How to Create RBS Total Rewards Map
Royal Bank of Scotland offers a wide range of rewards in order to ensure that they maintain their employees’ morale. The firm has embraced Total Employee Reward concept in order to ensure that they give their workers as many benefits as they deserve. The benefits are both financial and nonfinancial.
However, it is important to note that sometimes it may not be easy to be perfect. Inasmuch as RBS has made an effort to ensure that it offers its employees a wide range of benefits, it only fair to believe that there are some areas that the management did not give proper attention to when developing the reward program. Sometimes the ignored part of the reward is what a given group of employees need the most. For this reason, it is important for this firm to ensure that its reward program is as comprehensive as possible, taking into consideration the varied needs of its employees.
In order to identify the possible gaps in its current reward system, it is necessary to create the RBS Total Rewards Map. This map will identify what RBS is currently offering to its employees and what it could have ignored in its initial programs. This map will simplify the process of identifying what the firm has in its current portfolio and the approach in which it is offered. It may also help in determining how the current programs can be adjusted to meet the changing needs of its employees from time to time. The following figure shows a possible map that can be used by the management of RBS to identify the gaps in its current reward system.
As shown in the map shown above, the management of RBS will need to classify its benefits. The map developed above has identified five main areas of benefits. The first area is learning and development. The management should review its current programs in order to determine if it is offering benefits that can enhance employees’ learning and development. So far, it may be true to state that this firm has been successful in this area. The second group includes issues related to the work environment. Under this category, it is evident that this firm has done its best, but ignored the relevance of diversity in the workplace. RBS is operating in the global market (Mathas 2014, p. 11). Its reward programs do not capture how the workplace environment should be integrated and diversity is used as a strength, not a dividing factor. This is one area that the management should consider next time it will be reviewing its reward programs.
Compensatory rewards fall in the third group in this map. RBS has an elaborate program that covers various types of compensation to its employees. However, analysis of their reward system reveals that it does not have annual incentives for its employees. As Heneman (2007, p. 14) observes, many firms are now considering giving their employees annual incentives as a way of motivating them in order to act in a given manner. RBS should also find a way of giving its employees annual incentives as a way of appreciating their hard work throughout the year. This will motivate them to work even harder in order to achieve better output.
The fourth category describes the benefits. There are numerous benefits that are currently offered by RBS to its employees. Some of the conspicuous benefits that are currently available include retirement benefits, medical benefits, and paid holidays. These packages have enabled the firm to convince its employees that it cares about their health, social well being, and other personal needs. However, this can be improved further by introducing other benefits for those who are living with various forms of disabilities. Such a reward is not meant to emphasize to them that they are different from others because if that is the case, then they will be demoralized instead of being motivated. When giving such a reward, the management should be very categorical and explain to them that the reward is given to appreciate the extra effort they put at work, defying their disabilities. This way, they will feel that the management appreciates the effort they put at work.
The last category in the map is about performance and recognition. According to Ivancevich and Konopaske (2013, p. 73), employees play an important role in putting into practice the policies and recommendations given by the top leaders. When they do this successfully, it is important to recognize their work. Giving financial incentives may not be enough. It reaches a stage where one needs more than financial incentives, as explained in Maslow’s Hierarchy of demands. Recognition is another important method of motivating the employees. RBS has a program running currently that is meant to address this issue (Mathas 2015, p. 6). In this area, the management of this firm has been very elaborate. However, the employees should be allowed to give their own views of any adjustment that might be necessary in order to have a program that is holistic in nature.
RBS Compensation Communication Plan
According to Gowan and Ochoa (2008, p. 110), communicating with employees about the benefits that the firm offers is very important. It helps the management to eliminate the feeling among the employees that they are entitled to these benefits even if they fail to deliver the expected outcomes. When the employees understand that these are additional benefits given by the firm as a sign that it cares about them, then they will see the need to put more effort into their work in order to give it their best. In this section, the researcher will look at how the communication plan can be developed in order to help the employees understand the relevance of the program.
Outlining the communication plan
As the HR manager, it will be necessary to develop an effective communication plan that will be used to reach out to the employees and inform them about the total rewards system offered in this organization. The aim of this communication is twofold. First, the management will be informing the employees that there are benefits that they should remember the firm offers to its employees. Some of them are offered automatically while others are offered upon request. This way, they will know when, why, and how to request for these rewards. The second aim of this communication plan is to help inform the employees that the firm is under no obligation to offer these benefits, but it does so because of its concern for its employees and the desire to make them more productive at work. This will make them realize that they have a responsibility to reciprocate this favor to the firm through the delivery of better services in this firm. When developing this plan, the following areas will be put into serious consideration.
Target audience
The target audience must be clearly defined in order to determine how the message should be developed (Oltra, Bonache & Brewster 2013, p. 305). In this case, the target audience will be the current employees of this firm, including those in managerial positions. The firm will also target prospective employees, especially those who have been recruited and are planning to join the firm. This will ensure that by the time they get absorbed into the firm. They will know what to expect.
Marketing total rewards information
As the HR manager, I chose to market total rewards information. According to Armstrong (2007), employees are the most important asset within any organization. The success of a firm depends on what they do and how they do it. I know that our employees mean a lot in defining our ability to achieve success. However, it is a fact that the level of employee output is based on their level of motivation within the firm. A team of highly motivated employees’ can achieve a lot. I choose to market total reward information to them as a way of motivating them to deliver a better performance. My message will be simple but very clear: RBS values you and your good performance will be rewarded through all the means possible. The message will clearly to inform them that the reward is not just meant to appreciate them, but also propel them to achieve even better results. On one hand, this information will make the employees feel valued at this firm. On the other hand, it will make them to be committed in their work so that they can get even more rewards based on their performance. This way, RBS will not only have a team of highly motivated employees but also retain its talents for a longer period.
How and when to communicate the information
How to pass the information to the target audience is also another very important fact that that should be considered. As the HR manager, I believe that using an internal memo will be very appropriate when passing this information to the employees. This information is meant for consumption by all the employees of this firm, including those in managerial positions. It will be appropriate to pass the message in a way that will reach them in a uniform manner. To do this, an internal memo will be very appropriate. The memo will be mailed to all the employees of the firm. In order to ensure that the message is received even by those who do not visit their mails regularly, a hard copy of the memo will be pinned in the offices where all the employees can access. The aim is to ensure that all the employees get to read the message so that they can act upon it. The time when the information should be passed is also another important factor that should be considered. This communication will be given after and before major holidays.
When it is given before major holidays, the employees get prepared psychologically how they should plan their work in order to deliver the best results in the following financial year. When they come back after the major holiday, the message will be passed to them again in order to remind them of the commitment they have within the financial year in delivering the best results to the employees. This approach will ensure that the message about the need to work hard and get rewarded is always at the back of their minds. McEwan (2015, p. 8) warns that the management should avoid creating the impression that the reward can only be given if the performance of the employees is improved. This may make it sound punitive. The message should clearly state that most of the benefits have been made accessible to the employees by virtue of them being workers of this organization. The additional benefits are only meant to reward the exceptional performance of the employees in various departments. This means that even before the additional rewards are given, these employees are indebted to the firm due to other benefits that are already factored either in monetary or non-monetary forms.
Why the format was selected
The format selected above was considered appropriate because of its convenience and the ease with which it can be prepared. As Toh and DeNisi (2007, p. 290) note, on many occasions, a memo is the most common official way of communicating general information to the employees. Letters are largely considered a personalized form of communicating to the employees. Moreover, many employees have developed phobia toward letters. In most cases, it carries with it a message of warning or dismissal. That is why in many cases employees fear it. Sometimes it comes to inform an employee about an impending promotion. In order to eliminate those mixed feelings, a memo would be appropriate. It will inform the employees that this is a message that targets everyone. Making it public to all the employees will be a demonstration that the stated rewards do not just target a section of the employees but everyone who is already working for this firm. This format is also easy to prepare, very simple and clear. It can be delivered through e-mail, posted in the office or other strategic areas accessible only to the employees of this firm. Given the official nature of memos, the employees will treat this message with seriousness.
Communicating the information
According to Rose (2014, p. 42), information coming from the management will be treated differently based on the person who passes the message across. A message from a supervisor can be dismissed as a rumor or wishful thoughts because of the number of people who will still have to confirm the message before it becomes a reality. A message from the top management unit will be treated seriously because the other junior officers will have to follow their directives. In this case, it is necessary that this information be treated with the seriousness that it deserves. For this reason, it will be communicated by the HR manager and signed by the finance director. The aim of the message is to improve the output of the employees. The HR manager is responsible for managing the performance of the employees. He is respected within the organization. Giving him the opportunity to pass the message not only makes the employees take the message seriously, but will also give the HR manager the moral authority to demand better performance from the employees. The approval of the HR director will be a confirmation that the issue has been discussed at the highest level within the firm, and consensus has been reached. Everyone who gets to read the message will have no doubt that the promise given by the management will be fulfilled.
Actual communication plan
List of References
Armstrong, M 2007, A handbook of employee reward management and practice, Kogan Page, Philadelphia.
Gowan, M & Ochoa, C 2008, Parent-Country National Selection for The Maquiladora Industry In Mexico: Results Of A Pilot Study. Journal of Managerial Issues, vol. 10. no. 1, pp. 103-118.
Heneman, R 2007, Implementing Total Rewards Strategies: SHRM Foundation’s Effective Practice Guidelines Series, SHRM Foundation, New York.
Ivancevich, J & Konopaske, R 2013, Human Resource Management, McGraw-Hill Irwin, New York.
Mathas, C 2014, CASE: Royal Bank of Scotland: Motivation through Total Reward, Cyprus International Institute of Management, London.
Mathas, C 2015, Summary Student Notes for HR565: Reward Management, Cyprus International Institute of Management, London.
McEwan, R 2015, Delivering value growth at RBS, Morgan Stanley Financial Services, London.
Oltra, V, Bonache, J & Brewster, C 2013, A New Framework for Understanding Inequalities Between Expatriates and Host Country Nationals, Journal of Business Ethics, vol. 115. no. 2, p. 291-310.
Rose, M 2014, Reward management, Kogan Page, London.
Toh, M & DeNisi, A 2007, Host Country Nationals as Socializing Agents: A Social Identity Approach, Journal of Organizational Behaviour, vol. 28. no. 3, pp. 281-301.