.  Organizations will incur some expenses in carrying out investments on current technology and changing the design and organizational management. For instance, business organizations will be compelled to change their operations to pure online and pure traditional delivery so as to accommodate all kinds of clients. Organizations will also need to train and develop their employees so that they can build a competitive force within their management team. They will have to strive to retain their best employees and compensate them well and competitively to get the best services (Thompson, 2003).

Reward Metrics

Organizations can employ different types of reward metrics that organizations can use to compensate workers and 4these may include the total compensation. This is linked to measures that affect the salary benefits of its employees. Organizations are evolving from the fixed rates of salaries that they used to offer during the personnel era, to the current compensation where performance of an employee is more prioritized. Performance today can affect both the employee benefit and their salaries. Employees may also get certain allowances, that are add-on to the salary as well as nonmonetary compensation which may include training by delegation and other forms of training. There are also performance appraisals, off days and health cover which are all non-monetarymeasures put in place to reduce that employee turnover rate, and avoid other costs related to employee turnover rate that include advertising, hiring, training and development costs (Thompson, 2003).

Another metric that organizations will need to utilize for survival purposes is the benefit planning metric. This will encompass the benefits that enhance comfort among the employees and lead to job satisfaction. Medical coverage, sick leave, disability insurance, are a few of the nonmonetary benefits that organizations can offer to its employees (Daft, 2010).


Ultimately, the Total Reward Metrics helps in assessing if the organization is heading towards the right direction in  the quest to achieve its objectives and goals. Human Resource Management has made it easier for the organization to attain its objectives because it has been advocating for efficiency and ensure that organizations recruit the right number of employees who possess the right qualification for the job. Ultimately, efficiency minimizes on costs and maximizes on revenue or productivity  or both (Bonham, 2008).



Bonham, S. S. (2008). Actionable strategies through integrated performance, process, project, and risk management. Boston: Artech House.

Daft, R. L. (2010). Organization theory and design. Mason, Ohio: South-Western Cengage Learning.

Thompson, J. D. (2003). Organizations in action: Social science bases of administrative theory. New Brunswick, NJ [etc.: Transaction Public host.