Take Off Program
Dr. Guido Gianasso
Vice President, Human Capital
Take Off Program April 2012
Rewards
Compensation:
Is it important to motivate and
retain employees?
Take Off Program April 2012
Factors affecting job attitudes as reported in 12
investigations
Factors characterizing 1,844 events on
the job led to ext...
Motivation versus hygiene factors
Motivation factors
Factors related to the unique
human characteristic to
achieved and, t...
Factors which motivate and retain
employees
Work itself
Recognition and promotion
opportunities
Personal growth and lea...
Compensation and Administration
 “Hygiene” factors
If not properly managed – strong
demotivational factors
They do not ...
Remuneration – a hygiene factor
Herzberg, Schein
 If the employee is paid below market
average, he/she will be demotivate...
If you were the CEO,
what factors would you
consider in designing a
compensation system?
Take Off Program April 2012
Five Objectives Of A
Remuneration System
Strengthening corporate
culture and supporting
strategic objectives
Competitivene...
Evolution of
Compensation
Systems
Take Off Program April 2012
Evolution in Compensation Systems
 Salary scales to broad bands
 Salary increases based on seniority to merit-
based inc...
http://icsc.un.org
WORLD BANK GROUP NET SALARY STRUCTURE
Effective May 1, 1996
Grade Minimum Midpoint Maximum
29 146,520 161,190 175,860
28 1...
2000 Salary Scale
Canada
Effective from January 1, 2000
Annual Salaries in CAD
Grade Minimum Midpoint Maximum
1 21,800 25,...
IATA Salary Bands
A Support Staff
Entry to Advance
B Support supervisors
Highly Skilled Tech support
C Managers
Specialist...
IATA Compensation
Strategy
Take Off Program April 2012
Drivers: IATA Compensation Strategy
Based on Merit/Performance
Geared to
Market conditions
Favors
Lower-paid Employees
Applying the Compensation Strategy
Based on Merit/Performance
Rating on Performance Assessment
Geared to
Market conditions...
IATA offices in 60 Countries
 Category A – high inflation/currency
devaluation
 Category B – salary structure not in lin...
2012 “A” countries
 Across-the-board increase
 Effective 1 Jan 2012
 Based on a combination:
Actual inflation rate fro...
Applying the Compensation Strategy
Based on Merit/Performance
Rating on Performance Assessment
Geared to
Market conditions...
22
Performance-based salary increases
 Line supervisors will be able to grant salary increases within the
following range...
23
Extraordinary Performance Bonuses
Recognizing individuals with unique contributions
5% to 10% of annual base salary w...
Other Bonus Programs
Variable Compensation Program
Directors
Country Managers
Sales Incentive Plan
Sales Team
April 2...
25
 For promotions
 Confirmed throughout the year
 Salary changes will be effective at date of promotion
 For other ad...
Employee Recognition Programs
 Individual and team awards for special
achievement
 Four levels
 Platinum
 Gold
 Silve...
Rewards
Take Off Program April 2012
Upcoming SlideShare
Loading in …5
×

Take Off Program

580 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
580
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Take Off Program

  1. 1. Take Off Program Dr. Guido Gianasso Vice President, Human Capital Take Off Program April 2012
  2. 2. Rewards Compensation: Is it important to motivate and retain employees? Take Off Program April 2012
  3. 3. Factors affecting job attitudes as reported in 12 investigations Factors characterizing 1,844 events on the job led to extreme dissatisfactions Factors characterizing 1,753 events on the job that led to extreme satisfaction growth Advancement Responsibility Work itself Recognition Achievement Security Status Relationship with Subordinates Personal life Relationship with peers Salary Work conditions Relationship with supervisor Supervision Company policy and administration -10-20-30-40 0 10 20 30 40 50
  4. 4. Motivation versus hygiene factors Motivation factors Factors related to the unique human characteristic to achieved and, through achievement, to experience psychological growth Hygiene factors Factors related to the built – in drives conditioned to the basic biological needs (hunger- >money->drive) Stimuli for the growth needs are the job content Stimuli inducing pain – avoidance behavior are in the job environment Extrinsic to the job Company administration, supervision, remuneration, work / life balance Intrinsic to the job Achievement, work itself, responsibility, growth Needs Stimuli
  5. 5. Factors which motivate and retain employees Work itself Recognition and promotion opportunities Personal growth and learning April 2012Take Off Program
  6. 6. Compensation and Administration  “Hygiene” factors If not properly managed – strong demotivational factors They do not in themselves ensure motivation and commitment April 2012Take Off Program
  7. 7. Remuneration – a hygiene factor Herzberg, Schein  If the employee is paid below market average, he/she will be demotivated But  A good remuneration is not in itself sufficient to motivate the employee April 2012Take Off Program
  8. 8. If you were the CEO, what factors would you consider in designing a compensation system? Take Off Program April 2012
  9. 9. Five Objectives Of A Remuneration System Strengthening corporate culture and supporting strategic objectives Competitiveness on local labor market Cost control (income / cost ratio) Internal equity Employee motivation
  10. 10. Evolution of Compensation Systems Take Off Program April 2012
  11. 11. Evolution in Compensation Systems  Salary scales to broad bands  Salary increases based on seniority to merit- based increases  Pay for performance - incentive April 2012Take Off Program
  12. 12. http://icsc.un.org
  13. 13. WORLD BANK GROUP NET SALARY STRUCTURE Effective May 1, 1996 Grade Minimum Midpoint Maximum 29 146,520 161,190 175,860 28 127,950 143,920 159,890 27 115,280 129,670 144,060 26 96,190 117,880 139,570 25 84,190 105,240 126,290 24 72,360 93,970 115,580 23 64,600 83,890 103,180 22 59,920 74,900 89,680 21 53,510 66,890 80,270 20 47,780 59,720 71,660 19 42,650 53,310 63,970 18 38,090 47,610 57,130 17 32,730 42,500 52,270 16 29,210 37,930 46,650 15 26,100 33,900 41,700 14 23,290 30,250 37,210 13 20,790 27,000 33,210 12 19,290 24,110 28,930 11 17,220 21,530 25,840
  14. 14. 2000 Salary Scale Canada Effective from January 1, 2000 Annual Salaries in CAD Grade Minimum Midpoint Maximum 1 21,800 25,640 30,770 2 24,880 29,260 35,120 3 28,380 33,380 40,060 4 32,400 38,110 45,740 5 36,980 43,500 52,200 6 43,160 50,770 60,930 7 54,560 64,180 77,020 8 63,720 74,960 89,960 9 70,050 87,560 109,450 10 81,810 102,260 127,830 11 95,560 119,440 149,300 12 111,610 139,510 174,390 13 130,360 162,950 203,690
  15. 15. IATA Salary Bands A Support Staff Entry to Advance B Support supervisors Highly Skilled Tech support C Managers Specialists – Level 1 D Assistant Directors Specialists – Level 2 E Directors F ExCom Members
  16. 16. IATA Compensation Strategy Take Off Program April 2012
  17. 17. Drivers: IATA Compensation Strategy Based on Merit/Performance Geared to Market conditions Favors Lower-paid Employees
  18. 18. Applying the Compensation Strategy Based on Merit/Performance Rating on Performance Assessment Geared to Market conditions Classification of Country Category Favors Lower-paid Employees Position on Salary Band
  19. 19. IATA offices in 60 Countries  Category A – high inflation/currency devaluation  Category B – salary structure not in line with local market  Category C – salary structure adequate  Category D – salary structure adequate, legal/contractual cost of living adjustments April 2012Take Off Program
  20. 20. 2012 “A” countries  Across-the-board increase  Effective 1 Jan 2012  Based on a combination: Actual inflation rate from IMF Forecast inflation rate from IMF Forecast market salary increases from specialist international compensation consulting firm April 2012Take Off Program
  21. 21. Applying the Compensation Strategy Based on Merit/Performance Rating on Performance Assessment Geared to Market conditions Classification of Country Category Favours Lower-paid Employees Position on Salary Band
  22. 22. 22 Performance-based salary increases  Line supervisors will be able to grant salary increases within the following ranges and pre-determined budget at regional and divisional level: Country Category A B+ B C A 3%-9% 0%-6% 0%-4% 0% B 3%-9% 0%-6% 0%-4% 0% C 3%-9% 0%-6% 0%-4% 0% D 1%-7% 0%-4% 0%-3% 0% Performance Appraisal Rating
  23. 23. 23 Extraordinary Performance Bonuses Recognizing individuals with unique contributions 5% to 10% of annual base salary within pre-determined budget Applicable only for individuals not covered by other programs Sales Incentive program for field sales Variable Compensation program for Country Managers
  24. 24. Other Bonus Programs Variable Compensation Program Directors Country Managers Sales Incentive Plan Sales Team April 2012Take Off Program
  25. 25. 25  For promotions  Confirmed throughout the year  Salary changes will be effective at date of promotion  For other adjustments (such as rebanding of positions, salary realignments)  Confirmed once per year (1 April)  Salary changes will be effective on that date Promotions and adjustments
  26. 26. Employee Recognition Programs  Individual and team awards for special achievement  Four levels  Platinum  Gold  Silver  Bronze  More information and nomination forms on Intranet April 2012Take Off Program
  27. 27. Rewards Take Off Program April 2012

×