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When rewards are not just financial

A good company’s human resources are key to its success. The same can be said for the good businessperson. This is why HR management has become the heart of a vast number of case studies on the methods and approaches to use depending on the situation arising.One such method is the “total rewards” approach, which Michael Carbone, Gabriele Martinotti, Giovanna Paliotta, and Roberta Scricco analyse in a good working paper drafted during the last master’s course in human resources and organization organized by the Fondazione ISTUD.

Motivating – as the authors explain – has been part of corporate vocabulary for just over half a century.

This term became central once the business universe became aware that it was important to attract and retain the best resources.

The research team’s reasoning begins here, dealing immediately from a theoretical point of view with the method of total reward seen as a system of recompense that includes a wide range of remuneration tools which the authors say, “shows it is able to meet, in a differentiated manner, the needs of all types of workers.”More precisely, the authors define the total reward system as a method that “determines a type of remuneration that does not consider the sterile logic of payment in monetary and economic terms, but addresses the prospect of a series of values that enrich the employee and the company, both in an individual perspective and in the daily relationship between these two players.

”The research then progresses in a well-defined direction.The first section introduces several of the main motivational theories and focuses on defining the typical elements of total reward systems.The second section lays out the building blocks required to construct a remuneration policy, and all the relevant regulations. The third section aims to analyse trends in the organizational world and imagine future prospects. The fourth section, finally, carries the theory into practice by analysing the cases of two large companies (Luxottica and Pirelli), and an SME (Piovan).

The work of Carbone, Martinotti, Paliotta and Scricco is precious, and effectively tackles a complex subject in a clear, concise manner.A good basis for starting to understand more, and more clearly, the variegated world of human resources.

Il sistema di total reward: attrarre, trattenere e motivare le risorse umane [The Total Rewards System: Attracting, Retaining and Motivating Human Resources]

Michael Carbone, Gabriele Martinotti, Giovanna Paliotta, Roberta Scricco

Fondazione ISTUD, Master in Risorse Umane e Organizzazione, 2015-16