Projected Total Rewards Program


ProjectedTotal Rewards Program

ProjectedTotal Rewards Program

Remunerationcosts are an important aspect of any organization’s budget(Kerzner,2013). With the contemporary changes in the human resourcemanagement, the traditional ways of remunerating employees has beenfacing a myriad of challenges the private and public sectors of theeconomy. The current economic and business environment has manychallenges that originate from inside of the organization and othersoutside of the organization. The challenges cause affects theproductivity of employees, which in turn affects the performance ofthe organization. Challenges arising from the need for a stablereward system also create existential threats to organizations of alltypes. In the modern context, reward systems are shifting towardsmanaging transformation through acknowledging the contribution ofemployees to the progress of the organization. Companies arecurrently using reward systems as specific action strategies that areset to enhance and achieve objectives and as a method of outlookconversion(Meredith&amp Mantel Jr, 2011). The discussion, therefore, breaks down thereward system of L3 Corporation in the scope of categories that payattention to the motivation of money and the substance of all theactions and outcomes related to it. The core intention of analyzingL3 corporation’s reward system is to demonstrate the how a moderntotal reward system should coincide with the ethical framework of theorganization and the pursuit of its employees’ needs. Totalreward, therefore, focuses on a balance between the performance ofindividual employees and their enjoyment of the rewards available tothem.

Thepurpose of the Paper

Thetotal reward system of L3 Corporation is the focus of this analysis.After an incisive analysis of the capabilities, goal orientation,objectives, challenges, values, and the core competencies that areunique to L3 Corporation, its reward philosophy attracts arecommendation of changes that would make the workforce morecompetitive in the current business environment.The three aspects ofthe organization’s reward system that will form the basis of therecommendation of are three categories of the offerings thatconstitute its reward system, the segmentation of its work force, andthe requisite capabilities and competencies in the organization. Thethree aspects motivate the current changes that should be institutedin the organization. The changes target the aspects because they arethe core of all the reward system.

and Description of L3 Communications Corporation

Capabilities: The Company is am market leader in supplying secure radiocommunications and encryption solutions for different types oforganizations, institutions, governments, and militaries around theworld. L3 has copyrights to use a family of Falcon radio systems thathave software the gives it tactical features with applications thatcan be used by individuals and vehicles owners. L3’s productcapabilities influenced its selection as a consortium firm with theUnited States military in the provision of Joint Tactical RadioSystem through Harris (one of its major partners since 2010).Thecompany has a great track record for providing high performanceintelligence gathering, satellite communication, and processingimages for the Department of Defense. The company also provides thesame services to other government agencies. Other services the L3provides include real-time communication systems that enableorganizations to install surveillance systems, wideband, airbornecollections systems, and high data rate. L3 has unique competenciesin the communications sector that emanate from the capabilities ithas demonstrated over the years in providing essential communicationsystems for its clients.

Objectives–L3 Communications objective is to provide subcontracting programsthat meet the social- economic needs of clients. The company alsoseeks to ensure that it achieves the goals set in its subcontractingstrategies through enhancing the capabilities of small businessesthrough subcontracting initiatives. The organization also seeks topromote the business prospects of disadvantaged groups such as youth,women, veteran, and other small business that need the mentorship ofthe company to grow. Finally, L3 Corporation’s objective is toimprove competitive capability of minorities such as blacks bylinking their companies to programs such as Mentor-protégé programssponsored by the government. Considering that L3 has extensiveexposure to government procurement processes due to itscompetitiveness the objectives stated above vitally enable thecompany to build a network of other players that complement its rolein communications industry.

Values:L3 Corporation’s core values are as follows:

Customerfocus: All decisions in the company aim to enhance and maximizecustomer experience. To achieve the core value of customer focus, L3aligns

Continuousimprovement: Through innovation L3 seeks to continuously challengethe status quo through phenomenal solutions for its clients.

Quality:L3 values recognition in its markets through its high qualityproducts that are responsive to industry needs and create value outof investments. True to this core value, L3 sets the pace in thecommunications industry.

Innovation:Innovation guides every aspect of business judgment at L3Corporation. L3 leaders believe that innovation is the ultimate wayto deal with emerging business challenges, improve products andcreate value out of different processes.

Integrity:Business conduct inside or outside of the organization is governed byinternal and industry ethics. The company also values the need formutual trust with employees, customers, suppliers, shareholders, andthe community.

Respectfor the individual: The company values fairness, courtesy, anddignity as ways of dealing with different people associated with it.Respect for all is reinforced through an emphasis on diversity.

Teamwork: The organization values the importance of collaborative efforts thataim to achieve the common objectives. The company promotes teamworkby encouraging information sharing, emphasizing on value addition,developing and earning the trust of other players in the industry,instilling cooperation across corporate boundaries, and empoweringemployees to be part of decisions that cause change.

Thetotal Reward philosophy of L3 Corporation

Thetotal reward philosophy is to take into consideration the individualperformance of the employee in the scope of existing market trends.The reward s also go through the an annual review process that setsnew standards in a manner that promotes fairness and equitability.Before decisions about rewards ensue, the company utilizes industrydata that serves as the basis for benchmarking.

TheSegmentation of L3 Corporation’s Workforce

L-3Corporation’s workforce is segmented based on the differenttechnical aspects of the company’s production line. There arethree major lines of production through which employees aresegmented. The first line of production is the Cyber intelligence,reconnaissance, and surveillance. The second line of production isthe integrated communications, and third is the secure space andsenor systems production line. These lines of production are equalin terms of importance because they all lead to production of all theproducts the company offers on the market.

Thecyber intelligence, reconnaissance, and surveillance line ofproduction employees: Employees in this line of production providecyber defense technical knowledge and workmanship to developsolutions for the industry. They design and develop products of cyberprotection which the company sells to the market.Thus, customerworking in this line of work must have the knowledge on cybersecurity and be able to come up with innovative solutions thatenhance productivity. Employees in the cyber intelligence,reconnaissance, and surveillance line of production most work inCamden, Maryland where the two stations of the Annapolis and Camdenare located.

Theintegrated communications line of work: Employees working in thisline of production integrate many communication platforms. They aremostly communication technologists.

Sensorsystems and secure systems line of production: The employees provideservices that require experts in issues such as satellite encryptiontechnology, tracking and control, and mission’s data space. Theseemployees mostly work on government procured services because thesensor space and sensor systems line of production provides the mostservices to the department of defense.

Requisitecapabilities and Competencies of L3

L3corporation employees need to have capabilities and competencies intechnical communications. They need to possess the attributes ofsymbolic-analytic competency which are(Allen&ampKilmann, 2001):

Experimentation: The employee needs to have skills on the usability of research thataims to find out the end of information in addition to the means ofusing particular information to make particular products. They alsoneed to have the knowledge and skills to apply task-support deliveryfor products that need information.

Collaboration:The employee must have the capability and resilience to work ondistributed teams with closer application of the collaborationpractices already initiated inside the company. They must also havethe commitment to improve the collaboration patterns in the company.

Abstraction:Production in the company lays much emphasis on the need foremployees to apply the skills they possess in articulation ofpatterns, structures, and the links between large amounts ofinformation that is stored in huge databases in which the informationis unstructured in a manner that limits its use. Abstraction is thecompetency that drives innovation because the company offersdifferent services based on the needs of the customer hence,employees always face the challenge of coming up with uniqueinformation abstraction t that guide the information encryptionprocess.

Systemthinking: The customer should have the knowledge and skills toarticulate different patterns, relationships, and structures in amanner that fits specific task domains, security or informationproblems, or projects. The quality of being a system thinker shouldbe tactical as well as strategic in a manner that can impact on thestructure of an enterprise an institution, or a community.

RecommendedChanges for the entire reward system and justifications

L-3corporation should change its total reward system from acompensation-based system to one that improve the personal growth andprofessional improvement of employees coupled with motivation. Implementing a new total reward system to replace the existing isakin to executing any comprehensive transformation initiatives. Thus,L-3 should initiate a change in the reward system in four phases: 1)Assessment 2) Design 3) Execution, and 4) evaluation.(Larson, &ampGray, 2011).

Theassessment phase

L-3’sproject teams will evaluate the existing total rewards system fromwhich the ideas of change should emerge. The project team will uselong sessions of different tasks such as finding out and compilingthe industry benchmarks, analyzing the existing reward strategies,assess employee attitudes towards the existing reward system,reviewing literature about total reward systems in the technicalcommunications industry, and compile a report that highlights all thefindings.

Thedesign phase of the new total reward system

L-3’sproject team will identify the employee and company attributes thatwill be fit for rewarding. At this stage, the team will alsoascertain the specific types of the rewards employees will accessbased on a full range of reward strategies such as professionaldevelopment, personal development, compensation, and the workenvironment.

  1. Compensation: The compensation aspect of the new reward system should pay attention three major components such as the pay level, pay increases, and incentives such as cash bonuses.

  2. Benefits: Benefits such as insurance cover for employees and health cover makes up the greatest proportion of any organization’s total reward cost. L-3, therefore, needs to designs a benefits package that has two vital issues 1) the manner in which the employee understand the details of the benefits package and 2) the latitude of choice that employee will have in choosing the best benefits that satisfies their interests.

  3. Professional and personal development: Considering that L-3 operate in a technical field the new reward system should aim to provide opportunities for training, performance management, and career development. These opportunities should enhance employee skills that they continuebeing valuable to the organization and the industry.

  4. Work environment: L-3 needs to infuse the aspects of a positive work environment such as recognition, job design, and the work/life balance.

TheExecution Phase

Afterdesigning a total rewards systems based on the components such ascompensation, benefits, personal and professional development, andthe work environment L-3’s the next step is make it operational.The execution phase consideration on issues such as eligibility, topmanagement support, project management, and measurement is veryimportant.

Eligibility:All employees at L-3 Corporation should be eligible for most of thetotal rewards proposed. With support staff, L-3’s management needsto recognize that employees at all levels enable the line personnelto deliver on their competencies.

Topmanagement support:Executing a total rewards system is anintervention strategy that will involve the top management of L-3.The top management must show that it support the new total rewardsupport so that employee buy into the change. Top management membersshould also be covered in the new totalrewards system.

Projectmanagement: Project management skills are required to execute the newtotal rewards policy(Turner,2014). A lead system is ideal for L-3 since reward system willencourage employees to meet the key strategic goals. Thus, L-3’sprojects needs to make the plan operational as a precursor to any newbusiness strategy. A lead system will show employees the company’scommitment to invest upfront to have employees secured through thetotal reward system.

Measurement:The criteria to receive each reward must clear to all employees.Specifically, aspects such as customer service, individualproductivity, and company profitability should guide the new totalreward system. Thus, the information that generates data on theseaspects should be valid and reliable so as to validate themeasurement criteria for various rewards.

TheEvaluation Phase

L-3Corporation needs not overlook this phase because it enables projectteam to compare the actual results of new total reward system againstdesired results. Evaluation involves measuring outcomes andinterpreting the findings. Some of the outcomes the project teamshould measure during the evaluation phase include (with theirrespective sources of data):

Evaluation metrics


Source of information

Job satisfaction

Work surveys


Income statements


Operational reports


Income statements


Income statements

Customer employee complaints

Human resource information system

Alignment with L-3’s strategic plan

Senior management

Recruitment and retention

The human resource information system

Therisk of failure to implement the program

  1. The risk of demotivation- L-3’s old total reward system that did not adequately include support staff was demotivating since they also deserve to benefit from it(Chen &amp Hsieh, 2006).

  2. The risk of discrimination law suits- women and minorities constitute a majority of support employees. The old system does include these groups in L-3’s total reward system hence, employees or unions may sue for discrimination.

  3. Future inability to implement other total reward systems that will fit with the changing times in the market

Theopportunities the new total reward system will give to L3

Acompetitive business advantage:The reward system empowers employeeswith skills that enhance their competitive ness in theindustry(Bartol&ampSrivastava,2002). As a result, L-3’s will also improve in the long-run throughthe aggregate contributions of all employees who are keen to climbthe reward ladder.

Productivitygains: the reward system aims to empower every employee with theskills and rewards that fulfills their professional goals.Thus, thetotal productivity of the entire workforce is likely to improve andL-3 stands to gain from that.

Thenew reward system makes it easier for L-3 to manage performance: Thetotal reward system is performance-based. L-3 has the opportunity itsperformance management with the performance metrics for differentrewards.

Motivatedstaff: The total reward system is motivational because it haselements that focus on every employee rather than a selected few. Thefact that top management is part of reward system ensures theirsupport and involvement in making to succeed.

TimelineImplementation of the program


Thediscussion focused on the metrics and the role they have on theperformance of L-3 Company. The discussion analyzed a metric systemthat measures the potency of the reward system that L-3 Corporationuses to ensures that employees get the best of the services theyprovide to the company.The implementation of the new total rewardsystem will have its own challenges. For L-3 to succeed, the projectshould ensure that all four phases of implementation are executed. Each phase requires careful consideration and the willingness of theproject team to solicit inputs from different sources in theindustry. Nonetheless, the effort is worth the investment of time andfinancial resources because it has the all the attributes that cancontinue to give L-3 its competitive edge in the industry.Specifically, the total reward system will generate the intendedoutcomes in different facets of the corporation such as employeeretention, service quality, improved productivity, and jobsatisfaction. Although L-3 has a competitive age in thecommunications industry, the need to create efficiency through aproductive human resource that matters most in the technical fieldsis not an option. A well-defined reward system implemented throughfour stages of assessment, design, execution, and evaluation createsstrategic value needed for future competitiveness.


Allen,R. S., &ampKilmann, R. H. (2001). The role of the reward system fora total quality management based strategy. Journal of OrganizationalChange Management, 14(2), 110-131.

Bartol,K. M., &ampSrivastava, A. (2002). Encouraging knowledge sharing: Therole of organizational reward systems. Journal of Leadership &ampOrganizational Studies, 9(1), 64-76.

Chen,H. M., &amp Hsieh, Y. H. (2006). Key trends of the total rewardsystem in the 21st century. Compensation &amp Benefits Review,38(6), 64.

Kerzner,H. R. (2013). Project management: a systems approach to planning,scheduling, and controlling. John Wiley &amp Sons.

Larson,E. W., &amp Gray, C. F. (2011). Project management: The managerialprocess.

L-3Communications Holdings. (2015). Available at

Meredith,J. R., &amp Mantel Jr, S. J. (2011). Project management: amanagerial approach. John Wiley &amp Sons.

Turner,J. R. (2014). The handbook of project-based management (Vol.92).McGraw-hill.





Assessment phase

Contacting focus groups

  • Carrying industry benchmark surveys

  • Surveying employee attitudes towards the new reward system

  • Examining the existing policy framework in the industry

  • Reviewing related literature

  • Wring the assessment report

5 months

Design phase

  • Determining compensation

  • Determining benefits

  • Determining the work environment issues of reward

  • Creating synergies

3 months

Execution phase

  • Determining eligibility criteria

  • Securing top management support

  • Project management

  • Measurements

5 months

Evaluation phase

  • Measuring the outcomes of the new reward system

  • Interpreting the findings

3 months