A total reward system comprises of all the efforts that an employer can use in recruiting, motivating and keeping employees. Employee turnover signals poor management within an organization and therefore, they should be motivated to work in a safe environment and also offered a competitive salary package. A total reward system ensures that staffs’ welfare is taken care of. Motivated employees are committed to their duties thus increasing the productivity of the firm. The staffs should not only be given monetary rewards but also non-monetary rewards. For example, staffs should be given a favourable working environment where they are free from workplace injuries, sexual harassment, etc. the total reward program comprises of the following components; compensations, professional development, recognition, work-life balance and benefits.
In the electronics industry the level of competition is high and therefore the firms need to invest more in research and development to produce highly competitive devices. Apple Inc., Nokia and Samsung are among the largest multinational corporations in the electronic devices.Technological changes are inevitable and consumers demand devices with new features which will meet their demands.Employees also play a significant role in improving the quality of the products.Teamwork and consultation help to improves workers morale thus enlightening their productivity. Most successful companies in various sectors have developed strategies to reward their employees. This is aimed at increasing productive capacity, increasing employee loyalty as well as generating more revenue to the company. The firms use different strategies such as acquisitions and mergers, joint ventures, among other strategies. Joint ventures help the firms to penetrate more markets thus reaching to more consumers. Acquisition and mergers are meant to improve the company’s asset position and also the reduction of potential competition. This paper will review thecurrent reward system for Apple Inc. and develop a suitable rewarding program.
Apple Inc. is a multinational corporation which deals with consumer electronics. The firm has dominated the electronic industry for last one decade.The company offers a competitive salary to its staffs thus reducing employee turnover rate. Thefirm generates a lot of revenue thus remaining dominant in the sector.The firm, however, has faced a lot of criticism in the last few years due to subjecting its workers to harsh working conditions, low payments and long working conditions. Some researchers have also found that the rate suicidal cases, particularly in their china branch, have significantly increased.One of the terms of employment within the firm is that you have to sign an anti-suicidal contract.
Most companies’ goals are to make money. However, according to Jonathan Ive Apple’s main goal is to make high-quality products and not making money. While talking in the British Embassy’s Summit,Ive noted that the company appreciates its high revenues but has to remain focused on improving the quality of their commodities. The firm is also committed to identifying new business opportunities within the international market. The demand for consumer electronics has greatly improved and as a result, the firm has to penetrate the market to meet consumer expectations.
The company aims to acquire and merge new entities to raise its competitive capacity. The company also aims at ensuring environmental management through recycling technique. The administration has encouraged its consumers to return outdated products to their shopping stores for them to be reused.Notably, this helps to reduce the emission of harmful chemicals into the surroundings.The firm also aims double the size of the service business. The firm’s finance Chief Luca Maestri indicated that the firm has a lot of opportunities and momentum to accelerate growth in the service sector.
Apple Inc.The company has several objectives which help the firm to compete with the rivals, increase production and also increase the revenue collected.The first objective is to expand their sales to new customers who have never bought Apple’s products. Some customers have never bought any product from Apple Inc. Company. The management team, therefore, aims at escalating the firm’s supply network to reach more clients. The company has set in place a strong advertisement plan which will create awareness to the potential consumers. To achieve this objective, the firm aims to use the following tactics; use of flagship stores which will attract more customers. The firm has already established flagship stores in Hong Kong. The entity will also rely on internet providers and the use of third-party retail shops.
The second objective is to offer hassle-free commodities that delivers services and pleasure to customers. The firm seeks to invest more in research and development thus producing new generation products.The products will also have new features which will help to satisfy the consumers.Arguably, the introduction of new features will help to win more customers thus holding a significant market share. People will be happy to connect with their friends as well as their relatives. They will also enjoy playing new games. The firm also wishes to produce environmentally friendly products as well as user-friendly products. Lastly, Apple Inc. aims at dominating in the mobile phone market;the firm looks forward to becoming an online search machine and platform for online advertisement. To achieve this objective the firm will invest much in an advertisement, research and development. The firm will also monitor Google’s and yahoo’s works.
Apple Inc. The company is facing a lot of challenges. The challenges can be categorized as; leadership, economic, competition and technology challenges. To start with, leadership challenge; the firm’s leadership has been changing and new management taking over. Remarkably, this may affect the futureperformanceof the company.There is a strong fear of the survival of the entity without Steve Jobs – a strong and visionary leader. He has strong knowledge of technology, market and arts. The second challenge is an economic challenge; the company’s brand is active about other brands and therefore enjoys inelastic demand for their products.However, the application of Apple’s products in Europe has been declining. Arguably, this is a challenge which may affect the firm’s income as well as consumer loyalty.Competition challenge; the company has been a barrier to other competitive entities such as Nokia and Hewlett-Packard. Nevertheless, two of its products- the iPad and iPhone have recently faced stiff competition in the mobile sector. It also faces excellent competition from Google’s Androidphone in the iPhone sector. Lastly, technology challenge; the firm’s new product iPhone 4S is less improved compared to its predecessor. Consequently, this is an indication that the company’s innovation and creativity are stagnant. The management team should, therefore, invest more in research so as to improve new products in the market for the firm to remain competitive.
Apple’s rewarding system
The current firm’s rewarding program is designed in such a way that the employees are motivated to produce high quality and competitive products. For example, the company ensures that the physiological needs of the employees arefulfilled. Notably, this is achieved by offering sufficient salary to meet their basic needs, employee payment is done regularly and also offer financial incentives. The financial incentives include; flexible savings plan, benefits and investment and stock purchase options. The firm also offers a satisfactory diningenvironment such as the corporate cafeteria which offers high quality and a variety of foods.
The firm also offers safety needs to their employees through providing retirement benefits, job security and a safe working environment. The employees both full-time and part-time are offered full-benefit medical cover. The employees are also provided with sickness and pension schemes. The firm satisfies the social needs of the employees by embracing teamwork environment where employees are able to interact. The firm also ensures that the esteem needs of the employees are achieved. Remarkably, this is achieved by valuing self-respect and also respecting the rest of the staffs.The appraisal system is also designed in such that it recognizes the contribution of each individual. The company also ensures that the self-actualization needs of the employees are fulfilled.
A Total Reward Program
A total reward program should incorporate the following elements compensations, professional development, recognition, work-life balance and benefits. For Apple Inc. to remain competitive in the international market a total reward program is efficient. Employee motivation is paramount in the production process. Introduction of new products in the market would attract new consumers. The total reward program is also aimed at improving the worker’s welfare. The emerging demand for consumer electronics and high competition in the sector require a high level of creativity and innovation. The company, therefore, should equip the employees with the right skills and technology.
All the employees regardless of their position in the company have a great expectation of their compensation. The firm has to closely monitor and encourage several pay strategies which encourage retention of the employees as well as providing incentives.Apple Inc. The company should ensure that the employees are entitled to a fixed pay; notably, this is the base payment of an employee. Fixed pay should be competitive thus encouraging employees to remain within the firm. The payment packaged is determined by the Apple Inc. payment structure and philosophy. High demand for production workersin the electronic market would encourage employee turnover in search of better wages. TheCEO and another key management team should ensure that all the staffs receive a reasonable salary thus motivating them to remain committed to their productive obligations. Secondly is the variable pay which is determined by the employee’s level of performance. The variable payment is a onetime payment in form of a bonus. Exceptionally, this form of payment is done once per performance period. The pay serves as a motivation for the workers to remain committed and also to increase their productive capacity. The short-term incentive payment is also a form of variable compensation. The pay is aimed at rewarding employees within a period of one or less than one year. Apple Inc. should evaluate the performance of the employees either annually, quarterly or semiannually to ensure that the employees adhere to the company’s code of ethics. Arguably this will ensure that the firm offers high-quality service and also reduce consumer complaints. The best performers are offered short-term incentive pay. Lastly, the firm should also offer long-term incentive pay- a variable payment which is aimed at rewarding employees for a period longer than one year. Apple Inc. Company’s long-term pay should include; restricted stock, performance shares, stock options, cash and performance units.
Professional development refers to opportunities offered to the workers by employers for individual development while in the company. The opportunity allows the employee promotion within the organization thus increasing their level of income. Apple Inc. should always ensure that the employees acquire training which will help them to be more productive. Staff training is also essential since the firm will incur less cost for the interviewing process since promotion is from within the company. Promotion from within is important since the employees already understand the firm’s culture hence, they will catch up very fast in their new position. Professional development will help the workers to up-skill and multi-skill. Upskilling refers to growth inone’s line of career. That is, adding more knowledge in a person’s job. Multi-tasking, on the other hand, refers to employees gaining more experience outside the fields of their career. Apple Inc. The company should offer opportunities in the following areas; internship, where young graduates are offered chances to develop their skills. The students are able to acquire skills which help to spur production within the organization. The firm should also offer the employees opportunities in the international assignment, leadership training, tuition reimbursement, online learning, succession planning programs, and self-development courses among other opportunities.
Apple Inc. The company recognizes the efforts of its employees. When the employees are recognized, they appreciate their own work and they are motivated to produce internationally acceptable products.the employees are recognized based on their loyalty and performance within the organization. The firm should implement measures to reward the workers as a way of recognizing their contribution to the company’s success. Such rewards include; service awards, performance evaluation, appreciation luncheons and outings where the staffs are able to interact within senior officials. Employees should also be rewarded goal-specific awards which leads to cost-savings, improved quality products, safety and productivity. Peer recognition award also motivates employees to closely interact and maintain a close rapport with others.
Consequently, this will promote consultation amongst the workers and the senior officials.Retaining close rapport also help to reduce workplace conflicts.An employee of the month reward is a way of recognizing hard work within the company. Most hardworking staffs are rewarded thus encouraging them to remain committed to achieve the Apple Inc. goals and objectives.
The balance between career and family is great concern within the international market. Employees who experience domestic violence are less productive and therefore their productive capacity is far much below the expected level. employees who are too much committed to work and denied a chance to have time with the family members are likely to get stressed, depressed and even committing suicide. Apple Inc. has in the recent year been accused of the high rate of staffs’ suicidal cases. The firm should, therefore, offer flexible work schedules which will allow the staffs to have more time with their families. The firm should also offer both paid and unpaid off time.Consequently, this willprovide the employees with enough time for social activities. The flexible workplace would also allow the staffs to take care of their children as well as their adult dependents. In the working place, people come from different backgrounds where the traditions and beliefs are contradictory. The firm should, therefore, introduce cultural diversity programs where the workers are to interact and learn about new cultures. Notably, this would also help to reduce workplace conflicts as well as improve the interactive capacity. Apple Inc. The company should also encourage community awareness and involvement programs which would allow the society to present their views. Additionally, this also helps to address the corporate social responsibilities.
Employee benefits can best be described by health insurance. Employee’s health status is paramount.Ill health may lead to poor performance of the workers. The worker’s welfare will be greatly influenced by the health conditions of the people. The firm should provide discounts on fitness programs. General body fitness is essential in the production process and therefore, the company management should be positive in improving the employees’ wellbeing. Apple Inc. The company should also provide health incentive programs to all the staffs.The employees should also benefit from retirement benefits following their contribution to the expansion of the business. The firm should also positively contribute to the unemployment program as mandated by law.
Generally, the firm should be purposeful in offering the total reward program to the employees. Rewarding the staffs helps in adding the value of the workers within the entity and will help to raise the total annual revenue.Both monetary and non-monetary rewards assist in organizational as well as individual development. Apple Inc. enterprise would experience great achievement by endorsing the total reward system. First, employee retention would significantly improve. The workers would enjoy services provided and would proudlybe associated to the firm’s success. Secondly, the program would motivate the workers thus improving their performance. The workers would remain committed and therefore, increasing their productive capacity.
In conclusion, a total rewarding program offers both monetary and non-monetary elements. The program also comprises of environmental components. Apple Inc. firm should provide a favourable working condition to the employees. Notably, this implies that workplace injuries should be eradicated entirely. The firm should also provide safety to the staffs thus reducing the turnover rate within the firm.Employees’ safety comprises ofjob security and reliable wages. Wages are monetary elements of the total reward program.High wages motivate workers to remain in their duties. The employees are willing to remain productive as longs they are getting sufficient wages.
Employees’ welfare is also a key consideration. The employer should focus on the improvement of the wellbeing of the workers. For example, the company should provide enough off time and a flexible work station to allow the staffs to interact with the family members. Social activities help to release workplace pleasures and also reduction of stress and depression. The firm should also be committed to offering staff training thus improving their level of performance.Highly skilled personnel producehigh-quality products which meets international standards.Staff training also helps to reduce the cost of recruitment since promotion is from within.
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