Running Head: TOTAL REWARDS PROGRAM
TOTAL REWARDS PROGRAM 1
Target Total Rewards Program (Target)
Chelsea Brooke Mattingly
July 6, 2021
A total rewards program is an approach adopted by an organization, which offers beneficial, developmental, and monetary rewards to workers who attain specific organizational goals. A total rewards program can help the Human resource to monitor workers’ effectiveness and performance. For the total rewards program to be sustainable, an organization should design a program that complements its vision, mission, core objectives, and culture. Besides, a company can improve its potential to allure, retain, and develop workers within the organization by designing the best total rewards program.
Top organization executives and the human resource management must comprehend the need for adopting a total reward program and measure to track and assess the program. Most companies around the globe have utilized total reward metrics to quantify the extent of the changes that human resource managers should pursue to attain enhanced performance and preserve highly talented employees for the company. Additionally, a total reward program increases workers’ performance and satisfaction in an organization. It also makes employees more loyal, engaged, and productive.
This paper will focus on Target Corporation’s total rewards program. It will also establish metrics to assess the effectiveness of the total rewards program and offer an implementation strategy and timeline for effecting the program (Ellis, R. (2015). Additionally, a summary of the corporation’s capabilities, primary goals, objectives, challenges, values, and core competencies heeded for success will be discussed. I will also demonstrate my knowledge of the total rewards model by outlining the current total rewards philosophy of the organization.
Furthermore, Target corporation workforce segmentation will be identified and delineated. The current requisite capabilities of the company and the competencies of the workers will also be outlined. Besides, the paper will provide recommended changes to the program and justifications for the recommendations. Moreover, the risks of not implementing the program and the opportunities it will offer the organization will be evaluated and elucidated. In addition, the metrics for assessing the total rewards program will be provided.
Summary and description of the organization
Target Corporation is the 8th largest American retail corporation. It was founded in 1902 in Minneapolis, Minnesota, the United States, by George Draper Dayton. The store became famous immediately because of good business practices, dependable products, and generosity. The store became successful because George Draper Dayton was very active in the store’s management until 1938, when he died. It has stores in all 50 states in the United States. Besides, its prominent tagline is “Expect More. Pay Less. The owner of Target Corporation is Brian Cornell.
Furthermore, the organization has more than three hundred and fifty thousand employees. The company had about one thousand nine hundred and four stores in the United States by 2020. It deals with jewelry, clothing and accessories, beauty and health products, beddings, shoes, toys, food, and furniture.
The organization’s capabilities have progressively changed over the years and have been one of its greatest strengths. The Target Corporation’s innovation skills are top-notch. It doesn’t stick to its tradition, but changes as the market trends change. Additionally, they are famous trendsetters in the fashion industry, services, and high-quality goods with very affordable prices. Moreover, Target Corporation has successfully narrowed its market focus to its key customers. It is the only retailer in the United States that has rapid-prototyping capabilities. They have also successfully delineated themselves from their competitors by producing their products according to their customer’s preferences and needs.
Target Corporation’s main goal is to utilize their size and scale to influence people around the globe positively. Additionally, they intend to assist all families in unearthing the joy of everyday life by working toward a healthier environment, strengthening communities they serve, and a more equitable world. The company strengthens the communities they serve by contributing 5% of their profit to them. In addition, the organization’s volunteers serve more than one million hours in these communities annually. The company also purpose to become the best shopping destination by providing excellent value, progressive innovation, and an extraordinary customer experience.
The main challenge that Target Corporation is facing is that consumers are buying more on specific items. Most Americans have binged on everyday household necessities, foods, and beverages, increasing sales to about 50%. However, the sales of goods such as apparel have nosedived. Similarly, the company is facing a big problem operating its stores safely because the large populace is regarded as a public health risk. Encouraging the clients to keep social distance and regular cleaning of the stores is not easy for the management.
The company’s values are great shopping, community engagement, ethics at work, and celebrating inclusion and diversity. These values develop a solid organizational culture that ascertains that the Target Corporation is always ready and motivated to move towards its vision. The company encourages its workers to develop the most fun, conducive and friendly environment for all groups to ensure consumers get exemplary services when they shop. Additionally, the company appreciates the importance of working and interacting with the communities they serve.
The most significant core competency of Target Corporation is their successful integration of cost leadership differentiation. This has enabled the company to obtain strong customer loyalty. Additionally, the company employs workers with different backgrounds, experiences, and distinct perspectives. It also has a diverse company culture. Besides, the Target Company is focused on utilizing their innovative competencies to offer their key customers a high-end image and experience by studying, following, and researching trends to satisfy their clients’ needs.
Target Corporation Total Rewards Program
Total rewards programs are used by the Target corporation management to motivate, allure, and retain their workers. The company uses examples of total rewards programs: compensation, career development, promotion, recognition, and work-life effectiveness. The total reward program has successfully created a competitive advantage (Mann, A. (2017). Target Corporation is dedicated to designing a total rewards program that improves the well-being of employees and their families. The corporation employees’ benefits eligibility, resources, and programs vary according to the length of service; the hours worked, and location. Moreover, Target corporation provides the following categories of offerings; career development, compensation, and benefits. The health benefits of Target Corporation employees and their family members are dental benefits, critical illness, accident, and hospital indemnity insurance, medical and pharmacy benefits, vision eyewear coverage, rewards and programs to promote healthy activities, support programs for life events, educational resources to persuade well-being, 20% wellness discount, and employee assistance program via Team Member Life resources.
Additionally, the financial benefits for the workers and their families include TGT 401(k) plans, family leave, vacation, national holidays, personal days, and well-being time, 10% discount at Target and Target.com, life insurance, healthcare, and daycare flexible spending account, identity theft protection, short-term and long-term disability insurance, retirement plan, equity incentive plan, annual bonus program, adoption assistance reimbursement, Target Credit Union, education assistance, and discounts on anything from childcare to gyms to vacation packages.
Furthermore, Target corporation employees are empowered to perform their duties excellently. The employees’ career benefits include coaching and mentoring, leadership development programs, growth through education, diversity program, professional development, and learning and development resources. Moreover, the company creates opportunities for their employees and promotes economic development daily in the areas they operate. These benefits enhance workers’ loyalty, creativity, and priorities. Besides, it improves the Target corporation culture and minimizes operating costs. According to research, monetary and non-monetary rewards increase job security, trust and respect the top administrators, increase job satisfaction because of accessibility to the management, proper communication, and effective feedback and disclosure to the workers.
Workforce segmentation identifies unique groups of workers and creates human resources practices for every group according to their distinct needs and attributes. It offers a corporation the capacity to polish up its talent, establish inefficiencies, grow talent in the right way, and furnish workers to chip in positively to the growth and success of the company. Besides, it enables the company management to tailor their worker’s benefits effectively to attain specific objectives. Workforce segmentation is vital during planning, developing, and enacting a total rewards program in a company.
Different employees have different preferences concerning non-monetary benefits because others prefer a work environment while others prefer career development. An excellent and sustainable total rewards program concentrates on the company performance, market rates and ensures that the reward approach motivates, allures, incentivizes, and retains the best talent. For a corporation to realize its objectives and targets, the administrators must segment workers and make sure that the total rewards programs concentrate on attaining the needs of the workers.
Additionally, the company has designed a total reward program that focuses on retaining workers, decreasing operation costs, and enables employees to concentrate on their tasks. Target corporation employees can be categorized into performance drivers, flexible schedules, desire for demonstrating individual expertise, and high obligation and high income. Performance drivers are workers who directly grow value for the company. Some employees work part-time and others full-time. The total rewards programs for Target corporation offer onsite services like daycare, gym, discounts, car parking, and subsidized health, among others. The workers in this organization can change their roles frequently.
Target Corporation’s total reward system has segmented their workers according to skills, expertise, and experience; it also decides non-monetary rewards. Besides, the program also separates workers with high potentials and workers with high turnover from the entire workforce populace.
Current Requisite Capabilities and Competencies
Target Corporation has remained distinct even if its strategy is imitated. It has the requisite capabilities and competencies to increase its product line for workers and customers’ segmentation. The company has a creative and innovative workforce that has enabled the company to attain a competitive advantage due to high-quality products, lower costs, and a better shopping experience. The company has enhanced new customers’ loyalty through the Target Circle strategy. It offers customers access to special sales, birthday rewards. And 1% back on in-store purchases redeemable for future visits.
Furthermore, Target Corporation has successfully established brand positioning through offering fashionable, trendy products of high quality at low prices to their customers. They also partner with other elite fashion designers to enhance customer satisfaction and provide various designer clothes. Additionally, they have a wide range of products in their stores. The core competencies of Target employees include behaving ethically and with integrity. This has enhanced the reputation of the company as the most preferred shopping destination.
The company workers are innovative and capable of developing solutions for their challenges. Besides, they provide excellent services to their customers, hence increasing their customer base. However, the present needs will change due to the challenges highlighted in both present and future business environments.
Changes to the Total Rewards Programs
The present total rewards program for Target corporation provides health benefits, financial benefits, and professional development compensations to its workers to keep them motivated, satisfied and to allure new talents to the company. The company continuously evaluates its total rewards program to understand the effectiveness of the program. Because of the constantly changing market environment, the total rewards program for Target Corporation should concentrate on workforce segmentation.
Workforce segmentation is vital because it will enable Target Corporation to establish non-monetary rewards for every workforce segment (Hung, & Wang, 2017). Moreover, effective segmentation of employees will enable Target corporation administrators to efficiently offer a reward program that will improve professional development opportunities, employee training, and non-monetary recognition of exemplary performance. Target corporations can use different metrics to assess the success of the new total rewards program like performance appraisal, offering specific allowances, employee recognition, and employee tenure.
Justification for the Recommendation
Designing a total reward program through workforce segmentation is vital, more so professional development opportunities that are the best growth opportunities. Distinct workers have different precedencies, and non-monetary rewards can significantly change the entire workforce populace. On that account, Target corporation administrators must successfully establish what attracts each workforce team. Categorizing employees into rational segments will assist the company administrators in establishing the reward program to capture the workers. Employees should be involved in the program creation, adoption, and evaluation because proper communication is paramount in this process. The company administrators should stress and efficiently communicate the total rewards program to differentiate workers basing on their segments.
Risks for not implementing the Program
A company can face different risks for failing to implement the total rewards program. The primary purpose of a total reward program is to allure, motivate, and retain workers. The absence of an effective total reward program will result in poor employee retention, demotivated employees, poor work environment, reduced performance, and reduced outcomes, lack of work satisfaction, and poor career and professional development. This makes the general strategy of Target corporation derail, making the company incur more expenses to attain its targets and primary objectives.
Metrics for Evaluating Total Rewards Program
Metrics are utilized to gather data to be evaluated to establish if the performance levels are attaining program goals. Total rewards program metrics evaluate data that highlights the quantity, quality, effectiveness, and cost of human resource programs. Target corporations should use different metrics to evaluate their total rewards metrics. These metrics include workforce productivity, job recognition, workforce forecasts, staffing level, and number of training attended, employee turnover, and human analytical resources.
Employee turnover metrics will enable the company to measure the competitiveness of the reimbursement package, career growth, and motivation programs. Besides, staffing level will enable Target Corporation to understand the number of workers in the staff plan, the correct staffing, and the number of vacant positions (John, Sebastian, & Brendan, 2021). All these metrics will help Target Corporation to allure, motivate, and retain top talent. They also highlight the ROI to gain the buy-in from prominent business leaders. Moreover, the data collected will help Target Corporation enhance its outcomes if the performance level is low.
Conclusion and Summary of Knowledge Gained
Target Corporation Total rewards program help the Human resource to monitor workers’ effectiveness and performance. The organization can improve its potential to allure, retain, and develop workers within the organization by designing the best total rewards program. Additionally, the total rewards program for Target Corporation provides health benefits, financial benefits, and professional development compensations to its workers. Moreover, designing a total reward program through workforce segmentation is vital; professional development opportunities are the best growth opportunities.
In addition, total rewards program metrics evaluate data that highlights the quantity, quality, effectiveness, and cost of human resource programs. The company has a creative and innovative workforce that has enabled the company to attain a competitive advantage due to high-quality products, lower costs, and a better shopping experience. Finally, the absence of an effective total reward program will result in poor employee retention, demotivated employees, poor work environment, reduced performance, and reduced outcomes, lack of work satisfaction, and poor career and professional development, among others.
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