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Reward presentation  University of Cape Town – 29 September 2008 Kobus du Plessis Area Reward Manager British American Tob...
the bigger picture Business Strategy Employee Benefits & Non-financial Rewards Market  surveys Job  Evaluation/ Job Profil...
agenda <ul><li>reward foundation </li></ul><ul><ul><li>job profiling and evaluation  </li></ul></ul><ul><li>market & pay <...
job evaluation OUTPUT PROCESS INPUT Job evaluation measures the OUTPUT, PROCESS and INPUT requirements of  the JOB and NOT...
job evaluation Top Management Senior  Management Professionally qualified  specialists and middle management Skilled worke...
example - BATSA A B C Y N Q.2 Q.3 Y N Q.7 Q.6 Q.5 Q.4 Y N B A N Y N 1 2 3 5 6 7 Q.1 4 The JE Manager system uses  standard...
example - BATSA Job evaluation result  produced by JE Manager…
example - BATSA Employee / Manager JE Facilitator JE Audit Committee Notification Job evaluation request & actual evaluati...
agenda <ul><li>reward foundation </li></ul><ul><ul><li>job profiling and evaluation  </li></ul></ul><ul><li>market & pay <...
What do we need from salary surveys and how does this relate to job grades…. JE Manager Salary  Surveys By Survey  Company...
Defining the lower quartile, median, upper quartile and 90 th  percentile… Highest salary Lowest Salary Rank order of ALL ...
<ul><li>Intelligence Report 2007 </li></ul>example - BATSA
pay levels & relatives <ul><li>Market position </li></ul><ul><li>Which market – national, regional, sector, etc. </li></ul...
pay levels & relatives <ul><li>Pay scale principles </li></ul><ul><ul><li>Number of grades </li></ul></ul><ul><ul><li>Numb...
pay levels & relatives <ul><li>A successful pay structure…….. </li></ul><ul><ul><li>reflects the company’s business strate...
BATSA example Job Grade X 90 th percentile Median 75 th Percentile Market Company Selected Pay range Market anchor +40% -1...
variable pay <ul><li>Best Practice: Most Successful Incentives </li></ul><ul><li>Cascade/Aligned with important business g...
variable pay …alternative design options  Primary Corporate Objectives Net turnover target Profit target Sales volume targ...
variable pay….s hare participation schemes % of Salary Converted to Share Allocation Share allocation transferred to indiv...
example – market trends
example - BATSA <ul><li>Inclusiveness: </li></ul><ul><ul><li>“ Include everyone. ” </li></ul></ul><ul><li>Reward team resu...
example - BATSA Company Charter Functional Charter Individual Performance Contract  5 Bonusable  Objectives Line of Sight ...
example - BATSA 25% 25% 25% 25% Incentive Payment Year-to-date Cash Flow Sales Volume Profit Net Turnover Threshold Target...
agenda <ul><li>reward foundation </li></ul><ul><ul><li>job profiling and evaluation  </li></ul></ul><ul><li>market & pay <...
employee benefits <ul><li>In deciding which benefits to offer, it is very important to understand the difference between t...
employee benefits Traditional Design Salary * # + Benefits = Total (fixed) Package * + Incentives = Total Cost of Employme...
Benefit selection and design Model design for medical benefits… Company  pays Employee pays Full or significant portion  o...
non-monetary benefits <ul><li>Proposed recognition channels within recognition mandate </li></ul><ul><ul><li>Simple “thank...
BATSA example Regionally Sponsored Development Opportunity (i.e. international conference on area of interest) Area Sponso...
pay for performance – BATSA example Individual BAT SA Skills with market value Performance Competitive Comparatio 100 Mark...
pay for performance Target performance distributions per performance rating…. Exceed Succeed Nearly there & Inadequate <10...
Battlefield bonuses… <ul><li>When should they be used… </li></ul><ul><ul><li>Where performance of an individual/team goes ...
reward governance and communication <ul><li>Decision maker: </li></ul><ul><li>Board Compensation Committee (BCC) </li></ul...
reward governance and communication <ul><li>Advantages and disadvantages of communication alternatives: </li></ul><ul><li>...
BATSA example General reward communication on standard policies, procedures and practices. Ideally issue resolution 50% to...
BATSA example 2-3 x per annum All new employees Induction Ad hoc All employees Information sessions 6 x per annum HR Commu...
Road show – “Meet & greet”
Road show – “Meet & greet”
Road show – “It’s my life Movie 1 ”
Road show – “It’s my life Movie 1 ”
 
Road show – “Board game 2”
Favourable Scores Pay and Benefits Information and Communication Structure Learning Alignment Culture Corporate Responsibi...
Category Scores Ranked By Difference From  Benchmark Favourable Scores Pay and Benefits Enterprising Spirit Information an...
agenda <ul><li>reward foundation </li></ul><ul><ul><li>job profiling and evaluation  </li></ul></ul><ul><li>market & pay <...
total reward BATSA example H I G H  P E R F O R M A N C E B E H A V I O U R EMPLOYEE REWARDS PROPOSITION M O N E T A R Y T...
BATSA example – reward architecture Salary Incentives Battle Field Bonus Benefits Non-monetary recognition Reward Channels...
questions ?????????
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Reward presentation University of Cape Town – 29 September 2008

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  • Job evaluation and job grades, salary surveys, upper quartile salaries and market anchors are all very important concepts that one has to understand in order to fully comprehend BAT SA’s approach to remuneration as well the annual salary review process used by BAT SA. Let us start with the often misunderstood concepts of job evaluation and job grades. In essence, job evaluation is the process by which the responsibility and complexity level of a particular job is measured. Job evaluation is widely used by organisations, including ourselves, to group jobs with similar levels of responsibility and complexity into what is generally known as job grades. A job grade is therefore nothing more than a label for a group of jobs which are of similar size in terms of responsibility and complexity. Similarly, a job evaluation system is nothing more than a tool through which the responsibility and complexity level of a particular job can be measured and classified into a recognised job grade. It is important to note that job evaluation measures the complexities and responsibilities of a job as detailed in the job description and not the abilities or performance of the individual doing the job. Without job grades it would not be possible to accurately compare the salaries and benefits of jobs with similar responsibilities and complexities across many organisations. BAT SA uses the JE Manager job evaluation system which is one of the recognised and widely used job evaluation systems in the country. There are also other recognised job evaluations systems like Hay, Peromnes, and Paterson. Widely accepted correlation tables do however exist for all these job evaluation systems to enable easy comparison of jobs across organisations using different job evaluation systems. BAT SA, like many other South African organisations, use the services of organisations that specialise in the collection, analysis and reporting of market salary and benefit levels. These are generally referred to as salary survey organisations. These salary survey organisations collect the salary and benefit details for different jobs in our company as well as many other organisations. Using job grades to group together jobs with similar levels of responsibility and complexity, a remuneration survey report is produced for each participating organisation. Amongst other details, these remuneration survey reports contain lower quartile , median , upper quartile and 90 th percentile labour market salary and total package values per job grade which we will now explore in more detail.
  • These lower quartile, median, upper quartile and 90 th percentile values per job grade are basically calculated by ranking, for each of the job grades, all salaries from all participating organisations from highest to lowest. The important value from a BAT SA perspective is the upper quartile market salary value, per BAT SA job grade, published by the salary survey organisation used by BAT SA as the primary resource for its labour market information. In essence, this upper quartile market salary value is the market salary at a particular job grade that would exceed the salaries of 75% of jobs at the same job grade in the South African economy. The total cash market anchors per job grade used by BAT SA, are derived directly from these upper quartile market salary values. In essence, the BAT SA market anchors are upper quartile labour market reference values for use by BAT SA line managers in determining fair total cash remuneration levels for employees reporting to them. The detail of how this is done is explored later in this overview. In comparison to the upper quartile market salary value, the lower quartile market salary value is the market salary at a particular job grade that would exceed the salaries of 25% of jobs at the same job grade in the South African economy. Similarly, the median market salary value is the market salary at a particular job grade that would exceed the salaries of 50% of jobs at the same job grade in the South African economy. Lastly, the 90 th percentile is the market salary at a particular job grade that would exceed the salaries of 90% of jobs at the same job grade in the South African economy.
  • This slide reflects the five MoSs that make up the incentive bonus and our year-end estimates for 2004 . The percentage values on the right reflect the weightings assigned to each. The weightings are used to determine the importance of the MoS to the incentive bonus scheme. The bigger the weighting, the more impact the MoS will have on determining our bonus for this year and more importantly ensuring the sustainability of the business. Going forward, we have set ourselves more stretching targets. As explained during the No.1 Roadshow earlier this year, BAT in London will assess our performance against a three point scale: Stretch (Dark Green) – objectives surpassed by a wide margin Target (yellow) – objectives achieved Minimum (red) – objectives not quite achieved Please note: Inadequate, as a measurement is no longer an option. From 2005, our performance will only be tracked from RED, YELLOW and GREEN. Green is stretch and that is what we should aim for each year. Just Target is also not an option for BAT South Africa. Share and profit weightings are unchanged, however supply chain has decreased by 5 points and cash flow has increased 5 point to ensure we meet our targets. colour coding used on the charts is based on our monthly performance against year to date targets which are not necessarily the same for every month So what does the chart illustrate: Share, Profit, Cash flow are on target for year-end estimates. Supply Chain is on Stretch which is an excellent achievement. Productivity is also on target moving towards stretch which is encouraging. However we need to work harder at improving all of our scores in the coming months if we want to achieve Stretch at the end of the year. Lets look at Market share in more detail……
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  • Transcript of "Reward presentation University of Cape Town – 29 September 2008"

    1. 1. Reward presentation University of Cape Town – 29 September 2008 Kobus du Plessis Area Reward Manager British American Tobacco
    2. 2. the bigger picture Business Strategy Employee Benefits & Non-financial Rewards Market surveys Job Evaluation/ Job Profiling Performance Management & Employee Development/Structure Pay levels & relatives Pay structures Total remuneration Performance pay Reward Strategy Improved performance Foundation Market and pay Organisational processes
    3. 3. agenda <ul><li>reward foundation </li></ul><ul><ul><li>job profiling and evaluation </li></ul></ul><ul><li>market & pay </li></ul><ul><ul><li>market surveys </li></ul></ul><ul><ul><li>pay levels </li></ul></ul><ul><ul><li>variable pay </li></ul></ul><ul><li>organisational processes </li></ul><ul><ul><li>employee benefits </li></ul></ul><ul><ul><li>non-monetary benefits </li></ul></ul><ul><ul><li>performance management & employee development </li></ul></ul><ul><ul><li>pay for performance </li></ul></ul>Total Reward
    4. 4. job evaluation OUTPUT PROCESS INPUT Job evaluation measures the OUTPUT, PROCESS and INPUT requirements of the JOB and NOT the performance of the individual in the job relative to these job requirements
    5. 5. job evaluation Top Management Senior Management Professionally qualified specialists and middle management Skilled workers and junior management Clerical, equipment operating, junior supervisory staff Staff with narrow range of basic skills Hay JE Manager Paterson F E D C B A 1801+ 735 - 1800 371- 734 192 - 370 0 - 24 25 - 74 75 - 124 125 - 174 175 - 224 225 - 275 85 - 191 Up to 84
    6. 6. example - BATSA A B C Y N Q.2 Q.3 Y N Q.7 Q.6 Q.5 Q.4 Y N B A N Y N 1 2 3 5 6 7 Q.1 4 The JE Manager system uses standardised questions and decision trees to arrive at JE Manager points <ul><li>Example: </li></ul><ul><li>Acquisition and Application of Theoretical Knowledge </li></ul><ul><ul><ul><li>X - Minimum level of knowledge required </li></ul></ul></ul>
    7. 7. example - BATSA Job evaluation result produced by JE Manager…
    8. 8. example - BATSA Employee / Manager JE Facilitator JE Audit Committee Notification Job evaluation request & actual evaluation Job evaluation results reviewed Job evaluation results approved The job evaluation process in BAT SA…
    9. 9. agenda <ul><li>reward foundation </li></ul><ul><ul><li>job profiling and evaluation </li></ul></ul><ul><li>market & pay </li></ul><ul><ul><li>market surveys </li></ul></ul><ul><ul><li>pay levels </li></ul></ul><ul><ul><li>variable pay </li></ul></ul><ul><li>organisational processes </li></ul><ul><ul><li>employee benefits </li></ul></ul><ul><ul><li>non-monetary benefits </li></ul></ul><ul><ul><li>performance management & employee development </li></ul></ul><ul><ul><li>pay for performance </li></ul></ul>Total Reward
    10. 10. What do we need from salary surveys and how does this relate to job grades…. JE Manager Salary Surveys By Survey Company <ul><li>We need: </li></ul><ul><li>Lower quartile </li></ul><ul><li>Median </li></ul><ul><li>Upper quartile </li></ul><ul><li>90 th percentile </li></ul><ul><li>details per job grade </li></ul>salary surveys Job Grade 34 Job Grade 33 Job Grade 32 Job Grade 31 Job Grade 30 More complex job Less complex job
    11. 11. Defining the lower quartile, median, upper quartile and 90 th percentile… Highest salary Lowest Salary Rank order of ALL salaries of ALL companies at a particular job grade Lower Quartile 25% of salaries exceeded Median 50% of salaries exceeded Upper Quartile 75% of salaries exceeded 90 th Percentile 90% of salaries exceeded salary surveys
    12. 12. <ul><li>Intelligence Report 2007 </li></ul>example - BATSA
    13. 13. pay levels & relatives <ul><li>Market position </li></ul><ul><li>Which market – national, regional, sector, etc. </li></ul><ul><li>Date of data </li></ul>
    14. 14. pay levels & relatives <ul><li>Pay scale principles </li></ul><ul><ul><li>Number of grades </li></ul></ul><ul><ul><li>Number of different pay scales </li></ul></ul><ul><ul><li>Pay ranges, pay slope and pay overlap </li></ul></ul>Different norms in different countries
    15. 15. pay levels & relatives <ul><li>A successful pay structure…….. </li></ul><ul><ul><li>reflects the company’s business strategy and culture </li></ul></ul><ul><ul><li>reflects the culture and pay practices of the country </li></ul></ul><ul><ul><li>rewards adequately for higher levels of job responsibilities, skills or competencies </li></ul></ul><ul><ul><li>reflects the target market </li></ul></ul><ul><ul><li>is affordable </li></ul></ul><ul><ul><li>adheres to sound design principles </li></ul></ul><ul><ul><li>provides a structure to reward performance </li></ul></ul>
    16. 16. BATSA example Job Grade X 90 th percentile Median 75 th Percentile Market Company Selected Pay range Market anchor +40% -10% Comparatios 100 140 90 High skills High performance On standard skills and performance Low skills Low performance
    17. 17. variable pay <ul><li>Best Practice: Most Successful Incentives </li></ul><ul><li>Cascade/Aligned with important business goals to clarify how value is created </li></ul><ul><li>Measure what counts not what can easily be measured </li></ul><ul><li>Goal setting: Top-Down - Participants involved in ‘How To?’ </li></ul><ul><li>Results, not activity accomplishment </li></ul><ul><li>As measurement improves, performance focus shifts to more individual and less team, group, organisation-wide </li></ul><ul><li>Organisation: Did we get value? (ROI) </li></ul><ul><li>Participants: Were awards consistent with what I/we contributed? </li></ul><ul><li>REGULAR COMMUNICATION </li></ul>
    18. 18. variable pay …alternative design options Primary Corporate Objectives Net turnover target Profit target Sales volume target Cash flow target Supportive Business unit Objectives Business Unit Incentive Table Corporate Incentive Table Supportive Individual Performance Objectives Individual Incentive Table C + BU + Ind. C + BU CORP 20% - - 30% 30% - 50% 70% 100%
    19. 19. variable pay….s hare participation schemes % of Salary Converted to Share Allocation Share allocation transferred to individual following a vesting period Typically limited to senior executive teams and senior professional staff: Retention ability of scheme results from fact that employee would be leaving a monetary entitlement behind should he/she resign… 40% 20% 10% 0% Override Target Stretch Target Budget Target Threshold Target
    20. 20. example – market trends
    21. 21. example - BATSA <ul><li>Inclusiveness: </li></ul><ul><ul><li>“ Include everyone. ” </li></ul></ul><ul><li>Reward team results as opposed to individual results: </li></ul><ul><ul><li>“ In the emerging world of work, business success is increasingly determined by team effort rather than individual effort” </li></ul></ul><ul><li>Line of sight: </li></ul><ul><ul><li>“ Ensure that employees see a link between what is required of them and the incentive payments.” </li></ul></ul><ul><li>Simplicity: </li></ul><ul><ul><li>“ Keep it simple.” </li></ul></ul><ul><li>Incentives must become part of the daily business agenda: </li></ul><ul><ul><li>“ Incentive targets and achievements against these targets must be common knowledge for employees and a source of daily inspiration for behaviour” </li></ul></ul>
    22. 22. example - BATSA Company Charter Functional Charter Individual Performance Contract 5 Bonusable Objectives Line of Sight Objectives Functional Line of Sight Objectives Individual Performance Objectives Individual Performance Rating Individual Salary Company Score Card & Ratings Functional Score Card Annual Incentive Payments Ensure employees see link between what is required of them and incentive pay
    23. 23. example - BATSA 25% 25% 25% 25% Incentive Payment Year-to-date Cash Flow Sales Volume Profit Net Turnover Threshold Target Stretch Override 30%
    24. 24. agenda <ul><li>reward foundation </li></ul><ul><ul><li>job profiling and evaluation </li></ul></ul><ul><li>market & pay </li></ul><ul><ul><li>market surveys </li></ul></ul><ul><ul><li>pay levels </li></ul></ul><ul><ul><li>variable pay </li></ul></ul><ul><li>organisational processes </li></ul><ul><ul><li>employee benefits </li></ul></ul><ul><ul><li>non-monetary benefits </li></ul></ul><ul><ul><li>performance management & employee development </li></ul></ul><ul><ul><li>pay for performance </li></ul></ul>Total Reward
    25. 25. employee benefits <ul><li>In deciding which benefits to offer, it is very important to understand the difference between the following two mayor benefit classes: </li></ul><ul><li>Core Benefits: </li></ul><ul><ul><li>These are benefits where participation is a condition of employment for all employees . A core benefit is therefore compulsory for all employees and the core benefit offering by the company is largely determined by: </li></ul></ul><ul><ul><ul><li>The company’s social responsibility view. </li></ul></ul></ul><ul><ul><ul><li>The social security benefits available from the state. </li></ul></ul></ul><ul><li>Non-Core benefits: </li></ul><ul><ul><li>These are the balance of the benefits a company elects to offers to all staff or certain categories of staff. </li></ul></ul><ul><ul><li>The benefit selection offered is determined by the company’s need to be competitive on benefits relative to its key competitors for talent. </li></ul></ul><ul><ul><li>Where practical, the company would allow the employee to exchange a non-core benefit (partially or fully) for cash or another non-core benefit. </li></ul></ul>
    26. 26. employee benefits Traditional Design Salary * # + Benefits = Total (fixed) Package * + Incentives = Total Cost of Employment* * = Benchmark points to labour market # = Pensionable and incentive basis Modern Design Flexible Package # + Core Benefits = Total (fixed) Package * + Incentives = Total Cost of Employment* Salary Car benefit Medical benefit Contribution to retirement fund In-service life cover Disability cover Annual incentive scheme Benefit design trend
    27. 27. Benefit selection and design Model design for medical benefits… Company pays Employee pays Full or significant portion of premium No or insignificant portion of premium Single Medical Benefit Plan Fixed monthly amount as core benefit contribution, ($80) irrespective of plan chosen by employee and number of employee dependants Balance of premium required for chosen benefit plan: Gold ($120) Silver ($40) Bronze ($0) Choice of Medical Plans: Gold ($200) Silver ($120) Bronze ($80) Traditional Design Modern Design
    28. 28. non-monetary benefits <ul><li>Proposed recognition channels within recognition mandate </li></ul><ul><ul><li>Simple “thank you” cards that can be sent by anyone to anyone in the organisation </li></ul></ul><ul><ul><li>Small “thank you” gifts (e.g. book, music CD, flowers, etc.) with a capped maximum value – expenditure to be approved at management level </li></ul></ul><ul><ul><li>Achievement certificate / trophy presented at some form of awards ceremony. </li></ul></ul><ul><ul><li>Development opportunity – i.e. attendance of an innovation conference </li></ul></ul>
    29. 29. BATSA example Regionally Sponsored Development Opportunity (i.e. international conference on area of interest) Area Sponsored Development Opportunity (i.e. Above market BAT Conference on specific topic like innovation) OpCo Sponsored Development Opportunity (i.e. Local Conference in field of work) Development Opportunities (to teams incl project teams) Golden Leaf Awards Regional Director Awards Area Directors Awards GM / MD Awards Awards (to teams incl. project teams) Yes Token Gifts (to individuals) Yes Yes Thank You Cards (to individuals) Global Region Area OpCo / Clusters Manager to Employee Employee to Employee
    30. 30. pay for performance – BATSA example Individual BAT SA Skills with market value Performance Competitive Comparatio 100 Market Anchor 95 125 Succeed 110 140 Exceed 100 90 Inadequate 115 Reward for skills with high demand in market Market 90 th Percentile Market Upper Quartile 75 th Percentile Nearly There + Job evaluation (JE Manager) + Salary surveys Tools Performance management system (PerForm) Market Maximum 10% of employees in SA market Up to 15% of BAT SA employees in order
    31. 31. pay for performance Target performance distributions per performance rating…. Exceed Succeed Nearly there & Inadequate <10% 65% - 80% 15% - 25% The reality is that if more that 25 % of employees achieve exceed ratings, OUR STANDARDS ARE TOO LOW !
    32. 32. Battlefield bonuses… <ul><li>When should they be used… </li></ul><ul><ul><li>Where performance of an individual/team goes well beyond an ‘exceeds’ performance. </li></ul></ul><ul><ul><li>Where an individual/team has contributed to a significant activity or project which was not in the work plan. They have delivered successfully on this significant unplanned item as well as delivering their agreed work plan. </li></ul></ul><ul><ul><li>They have made a significant personal sacrifice to manage a workload well above that normally expected, usually in the situation where significant unplanned activity appears during the year. </li></ul></ul><ul><li>In other words, battlefield bonuses are there to recognise truly exceptional performance that goes significantly beyond the exceed benchmark </li></ul><ul><li>Quantum of Battlefield bonuses </li></ul><ul><ul><li>In most circumstances the payment of 1 month’s salary would be appropriate </li></ul></ul><ul><ul><li>In very exceptional cases the payment of up to 3 month’s salary can be made </li></ul></ul>
    33. 33. reward governance and communication <ul><li>Decision maker: </li></ul><ul><li>Board Compensation Committee (BCC) </li></ul><ul><li>Human Resources </li></ul><ul><li>Line Management </li></ul><ul><li>Employee </li></ul><ul><li>Decision mandate: </li></ul><ul><li>Remuneration strategy and policy decisions </li></ul><ul><li>Research remuneration best practices in market and: </li></ul><ul><ul><li>Motivate appropriate remuneration practices and levels for organisation to BCC </li></ul></ul><ul><ul><li>Train and guide line managers in application of approved remuneration practices. </li></ul></ul><ul><li>Application of approved remuneration practices within constraints of an approvals framework . </li></ul><ul><li>Make-up of his/her total remuneration package within the constraint of his/her own total remuneration package value. </li></ul>Issue: who should make which remuneration decision in the company…
    34. 34. reward governance and communication <ul><li>Advantages and disadvantages of communication alternatives: </li></ul><ul><li>Written communication </li></ul><ul><ul><li>+ Accessibility – can reach everyone with written communication. </li></ul></ul><ul><ul><li>+ Relatively cheap medium. </li></ul></ul><ul><ul><li>- Information in written communication can get outdated very quickly. </li></ul></ul><ul><ul><li>- When updated communication gets distributed, difficulty in recovering/disposing of outdated version. </li></ul></ul><ul><li>Electronic medium </li></ul><ul><ul><li>+ Information can easily be kept relevant and up to date at all times. </li></ul></ul><ul><ul><li>+ Easily facilitates add-on services – electronic payslips, decision support tools, etc. as well as e-mail question and answer facility for line managers and employees. </li></ul></ul><ul><ul><li>- Access to information can be more difficult - not everyone might have access to a computer and even if computers are available (through for example employee computer kiosks ), employees might still have difficulty in accessing information due to lack in basic computer skills. </li></ul></ul><ul><ul><li>- Technology investment costs to put these facilities in place, could be significant. </li></ul></ul><ul><li>R&B training: </li></ul><ul><ul><li>+ Caters for personal interaction which can greatly facilitate learning and understanding. </li></ul></ul><ul><ul><li>- Relatively expensive due to travelling. </li></ul></ul><ul><ul><li>- Increases “down-time” in company - Have to take line managers and employees out of their jobs for the duration of the training. </li></ul></ul><ul><li>No ideal medium - Going forward, the role of the electronic medium is likely increase and grow in prominence. </li></ul>
    35. 35. BATSA example General reward communication on standard policies, procedures and practices. Ideally issue resolution 50% to 60 % Line manager education and issue resolution up to 70% HR SC & BP - issue resolution 80% to 90% Reward CoE - issue resolution up to 100% Reward CoE to provide framework and content of interventions to ensure all stakeholders have access to appropriate information and support. This will include strategy, policies, procedures, appropriate guidelines and applicable training, education and information material.
    36. 36. BATSA example 2-3 x per annum All new employees Induction Ad hoc All employees Information sessions 6 x per annum HR Community “ Upskilling” sessions 2 x per annum HR Business partners 2 x per annum & Ad hoc Line managers Classroom training Quarterly All employees Company newsletter Ongoing All employees Company Intranet Frequency Target Audience Channel
    37. 37. Road show – “Meet & greet”
    38. 38. Road show – “Meet & greet”
    39. 39. Road show – “It’s my life Movie 1 ”
    40. 40. Road show – “It’s my life Movie 1 ”
    41. 42. Road show – “Board game 2”
    42. 43. Favourable Scores Pay and Benefits Information and Communication Structure Learning Alignment Culture Corporate Responsibility Team Working Survey Follow Up Enterprising Spirit Respect for our Employees Talent Freedom through Responsibility Open Minded Leadership Strength from Diversity Insufficient Items for Category Score Computation Supplementary items AME Insufficient Items for Category Score Computation Supplementary items South Africa Insufficient Items for Category Score Computation Coloured Difference Bars indicate a statistically significant difference Differences From Benchmark British American Tobacco Category Scores Ranked By Difference From Benchmark SOUTH AFRICA END MARKET (1603) vs. ISR SOUTH AFRICA NATIONAL NORM (38582) 50 75 63 66 85 77 76 71 61 54 60 50 58 50 61 4 0 0 -1 -3 -3 -3 -4 -4 -4 -5 -5 -6 -8 -10 -20 -10 0 10 20 0 25 50 75 100
    43. 44. Category Scores Ranked By Difference From Benchmark Favourable Scores Pay and Benefits Enterprising Spirit Information and Communication Alignment Culture Learning Corporate Responsibility Leadership Team Working Respect for our Employees Talent Structure Freedom through Responsibility Open Minded Strength from Diversity Insufficient Items for Category Score Computation Survey Follow Up Insufficient Items for Category Score Computation AME Supplementary Items Insufficient Items for Category Score Computation Coloured Difference Bars indicate a statistically significant difference Differences From Benchmark British American Tobacco SOUTH AFRICA 2007 (1343) vs. TP-ISR SOUTH AFRICA NATIONAL NORM (36274) 56 52 80 90 81 69 79 70 69 66 60 70 63 60 10 5 4 3 3 3 2 1 1 1 1 0 -1 -2 -20 -10 0 10 20 0 25 50 75 100
    44. 45. agenda <ul><li>reward foundation </li></ul><ul><ul><li>job profiling and evaluation </li></ul></ul><ul><li>market & pay </li></ul><ul><ul><li>market surveys </li></ul></ul><ul><ul><li>pay levels </li></ul></ul><ul><ul><li>variable pay </li></ul></ul><ul><li>organisational processes </li></ul><ul><ul><li>employee benefits </li></ul></ul><ul><ul><li>non-monetary benefits </li></ul></ul><ul><ul><li>performance management & employee development </li></ul></ul><ul><ul><li>pay for performance </li></ul></ul>Total Reward
    45. 46. total reward BATSA example H I G H P E R F O R M A N C E B E H A V I O U R EMPLOYEE REWARDS PROPOSITION M O N E T A R Y Transparent & Delivered Effectively Empowering & Flexible N O N M O N E T A R Y Training & Development Opportunities Open Minded Freedom Through Responsibility Enterprising Spirit Strength from Diversity Coaching & Mentoring Career Management People & Strategic Leadership GROWTH WINNING ORGANISATION PRODUCTIVITY Great Place to Work with Outstanding People Fair & Competitive Remuneration & Benefits Organization Culture Leadership & Development Opportunities RESPONSIBILITY
    46. 47. BATSA example – reward architecture Salary Incentives Battle Field Bonus Benefits Non-monetary recognition Reward Channels Rewarding Individual Performance Rewarding Group Performance Rewarding Organisational Membership & Individual Performance Rewarding Bahaviour Reward Channel Objectives Governance Enabler BCC Footprint - governs reward strategy & policy Control Environment - governs reward practice Benchmarking Enabler Survey Footprint Delivers market intelligence & facilitates reward insights Job Evaluation Enables internal & external reward comparisons Technology Enabler Facilitates flawless execution Engagement Enabler Communication Delivers internal feedback on reward & facilitates buy-in on reward strategy, policies & practices Training Builds reward capability where required
    47. 48. questions ?????????
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