Discuss the short term and long term benefits

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Reference no: EM133204870

Case: Total Reward, the name by which GSK refers to its approach to reward, consists of three elements:

Total Cash (base salary and bonus), plus long - term incentives for managers and executives.
Lifestyle Benefits (healthcare, employee assistance, family support, dental care)
Savings Choices (pension plan, ShareSave, ShareReward)

The complete package, the concept of which is based on employees understanding the total value of all the rewards they receive, not just the individual elements, is designed to attract, retain, motivate and develop the best talent. The proposition for employees is that Total Reward gives them the opportunity to share in the company's success, makes it easier to balance home and working life, and helps them to take care of themselves and their families.

Total Cash

The basic element of Total Reward is Total Cash. This consists of base salary and bonus. The philosophy behind this is that superior performance deserves superior reward. This, says the company, is "performance with a sense of urgency and integrity, performance that enables our patients and consumers to do more, feel better and live longer, and performance that will enable GSK to achieve its strategic goals".

Total Cash has been designed to reinforce the achievement of business objectives - when GSK and the business unit do well, the individual employee will do well too. The key features of Total Cash are:

'pay for performance' is a key principle;
GSK and business unit performance drives bonus plans;
It is aligned with the achievement of business objectives;
It reflects competitive leading market practices;
It rewards team and individual contributions;
It is aligned with roles and responsibilities

Question: Discuss the short term and long term benefits those GSK could obtain through the above total reward strategy. Critical thinking around the key areas of this case study is essential to develop appropriate answer.

Reference no: EM133204870

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