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Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
Total reward; what's it all about? March 2011
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Total reward; what's it all about? March 2011

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Half day interactive open workshop in Toronto for organizations interested in the improvement or implementation of total rewards.

Half day interactive open workshop in Toronto for organizations interested in the improvement or implementation of total rewards.

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  • 1. Total reward; what’s it all about?<br />by Toronto Training and HR <br />March 2011<br />
  • 2. Contents<br /> 3-4 Introduction to Toronto Training and HR<br /> 5-8 Definitions<br /> 9-10 Possible outcomes<br /> 11-12 Critical success factors<br />13-14 Typical content &amp; examples<br /> 15-16 Drill A<br /> 17-18 Components of total reward strategy<br />19-24 Implementing total reward strategies<br /> 25-26 Drivers of engagement in Canada<br />27-28 Avoiding pitfalls<br /> 29-30 Benefits communication<br />31-32 Recognition and reward appetites<br />33-35 Designing a recognition plan<br />36-37 Drill B<br />38-43 The future of total reward<br />44 -46 Dos and Don’ts<br />47-48 Case study A<br />49-50 Case study B<br />51-52 Conclusion and questions<br />Page 2<br />
  • 3. Page 3<br />Introduction<br />
  • 4. Page 4<br />Introduction to Toronto Training and HR<br />Toronto Training and HRis a specialist training and human resources consultancy headed by Timothy Holden <br />10 years in banking<br />10 years in training and human resources<br />Freelance practitioner since 2006<br />The core services provided by Toronto Training and HR are:<br /><ul><li>Training course design
  • 5. Training course delivery</li></ul>- Reducing costs<br /><ul><li>Saving time
  • 6. Improving employee engagement &amp; morale
  • 7. Services for job seekers</li></li></ul><li>Page 5<br />Definitions<br />
  • 8. Page 6<br />Definitions 1 of 3<br />Compensation<br />Benefits<br />Personal growth<br />
  • 9. Page 7<br />Definitions 2 of 3<br />TOTAL REWARDS STRATEGY<br />Mission/values/philosophy<br />Reward plan value drivers<br />
  • 10. Page 8<br />Definitions 3 of 3<br />TOTAL REWARD STATEMENTS<br />Why do organizations issue them?<br />In what situations?<br />
  • 11. Page 9<br />Possible outcomes<br />
  • 12. Page 10<br />Possible outcomes<br />Global total reward statements<br />Benefits<br />Wider communications strategy<br />Examples of ROI<br />Typical implementation process<br />
  • 13. Page 11<br />Critical success factors<br />
  • 14. Page 12<br />Critical success factors<br />Data quality<br />Valuation methodologies<br />
  • 15. Page 13<br />Typical content &amp; examples<br />
  • 16. Page 14<br />Typical content &amp; examples<br />Covering letter<br />Personal details<br />Summary charts and/or tables<br />Fuller breakdown and description of benefits<br />Other non-tangible benefits<br />Voluntary benefits<br />
  • 17. Page 15<br />Drill A<br />
  • 18. Page 16<br />Drill A <br />
  • 19. Page 17<br />Components of total reward strategy<br />
  • 20. Page 18<br />Components of total reward strategy<br />Base salary<br />Short-term incentives<br />Medium-term incentives<br />Long-term incentives<br />Wealth accumulation<br />Executive benefits<br />Executive perks <br />
  • 21. Page 19<br />Implementing total rewards strategies<br />
  • 22. Page 20<br />Implementing total rewards strategies 1 of 5<br />AT THE BEGINNING<br />Naming the project leader<br />Selecting additional members<br />Clarifying team members’ roles<br />
  • 23. Page 21<br />Implementing total rewards strategies 2 of 5<br />ASSESSMENT<br />Conducting focus groups<br />Using industry benchmark surveys<br />Examining current policies<br />Surveying employee attitudes towards reward<br />Reviewing the literature<br />Writing the assessment report<br />
  • 24. Page 22<br />Implementing total rewards strategies 3 of 5<br />DESIGN<br />Compensation<br />Costs of secrecy<br />Benefits of secrecy<br />Satisfying employees with pay<br />Benefits<br />Personal and professional development<br />Work environment<br />Synergies through total rewards design<br />
  • 25. Page 23<br />Implementing total rewards strategies 4 of 5<br />EXECUTION<br />Eligibility<br />Top management support<br />Measurement<br />Project management<br />Checklist <br />
  • 26. Page 24<br />Implementing total rewards strategies 5 of 5<br />EVALUATIONMeasuring the outcomes<br />Outcomes and data sources<br />Interpreting the findings<br />Checklist <br />
  • 27. Page 25<br />Drivers of engagement in Canada<br />
  • 28. Page 26<br />Drivers of engagement in Canada<br />Senior management interest in employee well-being<br />Challenging work<br />Overall work environment<br />Input in decision-making<br />Career advancement opportunities<br />Resources to get the job done<br />Senior management ensuring long-term success<br />Reputation of the company<br />Teamwork<br />Manager helps me understand contribution to firm’s financial success<br />
  • 29. Page 27<br />Avoiding pitfalls<br />
  • 30. Page 28<br />Avoiding pitfalls<br />The profitless profit-sharing plan<br />The missing appraisal system<br />The no-go goal sharing plan<br />
  • 31. Page 29<br />Benefits communication<br />
  • 32. Page 30<br />Benefits communication<br />Highlight the facts so it is clear that the contents of the communication are only a summary<br />Indicate which documents govern the plan and that they will prevail in the event of any inconsistency<br />Ensure the communication is not contrary to the plan and is an accurate summary of the information presented<br />Limit communications to only that information which is necessary to allow them to make a decision for themselves<br />While not required, it is prudent to state that the<br />terms of the communication are not intended to form a contractual relationship<br />
  • 33. Page 31<br />Recognition and reward appetites<br />
  • 34. Page 32<br />Recognition and reward appetites<br />Traditionalists 61+<br />Boomers 45-60<br />Generation X 25-44<br />Generation Y 14-25<br />
  • 35. Page 33<br />Designing a recognition plan<br />
  • 36. Page 34<br />Designing a recognition plan 1 of 2<br />Establish program objectives, measurements and a budget<br />Select the best recognition alternatives—formal/informal, immediate/long-term, public/<br />non-public, individual/team<br />Determine legal requirements and tax liability<br />Integrate recognition into the total rewards program<br />Prepare the action plan<br />
  • 37. Page 35<br />Designing a recognition plan 2 of 2<br />Educate managers and train plan leaders<br />Communicate heavily throughout implementation and regularly thereafter<br />Consistently evaluate effectiveness through employee surveys and other feedback mechanisms<br />
  • 38. Page 36<br />Drill B<br />
  • 39. Page 37<br />Drill B <br />
  • 40. Page 38<br />The future of total reward<br />
  • 41. Page 39<br />The future of total reward 1 of 5<br />Base salary<br />Short-term incentives<br />Medium-term incentives<br />Long-term incentives<br />Wealth accumulation<br />Executive benefits<br />Executive perks <br />
  • 42. Page 40<br />The future of total reward 2 of 5<br />Technology will foster innovation and play a larger role in business &amp; work processes. Markets will change. Increased focus on outsourcing, web enabled, flexible work place &amp; time.<br />Traditional career paths will be at risk – part time, multiple employers, workforce will plan their professional development across companies &amp; industries at their pace.<br />Loyalty = High performance for the assignment. <br />The future organization will need a competitive advantage in acquiring, managing and deploying talent resources-possibly fewer “employees”. <br />
  • 43. Page 41<br />The future of total reward 3 of 5<br />REWARD STRUCTURE<br />The concept of pay ranges, mechanical reward administration will change to reward driven by value added and economic return.<br />Remuneration “structures” will be at risk. <br />Individuals who provide a competitive advantage will see increased reward differentiation – however governance on assessment processes will also be tighter and subject to scrutiny.<br />Move to the “one number” with individualized allocation. <br />
  • 44. Page 42<br />The future of total reward 4 of 5<br />VARIABLE PAY &amp; LONG-TERM INCENTIVES<br />Economic recession &amp; stricter governance driving tighter plans with validated longer term business returns, hold back, moderate fixed variable ratios.<br />Change in career path view driving “pay me now” instant gratification and greater differentiation based on contribution.<br />Equity based compensation with long vesting falling out of favour.<br />
  • 45. Page 43<br />The future of total reward 5 of 5<br />THE NEW REWARD MIX OR ECOSYSTEM<br />Differentiator in total rewards will no longer be compensation &amp; benefits.<br />The entire ecosystem ( culture/ systems/ structure/ strategy/ employer brand ) of the organization<br />Performance Management, recognition &amp; development opportunities<br />Flexibility <br />Total Rewards may soon be = Total Employee Value Proposition <br />
  • 46. Page 44<br />Dos and Don’ts<br />
  • 47. Page 45<br />Dos and don’ts 1 of 2<br />DO<br />Ensure accurate, available data<br />Value benefits using a fair, robust methodology, capable of explanation to employees<br />Have a clear, branded design<br />Personalize as far as possible<br />Include non-tangible benefits<br />
  • 48. Page 46<br />Dos and don’ts 2 of 2<br />DON’T<br />Cut corners<br />Oversell benefits<br />Just publish numbers<br />Fiddle with contents<br />
  • 49. Page 47<br />Case study A<br />
  • 50. Page 48<br />Case study A <br />
  • 51. Page 49<br />Case study B<br />
  • 52. Page 50<br />Case study B <br />
  • 53. Page 51<br />Conclusion &amp; Questions<br />
  • 54. Page 52<br />Conclusion<br />Summary<br />Questions<br />

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