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WGU D434 Task 1 Total Rewards Plan Analysis
And Recommendations Updated Study
Solutions 2025-2026 Updates
A. Total Rewards Plan
1. Three gaps are lower variable pay opportunities, limited well-being and work-
life balance benefits, and lack of a formal recognition program. Sparkit’s
variable pay budget is 6.25% of the base pay, but the market average is 12%.
Market competitors offer additional incentives like signing bonuses at 35%,
long-term incentives at 12%, and profit sharing at 18%. Sparkit does not
provide that, however.
Sparkit offers no hybrid work options, paid parental leave, dependent
tuition assistance, flextime, student loan repayment, childcare, or fertility and
adoption assistance. Where market competitors provide these types of
benefits. The 401(k) match is only at 2%, which is significantly lower than the
market's 6% match.
Sparkit has no structured recognition platform or rewards program in
place. However, 53% of market competitors are offering recognition programs
and provide peer-based rewards.
a. The impact of gaps when it comes to retention is that employees might
feel like their performance is not being rewarded properly. This can lead
them to seek compensation at a different organization. Without
competitive bonuses or long-term incentives, employees might lack any
motivation to stay there for the long haul.
, 2
The lack of flexible work arrangements and family-friendly benefits
can cause employees to want to look at other competitors with stronger
work-life balance options. Having a low 401(k) match can reduce the
longterm financial security appeal of staying with Sparkit.
Without any regular recognition, employees will feel undervalued.
This can reduce job satisfaction and employee engagement. Recognition
programs are vital for retention. Competitors who have a structured
recognition program might attract employees who are looking for
appreciation.
b. Two areas that are strong are their competitive base pay and
comprehensive medical benefits. Sparkit’s reward package may be 30%
lower than the market however, their base salaries are high. This is
something that they can attract talent with.
Sparkit provides 100% employer-paid short-term disability, life
insurance, which is up to 3x their salary, and an HSA contribution, which is
%750 per employee. This exceeds a lot of the market offerings in the
surrounding area.
B. Revised Total Rewards Plan
1. Recommendations are to increase variable pay from 6.25% to 10% of
base pay and introduce a tiered performance-based bonus system.
Implement a digital recognition platform with peer-to-peer and supervisor
recognition. Include monetary rewards like bonuses and milestone
WGU D434 Task 1 Total Rewards Plan Analysis
And Recommendations Updated Study
Solutions 2025-2026 Updates
A. Total Rewards Plan
1. Three gaps are lower variable pay opportunities, limited well-being and work-
life balance benefits, and lack of a formal recognition program. Sparkit’s
variable pay budget is 6.25% of the base pay, but the market average is 12%.
Market competitors offer additional incentives like signing bonuses at 35%,
long-term incentives at 12%, and profit sharing at 18%. Sparkit does not
provide that, however.
Sparkit offers no hybrid work options, paid parental leave, dependent
tuition assistance, flextime, student loan repayment, childcare, or fertility and
adoption assistance. Where market competitors provide these types of
benefits. The 401(k) match is only at 2%, which is significantly lower than the
market's 6% match.
Sparkit has no structured recognition platform or rewards program in
place. However, 53% of market competitors are offering recognition programs
and provide peer-based rewards.
a. The impact of gaps when it comes to retention is that employees might
feel like their performance is not being rewarded properly. This can lead
them to seek compensation at a different organization. Without
competitive bonuses or long-term incentives, employees might lack any
motivation to stay there for the long haul.
, 2
The lack of flexible work arrangements and family-friendly benefits
can cause employees to want to look at other competitors with stronger
work-life balance options. Having a low 401(k) match can reduce the
longterm financial security appeal of staying with Sparkit.
Without any regular recognition, employees will feel undervalued.
This can reduce job satisfaction and employee engagement. Recognition
programs are vital for retention. Competitors who have a structured
recognition program might attract employees who are looking for
appreciation.
b. Two areas that are strong are their competitive base pay and
comprehensive medical benefits. Sparkit’s reward package may be 30%
lower than the market however, their base salaries are high. This is
something that they can attract talent with.
Sparkit provides 100% employer-paid short-term disability, life
insurance, which is up to 3x their salary, and an HSA contribution, which is
%750 per employee. This exceeds a lot of the market offerings in the
surrounding area.
B. Revised Total Rewards Plan
1. Recommendations are to increase variable pay from 6.25% to 10% of
base pay and introduce a tiered performance-based bonus system.
Implement a digital recognition platform with peer-to-peer and supervisor
recognition. Include monetary rewards like bonuses and milestone
