Title: Considering Total Rewards As Motivation to Employees of Deloitte

Title: Considering Total Rewards as motivation to employees of Deloitte

Purpose

This proposal considers ‘Total Rewards’ and ‘Performance’ as motivator compared an appropriate reward and pay strategy that would best motivate employees to meet the overall organisational strategy and objectives.

Introduction

Deloitte is among the largest and longest serving accounting firms. Deloitte’s clients range from the smallest local manufacturing company to the largest financial, governmental and international organizations.

Deloitte actives in the professional services field with a vision to become the standard excellence globally. Deloitte is passionate about becoming the clear market leader by engaging with decision-makers while offering them trusted, innovated and integrated solutions that will help them become as distinctive and as robust in their field as the company is in its own.

As stated in Deloitte’s website, the strategic priorities are to improve the performance of the business by choosing the right course of action fusing executable strategy, operations and technology.

 Driving high performance culture – the ability to recruit, retain, develop and reward the best talent.

 Leverage on business model – delivering the benefits of scale and regional diversity to both clients and people.

Being a consultancy firm, Deloitte offers a large range of services that have proved flexibility according to the market needs.

Recommended reward & pay strategy for Deloitte

Deloitte uses Performance Related Pay (PRP) that links directly into performance and level of competency thus driving its high performance culture, according to its strategy. According to Deloitte’s website, the company uses total reward practice to address overall business strategy and global alignment of employee programs while considering all the compensation and benefits package of the employee, with both financial and non-financial components. Mayhew (n.d.) describes total rewards as a broad definition of the ways employees receive compensation and other valuable options. There is a clear link within the reward and pay policy of Deloitte and the performance of the individual: each year, all the employees are assessed on their performance against the proposed goals and on competency level.

Fixed pay reward Variable pay reward Non-financial reward Salary – paid using salary Annual Bonus – paid Discounted services (private grids, according to according to bonus policy, medical services, sports competency level and grade. which takes into account providers); individual performance Insurance (life and department and country accident); performance. Professional qualifications and other training according to policies; Opportunities to work abroad.

According to Michael Armstrong (2003), PRP can motivate, correlates performance with the objectives and satisfies the employee’s need to be rewarded for its performance and also sends the message that performance is important for the company and will be rewarded. Thus, using PRP as part of the reward scheme in Deloitte is in line with its strategy (more specifically, “reward best talent”).

On the other hand, PRP can also de-motivate, through assessments that can be subjective, can affect negatively working in teams, as it can create too much competitiveness between team- members and it can be concentrated more on results rather than quality (how things are done), (Armstrong, 2003).

In order to mitigate the latter argument, Deloitte is using parallel Competency Related Pay (CRP), which encourages evolving and continuous growth in the company. Nevertheless, competency can prove to be hard to measure and be vulnerable to subjectivity from assessors. (Armstrong 2003).

One of the characteristics of the market in which Deloitte operates is its flexibility and continuous change. This leads to a diverse population in the company, which can address various types of services for the clients.

In order to maintain its competitive advantage, Deloitte should address diversity within the company through reward. The reward package is fixed for all employees, yet the needs of the employees are very diverse. Employees vary from people who have just graduated or even elderly people, so it is recommended to have a benefits package that can suit more needs, like a flexible benefits scheme.

One other characteristic that is driven by the market changes is the separation between types of services: compliance versus advisory work, which is actually the opposite. Having the same type of reward schemes for both compliance and consulting employees can lead to de- motivation, as it is difficult to meet both needs in the same satisfactory manner. Thus, another proposition for change would be to have two types of compensation: PRP for advisory work and competency related pay for compliance work, as the performance objectives are recurrent, yet what is very important is the level of quality for the deliverables, as this is what offers the distinctive advantage on the market.

Conclusion In conclusion, slight adjustments should be considered to the current reward and pay strategy, in terms of showing more flexibility to address diversity in the firm and also to have different reward schemes for different types of work.

References:

Martin, M., Whiting, F., Jackson, T., (2010) Human Resource Practice. London: CIPD.

Armstrong, M (2003) A Handbook Of Human Resource Management Practice / Michael Armstrong, (n.p) Accessed 13 February 2013. http://www.deloitte.com/view/en_LT/lt/about/vision-culture-and-beliefs/index.htm

Rihova, I. (2009) Performance Management http://www.deloitte.com/view/en_CZ/cz/services/consulting/humancapital/7a0ac1c78843421 0VgnVCM200000bb42f00aRCRD.htm