Total Reward0??2??: Components of total reward and how they satisfy different needs in Maslow’s pyramid.

Previous weeks article introduced the concept of total reward and it’s objectives.

https://www.dhirubhai.net/pulse/total-rewards-01-robert-sakayo

Today we will be outlining how different components of total reward satisfy different needs in Maslow’s pyramid. The components of total reward include; Compensation, Benefits, Wellbeing, Recognition, and Development.

Compensation - This refers to base pay (base and variable) that employers provide to employees in exchange for skills applied, time given, targets met etc. towards achieving an organization’s mission and strategic objectives. Compensation allows employees to attend to their physiological?needs like, food, clothing, shelter, etc.

Benefits - These are the indirect and non-cash compensation paid to employees?over their salaries and wages.?These packages?enhance employees physical, emotional, and familial?safety. The most basic types of employee benefits are health, dental, leave plans, life and disability insurance, and retirement plans.?

Well-being - Employee wellbeing has become more critical for employers to attract and retain employees. More and more people recognize the need for holistic wellbeing to be satisfied, healthy, and motivated in life. As a result, employees are expecting organizational cultures to promote employee wellbeing. Organizational cultures that value and promote employee wellbeing may be characterized by:

• Employee assistance programs – These provide additional assistance to employees who may be experiencing challenges in their relationships, finances, or mental health.
• Employee resource groups – Such groups provide a social hub for employees who share similar backgrounds or interests to form?friendships?and professional networks within the organization.
• Diversity, Equity, Inclusion &?Belonging (DEIB)?programs – These have blossomed over the past few years in many organizations to review and address how equitable and inclusive organizations are for diverse employee populations.
• Company-sponsored events – These events allow a cross-section of employees to socialize together and sometimes with their families (like a ‘Family Day’) to build friendships within and to foster?belonging?to the organization.
• Opportunities to volunteer – Giving back to those in need also contributes to employee wellbeing.
• Remote work and flexible work schedules – Such arrangements provide a form of?safety?for family life and relationships.

Recognition - People want their achievements to be recognized. Recognition programs can take the form of:

• Awards – Spot awards, tenure awards, performance awards.
• Promotions – Ability to move up the corporate ladder to gain more responsibility and visibility to leadership.
• Verbal appreciation in the presence of their peers or a simple ‘thank you’.

While all employees may not need these types of recognition, all employees need respect in the workplace.?Respect?is a form of recognition that all employees need to maintain a sense of dignity and psychological safety in the workplace.

Development - Employers who invest in employee development programs are investing in the?self-actualization?of their employees. We are all endowed with gifts and talents. Through education, training, mentorship programs, and relevant work experience, these gifts and talents equip employees to become more competent in their roles. In other words, these career development initiatives enable employees to advance within the organization to realize their full potential.

What other ways not in this article can employers utilize to satisfy the maslaws pyramid of needs?