Employee compensation is one of the largest expenses a company has. It is important that compensation is well-designed and effective. Here you will read about how two different companies connect their total rewards to their organization values and goals. One of the companies will be selected for your paper.
This case study is focused on how 2 different companies use total rewards to support the organization’s missions and values and achieve strategic outcomes. Select only 1 of the companies as the basis for your case study response. (This is not meant to be a comparison of the companies, but an exploration of how 2 different companies use their compensation and benefits structures to achieve organizational outcomes). The paper must specifically address the following areas:
• How the company uses its own products or services to enhance the total compensation for its employees;
• The internal and external strengths and weaknesses identified and how the company responded to these factors from a total rewards perspective;
• Examples of traditional and non-traditional rewards and how they are used to meet organizational objectives;
• How the company aligns its compensation benefits with its corporate values; and
• Recommendations regarding an expansion of the benefits programs offered at the company that would further align HR with the accomplishment of organizational goals and values.
Full Answer Section
Strengths and Weaknesses:
Internal Strengths:
- Strong Employer Brand: Patagonia's commitment to environmental responsibility and social activism attracts like-minded employees who value its mission beyond just profits.
- Employee Ownership: A small percentage of company stock is allocated to employees, fostering a sense of ownership and investment in the company's success.
Internal Weaknesses:
- Potentially Lower Base Salary: Compared to competitors in the outdoor apparel industry, Patagonia's base salaries might be lower. This could be a challenge in attracting talent, especially in high-cost areas.
External Strengths:
- Growing Outdoor Market: The increasing popularity of outdoor recreation activities aligns well with Patagonia's product offerings and strengthens its employer brand.
- Socially Conscious Consumer Base: Consumers who value environmental and social responsibility are more likely to choose Patagonia, further solidifying its brand identity.
External Weaknesses:
- Competition: The outdoor apparel market is highly competitive, with larger brands offering competitive compensation packages.
Traditional and Non-Traditional Rewards:
Traditional Rewards:
- Competitive Benefits Package: Patagonia offers health insurance, retirement savings plans, and paid time off, providing a solid foundation for employee well-being.
Non-Traditional Rewards:
- Environmental Initiatives: Patagonia allocates 1% of sales to environmental activism, aligning with its core values and offering employees a sense of purpose beyond profit generation.
- Paid Advocacy Time: Patagonia offers employees paid time off to volunteer for environmental causes, demonstrating its commitment to environmental responsibility and social good.
- Flexible Work Arrangements: Patagonia prioritizes work-life balance, offering flexible work schedules and remote work options where feasible. This caters to employees who value an active outdoor lifestyle.
Aligning Rewards with Values:
- Employee Ownership: Promotes a sense of ownership and aligns with the company's mission of empowering its employees.
- Environmental Initiatives and Paid Advocacy Time: Reinforces Patagonia's commitment to environmental responsibility, a core value deeply embedded in its brand identity.
- Flexible Work Arrangements: Supports the value of a healthy work-life balance and caters to employees who enjoy an active outdoor lifestyle.
Recommendations for Benefit Program Expansion:
- Student Loan Repayment Assistance: This benefit would address a major financial burden for many employees and align with Patagonia's commitment to social responsibility.
- Outdoor Recreation Opportunities: Patagonia could offer subsidized participation fees for employees in outdoor adventure races, marathons, or other events that promote an active lifestyle. This aligns with its core values and strengthens employee engagement.
- Mental Health and Wellness Programs: Offering expanded mental health resources would demonstrate Patagonia's commitment to employee well-being and cater to the growing need for mental health support.
Conclusion
Patagonia's total rewards strategy effectively leverages its core values to attract and retain talent, promote a positive work environment, and achieve both social and environmental goals. The proposed benefit program expansions can further amplify this connection and solidify Patagonia's position as a leading employer in the outdoor apparel industry, attracting individuals who value its mission beyond just a paycheck.
Sample Answer
Case Study: Patagonia's Total Rewards and Core Values
Company: Patagonia
Focus: This case study explores how outdoor apparel company Patagonia leverages its total rewards strategy to reinforce its core values and achieve its environmental and social goals.
Using Patagonia Products:
- Employee Discount: Patagonia offers a generous employee discount on its outdoor apparel and gear, directly aligning with its focus on an active, outdoo