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ARTICLE REVIEW
Title The Future of Reward Management:
From Total Reward Strategies to Smart Rewards
Author Duncan Brown
Publication Type Journal Article
Journal SAGE journals
Journal Homepage http://www.sagepublications.com
Year of Publication 2014
Keywords Total Rewards, Reward Management, Flexible Benefits, HR
Profession
Author Background Duncan Brown is a Principal consultant working for Aon
Hewitt based in London. He is an adviser, a researcher and a
prolific author and blogger on pay and reward issues and sits
on the Compensation & Benefits Review editorial board.
Article Reviewer FISIHA FIKIRU ASRAT
SUMMARY
The article discusses how the current philosophy of total rewards is one that businesses use
to claim that they are providing a complete rewards package to employees; however, the
real meaning of this term has been lost. In fact, the author goes on to explain that by creating
smart rewards that are more focused on employee engagement businesses will have better
results. Brown (2014) explains, "With a clear foundation in values and principles,
employers can be more flexible and responsive in how they deliver those principles into
practice." (p. 149).
This article offers an argument on the terminology and concept of “total rewards” is
become increasingly meaningless and outdated. The study also tried to reveal four
components of this emerging reward management approach: a simpler and clearer focus
on a few core values and principles, a stronger basis in evidence and measurement, more
emphasis on employee engagement through rewards and improved and more open
communications and line management of reward. The result that has been identified by
the article showed that adapting and tailoring this type of approach is much more likely
to create the genuinely business-enhancing and employee-engaging reward practices in
our contemporary context that reward professionals and their policies aspire to.
FISIHA FIKIRU ASRAT GSD/8253/12 AAU, SC- HRM
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STUDY PURPOSE
Duncan Brown have presented a realistic and relevant topic field of human resource
management specifically in the study of compensation and reward management. To
mention some of the reasons why the research in the area of smart reward is very important
instead of total reward i.e. because smart reward is simpler and clearer, evidence-based,
more practical, more realistic and more engaging and open than the total reward strategies
of old. The researcher define the purpose of his article (the application of smart reward
instead of total reward) in concisely formed sentences that evolves the overall direction or
focus for the study. It is possible to say that the study tries to assess a current situation and
predict what may happen in the future.
The authors of the article also tried to define the research problem and significance of the
study briefly, but not in detail. Some of the significance of the study was to clarify and
create a better understanding on the tremendous advantage of the concept of the newly
smart reward. On the other hand, a list of keywords is provided by the article without their
specialized terminology or definition of terms. Therefore, it is very difficult to create a
common understanding of those key words or subject throughout the article.
Brown (2014) explains, “Whatever we call it, I have argued that the unthinking overuse of
the concept of total rewards in our contemporary context can be damaging to the
employment and reward brand of employers and reward professionals. What I have termed
a smart rewards approach needs to be applied.” From this statement, we can understand
that the researcher decided to follow persuasive approach.
METHODOLOGY
From different scholarly journals, different books, and websites, Secondary data and
personal opinion were entirely used by the article. However, the article was totally unable
to describe the methodological approach clearly, the type of research done, sample size,
technique of data analyses used, scope of discussions/analysis, applied tools or materials
used in the research in detail.
The article used secondary data analysis technique; the primary limitation associated with
this kind of research design is lack of reliability and credibility. The study might contain
errors as the primary/original researcher may record only what they want to hear ignoring
data that does not conform to the research project’s hypothesis, so there is a high chance
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of error, subjectivity and biases. Secondary data is also known for a limitation like
inappropriateness of the data and lack of control over data quality. On the hand, type of
research in the article was not mentioned, the rationale/proper justification for choosing the
kinds of research selected and sources where from they came to choose that particular
method. The other limitation might be lack of validity and reliability test as validity and
reliability is affected study design.
DISCUSSION
Major discussion presented by the article are
- In rewards management, we need to move from the generic, long-winded and inflexible,
low-investment, total rewards strategic rhetoric, with its plain vanilla, “chocolate box”
flexible benefits plans.
- Any decent reward strategy should be able to display a clear “pathway” from business
goals, through people needs and strategy to reward policies and practices. With a clear
foundation in values and principles, employers can be more flexible and responsive in how
they deliver those principles into practice.
- We need to be much effective using financial data, showing the costs and benefits of
reward changes, the major risks and how they are being managed.
- Despite the fact that employee perceptions of the quality and openness of internal
communications has a very high .92 correlation with overall employee engagement levels.
The discussion part of the article was tried to interpret and describe the significance of the
findings in light of what was already known about the research problem being investigated
and explain new understanding about the problem. The author tried to formulate a deeper,
more profound understanding of the research problem being studied.
ETHICAL ISSUE, SUGGESTION FOR FUTURE RESEARCH AND REFERENCE
The article was unable to state any limitations associated with the research aim and
objectives, any variables that might be difficult to acquire or utilize, research type/method
selection without proper justification. The study tries to predict what may happen in the
future, it also tried to predict and address the specific effects of the concept of “total
rewards, its ineffectiveness and inefficiency. The other limitation of the article can be
considered as the failure to addressed research problem within the settings of different
context, location and/or culture. The reviewed article try to consider only UK and USA.
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Neither any ethical issue nor any suggestions for future research are not either integrated
into research limitations section or in the separate section. It also fails to suggest a
framework for future research to choose either a quantitative or a quantitative approach in
their further study. Therefore, it is possible to say that above article does not come across
with any suggestion for future research by adding new variables or other special
measurements to address unanswered aspects of the research problem.
The APA citation style was used properly in the research paper. In the text citations, the
researchers referred 16 different books, journals and websites from conventional and
credible source and use them correctly. These references can also be seen properly cited in
the ‘Reference’ section of the research article. As far as my trial, I found that it is possible
to trace the right pages in the right volumes, author and year among the mentioned
reference list by the article. Most of the references used by the article are timely, recent,
relevant both in the content of the publication and in the subject area and cited in
accordance with the content.
All of the reference materials listed are recent and written from 2008-2014 and this can be
taken as another good quality for the reference technique used by the article. Even if no
reference limit exists, the above article full fills the most of the restriction put by many
journals on the number of references authors are allowed to include. In other word, citations
are prioritized. Therefore, the above research article uses excellent referencing technique.
MY PERSONAL REACTIONAL ON THE ARTICLE
- The article is poor in research methodology part as the study paper primarily used
secondary data analysis technique; the article is vulnerable to a high chance of error,
subjectivity and biases. Primary data analysis has a better outcome and it is highly
recommended to apply.
- The study tries to predict what may happen in the future. This is the good part of the
article.
- The article failed to address the research problem within the settings of different
context, location and/or culture. It is highly recommend to repeat the research in
different location and culture.
- Article does not come across with any suggestion for future research and ethical
consideration. The article also unable to state any limitations associated with the
research aim. This can also be consider the greatest failure of the paper.
FISIHA FIKIRU ASRAT GSD/8253/12 AAU, SC- HRM
