Title: Perceptions of top management about the total rewards statement: a case study in the retail sector

Authors: Dale J. Albrecht; Babu George

Addresses: Alonos, Inc., Dallas, Texas, USA; University of Texas, Dallas, Texas, USA; Texas Woman's University, Denton, Texas, USA ' Fort Hays State University, Hays, Kansas, USA

Abstract: A total rewards statement (TRS) is a summary of compensation, benefits, and perquisites that an employer provides to their employee. This qualitative case study examines the TRS related perceptions of senior managers of a large retail company headquartered in the USA and operates over 3,000 retail locations across the USA and Mexico. In particular, it investigates whether employees have a change in their perceptions of their employers in the light of TRS adoption. The findings suggest that employees react to TRS in a manner that broadly aligns with the tenets of the social exchange theory (SET) and the theory of incentives. Certain issues related to the principal-agent problem were also evident in the employee perceptions. It was observed that the use of TRS created positive vibes and became a lever to subtly communicate change advocacy in the case company. In other words, TRS could foster both social and economic exchanges in organisations.

Keywords: total rewards statement; TRS; social exchange theory; SET; agency dilemma; employee benefits; total rewards; compensation; incentives.

DOI: 10.1504/IJQRS.2018.091555

International Journal of Qualitative Research in Services, 2018 Vol.3 No.1, pp.36 - 58

Received: 01 Aug 2017
Accepted: 26 Nov 2017
Published online: 04 May 2018 *