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A total reward strategy is an effective method that is instigated by a business that delivers financial, beneficial and developmental rewards to workers to support them in attaining specific business goals and objectives. The strategy syndicates compensation and benefits with enabling personal growth opportunities inside a motivated work environment (Anderson, 2017). The present report focuses on one of the leading Motels of the United States that is Travelodge that impart quality and valuable services to the customers and guests. The key services rendered by Travelodge focuses on accommodation services, restaurant and café services to attract different segment customers. 

In regard to Travelodge, human resource management focuses on proposing a total reward strategy for motivating and retaining their employees. The reward strategy will address all the issues that will determine the outcome in aligning company business goals with the interests of their employees. On the other hand, it will also centre on drafting key components of total rewards communication programs. 

Main body 

Create a brief overview of the company requirements for a total rewards system

In the present scenario, managers and executives recognise that to hold or preserve the high performers they are required to offer a competitive salary that sufficiently imitates the business climate of the industry. However, the service based profit organisation is necessary to modify their reward system as the rate of employee turnover in the service industry is far higher than the other sector. Through assessing the scenario of Travelodge, it has been determined that there is a requirement of proposing an effective reward system as presently the employees and staffs are not motivated towards rendering the quality services to customers (Quan et al. 2017). In order to propose a reward structure of Travelodge, it has been stated that service organisation will encompass six different requirements that will support the employees to get motivated and engaged in the setting. The overview of company requirements for a total reward system is as follows- 

Compensation- The foremost requirement in the total reward system will be compensation for the services that are rendered by the employees in the motel. The services imparted mainly include assisting customers by accomplishing their requirement. The compensation is paid either fixed or variable pay according to their services rendered in the setting. With the adequate pay structure employees will start perceiving that firm is keenly interested in recognising its services that in turn will enhance their loyalty towards the affairs of the company in the best possible and effective manner (Punjaisri & Wilson, 2017). 

Benefits- Another requirement for a total reward system is related to providing security to their employees with imparting programs related to health insurance, saving as well as retirement programs etc. However, it has been assessed that offering an attractive value package can help the employees in boosting their morale to get committed towards the organisation. 

Work-life effectiveness- Another requirement of total reward system focuses on maintaining effectiveness among the work-life with supporting employees in creating a flexible workflow that incursion a healthy equilibrium among the demands of work and other personal responsibilities (Wang et al. 2018). Thus, it helps the employees of Travelodge to become happy.

Recognition- It is another requirement for a total reward system as to get retained in the Travelodge Company employers are required to feel that their hard work is respected as it highlights the ability of staff towards achieving the objectives and goals. Therefore, the recognition factor will in turn support in encouraging the behaviour of their employees in the service organisation. 

Employee talent development- In the service industry lack of development opportunities act as the key reason that results in increasing the employee turnover ratio. Thus, the key requirement in the reward strategy is imparting practices that engage in employee talent development (Paauwe & Boon, 2018). It is required by employees to offer or tailored career development opportunities for attaining the growth objective. On the other hand, employers should provide the resources they need, such as access to training and courses as well as seminars for enhancing their services and abilities. 

Formulate a total rewards strategy

Undertaking proper total reward strategy is considered to be highly crucial as through this it becomes easy to manage the workforce of the firm in the most effective and in turn it brings favourable results also. In case of a company like Travelodge total reward strategy will be developed that will contribute a lot in enhancing the motivation level of the staff and in turn they can work efficiently for the accomplishment of the business goals (Bennett & Levinthal, 2017). 

It is a well-known fact that many crucial factors are present that are considered at the time of designing a total reward strategy. Mainly the elements undertake the need and expectations of the staff members from the company, the attitude of the employer towards the staff, the efficiency of the firm in designing reward strategy etc (Rees & Smith, 2017). All these factors are highly crucial while developing any specific reward strategy for the workforce. Apart from this, the components such as compensation, reward, incentives, career growth, and monetary benefits are also important in designing the total reward strategy program for the business and in turn if the balance in between all the factors is present then in such case it leads to satisfied employees within the workplace. 

The total reward strategy of Travelodge will be developed with the name of employee development plan that will provide both monetary and non-monetary benefits to the staff members those who are working within the company (Xiong et al. 2017). The total reward strategy that will be developed for the staff members working in Travelodge will undertake compensation as one of the key components. Further, this component will undertake incentives, premium pay, incentives, cash recognition and the payment process that assists a lot in enhancing the motivation level of the staff member and in turn, the performance of staff can be improved with the help of this. Mainly compensation will focus on providing a high amount of incentive to the team like on the basis of work done by them, amount of contribution applied in the business affairs etc (Pregnolato et al. 2017). Base salary of the staff will be undertaken to determine by what percentage the salary is required to be increased for enhancing and managing the motivation level of the staff in the best possible manner. 

Another main component of the reward strategy in case of Travelodge will be affiliation that will mainly undertake the commitment of the firm, work environment that is provided to the staff and the trust level. In this component, it is necessarily required for the company to fulfil commitment towards its employees that is mainly associated with providing them the fair working environment, growth opportunities etc. Next component will be work content that will primarily focus on the satisfaction level that staff members will receive from conducting the overall practices within the firm (Shields et al. 2015). Career as another component will primarily focus on personal growth, employee security, training and development of the staff so that they can conduct the assigned operations successfully. At last, the benefit will be another main component where recognition will be undertaken like staff members will be recognised for the work done by them, retirement, health benefits etc.  Therefore, in this way, all these will be the main components of the reward strategy, and they will assist a lot in managing the workforce of the firm.  

Mainly for the formation of the total reward strategy the strategy of the firm has been undertaken like working for the development of the staff. No doubt, the operating environment of the firm is challenging, and in this case, support of staff is needed properly (Aguenza & Som, 2018). Apart from this, the key stakeholders of the firm such as suppliers, employees, government, shareholders are required to be managed properly. The employee is the main stakeholder in case of Travelodge, and its proper management can bring favourable results for the firm.

Explain the advantages of the proposed total reward strategy and how it might satisfy the need of employees

The total reward strategy will assist in providing numerous benefits to Travelodge and in turn it will become possible to render services to the target market in the best possible manner. One of the main advantages of the proposed employee development plan as a reward strategy is that it will enhance the motivation level of staff (Paauwe & Boon, 2018). Another key advantage associated with the proposed reward strategy will be a high level of employee engagement in the business. Further, it is a well-known fact that the ultimate objective of every company is to engage its customers in the business practices and for this, it is possible to develop an effective reward strategy. 

So, the proposed reward strategy will lead to a high level of staff engagement in business affairs. Proposed reward strategy will contribute a lot in developing a positive environment within Travelodge where all the employees will compete with one another for conducting the business practices, and in turn, it will contribute a lot in gaining a competitive edge over the rivalry (Gerhart, 2017). The employees will start positively perceiving the firm, and it is also another benefit, and in turn, they will become highly loyal towards the affairs of the company in the best possible manner. Further, it is a well-known fact that for conducting the organisational operations smoothly highly level of staff loyalty is required, and this assists a lot in accomplishing the business goals in the most effective manner. 

Mainly the key advantage associated with the total reward approach is that it helps in enhancing the satisfaction level of the staff, increases their loyalty towards the firm, encourages their active participation in the business affairs etc (Wang et al. 18). Within Travelodge, the implementation of the proposed reward strategy will help in creating a positive environment within the workplace where their work satisfaction will increase, and in turn, they will actively participate in the business affairs also. The need of the staff members linked with their personal growth, job satisfaction, career advancement etc. will be satisfied with the help of the proposed reward strategy.

Determine key communication components of the total reward system 

Different communication components of the total reward strategy are present that can support a lot in highlighting the ultimate objective behind the formation of the total reward strategy. The communication component involves message, sender, receiver and encoding. All these are the primary communication components of the total reward system (Bashir et al. 2018). One of the most crucial components is message where the proper message will be developed linked with providing adequate benefits to the employees through reward, providing them development opportunities etc. 

The central part will be designing appropriate message so that the receiver can easily understand the total reward system. In case if the message is not designed properly then in such case, various hurdles will be faced from the communication point of view. The second main component is sender that will highlight who will send the message. The employer will be the main sender and they will highlight the total reward system developed (Kahya, 2018). The receiver will be another main component of the total reward system where employees working in Travelodge will receive the message associated with the proposed reward strategy developed by the firm. Encoding will be another main component where employees will encode different elements into meaningful sentences to understand the reward strategy in the proper manner. 

Further, it has been identified that several main elements of total reward communication program are present that are required to be managed properly. The elements undertake message, sender, receiver, encoding etc (Punjaisri & Wilson, 2017). All these elements are most crucial and in case if they are managed most effectively then it becomes quite easy to share the information in the best possible manner and in turn, it brings favourable results also. The proposed reward strategy is highly crucial in case of Travelodge and fact if the strategy is properly developed but it is not communicated properly then it is of no use. Hence, it is highly crucial in case of the firm to manage all the communication elements or the components in the proper manner so that employees can easily understand about the information linked with reward strategy shared with them (Pang & Lu, 2018). Proper communication will undoubtedly assist in stakeholder management, and in turn, the need of employee as one of the stakeholder can be easily satisfied by Travelodge in the best possible manner. This can also allow in enhancing the business performance and company can easily gain a competitive advantage over its rivals.

Strategy for devising competitive pay structure 

Forming proper pay structure is considered to be highly crucial as it becomes easy for the firm to manage its overall employees most appropriately and in turn, it brings positive outcomes. Different strategies are present with the help of which it is possible for Travelodge to devise competitive pay structure (Anderson, 2017). One of the best plans is to undertake the industry standards where in this strategy it is possible to undertake the industry standards as the base and on the basis of this the company can decide high pay for its staff members. This strategy can be adopted for setting right compensation for the staff members, and this can assist in enhancing their motivation level in the best possible manner.

Another strategy for devising pay structure is by undertaking competitor analysis where the firm can easily undertake the pay that is provided by the competitors that are operating in the same industry. These strategies can assist a lot in deciding the right pay that can be offered to the employees, and through this, the performance of the firm can surely enhance with the help of this (Quan et al. 2017). Apart from this, some secondary strategies for devising pay structure involves performance evaluation of the staff members, and this strategy can also assist a lot in deciding the right pay for the employees so that they can actively participate in the business affairs.


From the entire report, it has been concluded that to motivate and retain the employees within the organisation it is required by the service organisation to engage in delivering an effective reward strategy. In order to propose the reward strategy, human resource manager has focused on assessing key components of the total reward strategy that mainly includes work content, career, affiliation, benefits as well as compensation. Through which effective strategy has been formulated. Apart from this, it has been also summarised that the proposed reward strategy benefits the cited organisation in satisfying the requirement and need of the employees. However, it has been that the proposed reward strategy will lead to a high level of staff engagement in the business affairs. 

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