The way in which an organization communicates total rewards have evolved in changing business landscape, and leaders are worried in delivering critical information that includes total rewards to the employee because, total compensation includes overtime payment, vacation pay bonuses, and health payment. An organization total reward system may lead to the lag of the market due to budget constraints. For instance, an organization may offer minimal health, overtime and retirement benefits. Interestingly, in case of small businesses communicating total reward program may pronounce lag because of lack of size and financial solidity to offer substantial remunerations. On the contrary, reward program may lead to misfortune in human resource objectives as employee try to study the size of the gap (Davis,2007).
Relatively, limited resources in an organization is another challenge that affects the communication of total reward program because companies with minimal resources only choose few types of profits to include (Petera,2011). For instance, the employer must decide if employee select health maintenance within the organization or health welfares or higher deductible assurance that is pooled with health costs account over flexible expenditure accounts. Moreover, limited assets lead to the unsuitable mixture that fulfills employee to support the company human resource goal.
However, the challenges of communicating total reward program may are not fixed and can be ratified. For instance, if a company buy unlimited resources employees will enjoy a total reward program that will incorporate all the compensations, benefits, and other additional items that are valuable to the employee. Furthermore, the company structure should avoid lag in market competitive and instead lead the market. In this case, the company payment structure should remain ahead of demand and stay competitive throughout and shorten the gap of the market. This will help the company to provide total reward program to its employee (Davis,2007).