• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Compensation Workshop
 

Compensation Workshop

on

  • 1,276 views

NHRD-Comp& BEN workshop

NHRD-Comp& BEN workshop

Statistics

Views

Total Views
1,276
Views on SlideShare
1,258
Embed Views
18

Actions

Likes
3
Downloads
0
Comments
0

2 Embeds 18

http://www.linkedin.com 16
https://www.linkedin.com 2

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Compensation Workshop Compensation Workshop Presentation Transcript

    • - Ms. Deepa Mohamed
    •  Compensation: Meaning  Total Compensation <Total Rewards>  How Total Rewards Motivate & RetainSESSION 1 Employees  Employment Relationship Matrix & Person- fit  Various “Generations/Gender/Age specific’ Total Rewards  Internal Labor Market: O-P-T Model  How to develop Pay Model  Linking Business with StrategySESSION 2  Communicating & Management of Total Rewards - Implementing the Rewards effectively Ms. Deepa Mohamed
    • Ms. Deepa Mohamed
    • Overall annualized attrition average is 18.6% across all sectors Key Reasons for Attrition: •Career Advancement •Personal Reasons (Family) •Compensation Ms. Deepa Mohamed
    • Ms. Deepa Mohamed
    • Levels of UncertaintyMs. Deepa Mohamed
    •  Compensation: Meaning  Total CompensationSESSION 1 <Total Rewards>  How Total Rewards Motivate & Retain Employees  Employment Relationship Matrix  Various “generations, gender, age specific’ Total Rewards  Internal Labor Market: O-P-T Model  How to develop Pay Model  Linking Business with StrategySESSION 2  Communicating & Management of Total Rewards - Implementing the Rewards effectively Ms. Deepa Mohamed
    • Total Returns Total Relational Compensation Returns Learning Opportunities Challenging Recognition Work & Status Employment Cash Benefits Security CompensationBase Allowances Long –Term Incentives Income Work/Life Protection Focus Merit/Cost Short –Term of Living Incentives Ms. Deepa Mohamed
    •  Compensation: Meaning  Total Compensation <Total Rewards> How Total RewardsSESSION 1 Motivate & Retain Employees - EVP  Employment Relationship Matrix  Various “generations specific’ Total Rewards  Internal Labor Market: O-P-T Model  How to develop Pay Model  Linking Business with StrategySESSION 2  Communicating & Management of Total Rewards - Implementing the Rewards effectively Ms. Deepa Mohamed
    • EMPLOYEE VALUE PROPOSITIONAn Exercise…
    •  I would request all of you to please think about your present organization. Just visualize your “remuneration” – only the CASH component ( Base+ HRA + PLI/LTI/STI) Now – Benefits … (Allowances, Work/Life focus, Income Protection e.g. Pension, medical insurance) Now please mentally tick various ‘Relational Returns (Recognition & Status/ Challenging Work) Ms. Deepa Mohamed
    • •Base Cash •Retention Bonus •Pef Linked Incentive (PLI) •Allowances (Hard area) •Retirement & Saving •PF, Gratuity, Super Annuation •Medical Insurance Benefits •Life Insurance (Work-life focus) •Leave Encashment •Pension Plans •Work-life Focus •Paid time-off •Safety •Paid Leaves •Work variety •Work Status/ Work importance •Social Recognition - Rewards •Work Empowerment •Learning &devt (Trg/lateral Relational movements) •Work Place Culture Rewards: •Autonomy •Feedback •Work load •Work Conditions •Job SecurityMs. Deepa Mohamed •International Mobility
    • So how many of you get maximum ‘ YES’ Congrats!!!you are the fortunate ones, “Please Stick to that company” Ms. Deepa Mohamed
    •  Let’s think of an organization as a network of returns created by all these different forms of pay. MOTIVATING POTENTIAL SCORE = Skill variety + Task Identity + Task Significance x Autonomy x Feedback (MPS) Ms. Deepa Mohamed 3
    • Compensation Wages, commissions and bonuses Incentive plans, Performance appraisals Tie- up with various Health institutions, gyms, freeBenefits Vacations, Health Insurance health check-ups. - Employee wellness, Health Check ups.Social Interaction Friendly workplace Work culture Stable, consistent positions andSecurity rewardsStatus/recognition Respect, prominence due to work Succession planning Opportunity to experienceWork variety Job Rotation different things Right amount of work (not tooWorkload much/ not too little)Work Importance Is work valued by societyAuthority/control/auto Ability to influence others; controlnomy own destinyAdvancement Chance to lead Mentoring & Coaching Receive information helping toFeedback Performance Counseling and feedback improve performanceWork Conditions Hazard free Health and safety policies at work Formal and informal training toDevelopment Learning and Development such as various trainings learn new knowledgeopportunity as per TNA of employees, CGP (career growth path) skills/abilities Ms. Deepa Mohamed
    • from the cost perspective, motivation andretention perspective
    • Organizations MUST: Create a strong ‘BRAND’ … Have a good REWARD SYSTEM in place … You get what you Reward !!! Reward system have a significant impact onCommit to ‘People First Value’ - Walk the Talk employees’ perception of organisation, supportClearly Communicate organizations mission and and leadership and have a strong influence onvision. employee trust in workplace.Guarantee Organisational Justice – GrievanceHandling, two – way communication TOTAL REWARDSCreate a sense of community – Like defenseservices build value based homogeneity i.e.“Camaraderie”.Support Employee Development - Commit toactualization, provide challenging jobs, enrich & Money Recognition Benefitsempower, promote from within, promote Rewardsdevelopmental & learning measures, provide ‘EAP’– Employee assistance programs i.e. on-site child -Salary -Social Recognition &care, pension plans, medical and life insurance -Skill Pay formal Rewards -Bonus -Increased responsibility -Incentives & Accountability Employees have to be at least moderately satisfied with their pay – close to their ‘market value’, 80% to 85% of it, otherwise employees will leave. Making it a nice place to work: Workstations/workplaces who are allowed to control their own climate are at least 3% more productive than those who are not. “No cookie-cutter workplace template” but yes a well designed workplace is a “big hygiene factor”.
    • GOING BEYOND EVP (Employee Value Proposition) Employer – Employee Equation “The Value Exchange” Beyond the EVP – the EVE…  “The Balance between the Rewards Employers offers & The Expectations they set in exchange for these Rewards” Ms. Deepa Mohamed
    • Expectations Rewards • Performance • Affiliation • 3 C’s of Teamwork • Compensation (Coordination, Collaboration, Communication) • Benefits • Engagement • Career • Behavior • Work Content • Retention And According creating an effective EVE(Reducing Inequity between their expectations & the Rewards) Ms. Deepa Mohamed
    • High Culture of Culture of High Churn-over PerformanceExpectations Culture of Medium Mediocrity Culture of Culture of Disengagement Entitlement Low Low Medium High Ms. Deepa Mohamed Rewards
    • Via their TRANSACTIONAL COMPONENTS & RELATIONAL COMPONENTS“Poor or good Pay MeritocracyMaster’ Organisation Organisational Organisational Work•‘Leading or lagging’ as •Performance Based Culture Vision Environment per Industry Standards - variable structure to ‘differentiate high performers’ Organisation’s Learning & Hygiene Development Factors Opportunities Ms. Deepa Mohamed
    •  Compensation: Meaning  Total Compensation <Total Rewards>  How Total Rewards Motivate & Retain EmployeesSESSION 1 Employment Relationship Matrix  Various “generations specific’ Total Rewards  Internal Labor Market: O-P-T Model  How to develop Pay Model  Linking Business with StrategySESSION 2  Communicating & Management of Total Rewards - Implementing the Rewards effectively Ms. Deepa Mohamed
    •  How do we get good candidates to join us?  How do we retain them?  How do we get them to develop skills for current and future jobs?  How do we get them to perform well?  What is important to a person to get desired behavior as an ‘Employer”The compensation challenge is to design rewards that enhanceproductivity & Job Performance.For this we need to apply all understandings of various motivationaltheories as well as gender and age specific requirements.
    • HIGH HIGH PAY HIGH PAY LOW HIGH COMMITMENT COMMITMENTTRANSACTIONAL Hired Guns Cultlike Stock Brokers Google, Microsoft LOW PAY LOW LOW PAY HIGH LOW COMMITMENT COMMITMENT Workers as Commodity Family Insurance Firms Startups, Armed Forces LOW HIGH RELATIONAL
    • Prediction about Performance Based Theory Essential Features So What – HR Perspective Pay - Lower order needs: Food, Shelter - Higher order needs: Self esteem,Maslow’s Need - Base pay should be high so as to meet - Performance based pay may be de- Self actualization Hierarchy basic needs motivating if basic needs are not met - If needs not met, becomes frustrating - Basic pay must be set high to meet - Basic Needs: hygiene needs, but can’t motivateHerzberg’s two 1. Hygiene factors (Basic living needs, - Min. Pay level important performance factor theory security) - Balance of stressor enablers - Hygiene factors influence the efficacy of 2. Satisfiers (Recognition, promotion) performance based pay - Larger incentives better than - Focus on exchange b/w employee & smaller ones - Job tasks & roles to be clearly defined Expectancy employer (Motivation: Expectancy, - Clear LOS (Line of Sight) Instrumentality & Valence) - Training expectations to perform at target levels - Performance measures must be - Increased Performance to be matched by Perceived O/P (e.g. pay) equals clearly defined Commensurate pay hike Equity perceived inputs (e.g. effort, work - Payouts doesn’t match expectations, - Adequacy of pay evaluated basis behavior) negative reactions from employees comparison with peers - Fairness payout is important - Performance based pay to follow closely - Rewards, Reinforce (sustains behind performanceReinforcement performance) - Timing of payout is critical - Withholding payouts: A way to - Rewards must follow after behaviors discourage unwanted behaviors - Performance targets to be clearly - Performance based pay must be in sync - Challenging performance goals: defined in terms of specific difficult Goal Setting with goal difficulty Greater intensity in performance goals - Should be paid on imp. Goals - Feedback is crucial - Pay should be aligned with - Performance based pay more suited achievement of org. objectives - Performance based pay to be tightly for complex jobs where work - Employees prefer static wages linked with org. objectives Agency monitoring is difficult (salary) to Performance based pay - Performance based pay can be used to - Performance targets should be tied - Payments to be based upon direct & induce employee performance to org. goals successful completion of duties Besides Money, other rewards influence behavior!! That is, Total Rewards
    •  Materialistic  More focus on Pay level Low Self Esteem  Want large, de centralized organization with little pay for performance. Risk Takers  Want more pay based on performance. Risk Averser  Want less performance based pay. Individualistic  Want pay plans based on Individual Performance, not team performance.  Employees don’t begin to notice incentive payouts unless they are atleast 10%.  With 15% - 20% more likely to evoke desired response.  Every dollar spent on any Performance based pay plan yields $2.34 more in organizational earnings.  10% increase in bonus paid to employees yields 1.5% increase in ROA( return on asset) to the first.
    •  Compensation: Meaning  Total Compensation <Total Rewards>  How Total Rewards Motivate & Retain Employees  Employment Relationship MatrixSESSION 1  Various “generations, gender, age specific’ Total Rewards  Internal Labor Market: O-P-T Model  How to develop Pay Model  Linking Business with StrategySESSION 2  Communicating & Management of Total Rewards - Implementing the Rewards effectively Ms. Deepa Mohamed
    • Yes, Of course… Now we have realized what motivates employees, let’s see“How various Generations are affected by this?”
    • •Highly paid workers may wish to defer taxes by OLDER GENERATION putting their pay into retirement funds (PF, Pension Plans) •May prefer child care, flexi work, co-location DUAL CAREER COUPLE EMPLOYEES WITH YOUNGER •May desire ‘Dependent care’ coverage CHILDREN OR DEPENDENT (mediclaim),childcare .flexi work, less mobility PARENTS •May have high cash needs to buy a house, support YOUNDER GENERATION a family, or pay back an education loan. HR Strategies customized for Diversity handling › Age Group – being most critical to Gender inclusiveness › (Whether Acquisition, Engaging/ Retaining – to Development Initiatives) › Focus on ‘Gen Y’ will be more Mentoring Ms. Deepa Mohamed
    • Ms. Deepa Mohamed
    • Ms. Deepa Mohamed
    • Ms. Deepa Mohamed
    • So are you ready to Design a PAY MODEL?? Ms. Deepa Mohamed
    • Got a letter just this morning, it was postmarked Omaha, It was typed and neatly written offering me a better job,P Better job and higher wages, expenses paid, and a car. But I’m on TV here locally, and I cant quit, I’m a star.O I come on TV a grinnin’, wearin’ pistols and a hat,E It’s a kiddie show and Im the hero of the younger set. Im the number one attraction in every supermarket parking lot.M Im the king of Kansas City. No thanks, Omaha, thanks a lot. Kansas City Star, that’s what I are… Ms. Deepa Mohamed
    •  Compensation – Milkovich & Newman www.worldatwork.com Deloitte Touche Tohmatsu India Pvt Ltd. Survey Mercer Survey 2011 Towers Watson Academy of HRD Aon Hewitt Talent Management Handbook – Lance A. Berger & Dorothy A Berger Ms. Deepa Mohamed
    • •Internal Labor Market: O-P-T Model•How to develop Pay Model <Exercise A>•Linking Business with Strategy <Exercise B>•Flow to develop Sales Incentive Plan <Exercise C>•Communicating & Management of Total Rewards -Implementing the Rewards effectively Ms. Deepa Mohamed
    •  Compensation: Meaning  Total Compensation <Total Rewards>  How Total Rewards Motivate & RetainSESSION 1 Employees  Employment Relationship Matrix  Various “generations, gender, age specific’ Total Rewards Internal Labor Market: O-P-T ModelSESSION 2  How to develop Pay Model  Linking Business with Strategy  Communicating & Management of Total Rewards - Implementing the Rewards effectively Ms. Deepa Mohamed
    •  Are we really able to attract desired candidates? Are we able to retain them? Do our employees Perceive it as fair? Do they see clear Line of Sight between expectations, performance & Rewards? Ms. Deepa Mohamed
    • Whether pay is leading catalyst for change or a follower of change - CompensationManager must learn how to implement and manage change.“Not only we must know the Strategic and technical aspect of compensation, they also must know how to:  Bargain; Resolve disputes; Empower employees 35% understood the link between their Job Performance and pay they receive • Watson Wyatt Survey (13,000 employees) (Source: Watson Wyatt news release, September 9,2002) “Pay plans are not well understood by the employees” only 1/3rd employees revealed that they understood how pay ranges are determined and how pay increase are calculated • WorldatWork Survey (6,000 employees) (Source: WorldatWork Journal 11(4) (Fourth Quarter 2002) Ms. Deepa Mohamed
    •  Competitive Dynamics:-Culture/Values-Social & Political Content-Employee/Union Needs-Other HR Systems-What factors in the business environment are important today?- Changing customer needs- Reducing volumes & Margins- Increase in labor wages- Changing Regulations (SEBI,IRDA). Ms. Deepa Mohamed
    • POLICIES TECHNIQUE OBJECTIVESAlignment Work Analysis Description Evaluation/ INTERNAL Efficiency Certification STRUCTURE •Performance •Quality •Customers &Competitiveness Market Surveys Policy PAY Stockholders Definitions Lines STRUCTURE •CostsContributions Seniority Performance Merit INCENTIVE Fairness/ Based Based Guidelines PROGRAMS EquityManagement Costs Communication Change EVALUATION Compliance Ms. Deepa Mohamed
    • 1) The Compensation Objectives2) Foundation Polices (Policies Decisions)3) The techniques that make up the Compensation System Ms. Deepa Mohamed
    • POLICIESOBJECTIVE Internal Alignment TECHNIQUES Efficiency External Competitiveness Job profiling Fairness Employee Contribution Salary bench-markingCompliance Management PMS Labor CostsDeepa Mohamed * no. of employees Ms. = Pay Level
    • • Performance enhancement,Efficiency delighting customers, improving quality, controlling labor cost. • Should be the fundamental objective of any pay system.Fairness Procedural Fairness (How Pay decision is made)Fair Treatment by recognizing employee contributions. • Laws, minimum wages,Compliance equal remuneration act, statutory compliances. Ms. Deepa Mohamed
    • Internal Alignment :• Comparison among jobs or skill levels inside a single organization, in terms of their relative contributions to the organizations business objectives.External Competitiveness• Refers to the pay relationship among organizations – the organization’s pay relative to its competitors.• Pay Level – (Base+Bonus+Benefits+Options/ Average of the arrays of rates paid by an employer)/ Number of employees.• Pay Form : Pay Mix External Competitiveness is expressed by: Setting a Pay level that is above, below or equal to that of the competitors• Determining the mix of Pay forms(Pay Mix) relative to those of competitors.• Labor Costs = Pay Level * no. of employees Ms. Deepa Mohamed
    • External CompetitivenessLabor Market Factors•Nature of Demand•Nature of SupplyProduct Market Factors•Degree of Competition EXTERNAL•Level of Product Demand COMPETITIVENESSOrganization Factors•Industry, Strategy, Size•Individual Manager Ms. Deepa Mohamed
    • External Competitiveness Theory Prediction HR ActionCompensating Differentials •Work with negative JD’s & Compensation characteristics . structure must capture •Require higher pay to attract these negative Workers. characteristics. •Eg. – Work at remote area Efficiency Wage Above market wage will •Best Screening at improve efficiency by recruitment stage to get attracting workers who will good candidates perform better and be less •Effective PMS willing to leave. Signaling •Pay Policies Signal the kind of Pay Practices must (Lead, Lag, Equal) behavior the employer seeks. recognize desired(Both Pay level & Pay mix •Eg. High Individual Incentives. behaviors with clear Line send signals) Shows: Individuals of Sight. (Higher Bonus or Higher performance is highly valued. Base Pay) Ms. Deepa Mohamed
    • External CompetitivenessPERFORMANCE DRIVEN MARKET MATCH Benefit Benefits Options s 17% 4% 20% Options Base 16% 50% Bonus Base 6% 70% Bonus 17% SECURITY WORK LIFE BALANCE Benefits 20% Benefits 30% Base 50% BaseOptions 80% 10% Bonus 10% Ms. Deepa Mohamed
    • External Competitiveness Industry Employer Size“Talented Individuals have a higher marginal value in a larger organization because they can influence more people and decisions, there by leading to more profits.” Organization Strategy Ms. Deepa Mohamed
    • Employee Contribution How much emphasis should there be on Paying for Performance? Should the company share any profits with employees? With all or few? Ms. Deepa Mohamed
    • Management“Understanding & communicating how the compensation structure works & doing so in ethical & fair ways.” Ensuringthat the Right People get the Right Pay for achieving objectives in the Right Way”. Ms. Deepa Mohamed
    • Binding factor for Objectives & Policies Internal alignment : through job analysis, work evaluation. External Competitiveness : Competitors’ benchmarking, pay level & pay mix Employee Contributions : performance based/ seniority based/ increased bonus/ incentives, PLI/LTI etc. Management : Performance Measurement, implementation & Communication. Ms. Deepa Mohamed
    •  Compensation: Meaning  Total Compensation <Total Rewards>  How Total Rewards Motivate & RetainSESSION 1 Employees  Employment Relationship Matrix  Various “generations, gender, age specific’ Total Rewards  Internal Labor Market: O-P-T Model How to develop Pay ModelSESSION 2  Linking Business with Strategy  Communicating & Management of Total Rewards - Implementing the Rewards effectively Ms. Deepa Mohamed
    • Column1 IT Organization Y Telecom Z Startup OBJECTIVES INTERNAL ALIGNMENT EXTERNALLY COMPETITIVE EMPLOYEECONTRIBUTIONMANAGEMENT TECHNIQUES Ms. Deepa Mohamed
    • Column1 IT Organization Y Telecom Z Startup Highly Meritocracy Develop leaders at every level. Demonstrate respect for Individual talent& Innovation Driven Re-in force team based culture limitless potential of highly motivated team. Business Driven Reduce Costs Passion for new ideas, Increase Productivity willingness to take risks OBJECTIVES Reward fresh ideas, hard work & a commitment to excellence. Strong internal culture Well defined responsibilities & Matching with high expectations Performance driven culture competencies based structure. Fair pay differences as per output. INTERNAL Business/technology L&D Opportunities. ALIGNMENT Based on design Structure Lead Factor Competitive & highly Comparable Just “Matches” or Lag EXTERNALLY Bonuses Between 50th & 75th Percentile. COMPETITIVE Lead & Stock Awards Bonus & Stock Awards based on Support high performance leadership Individual Incentive Schemes EMPLOYEE Performance (Merit Based). culture. Stock/ ESOP’s for encouraging ownership.CONTRIBUTION Team based increase Tailor to business & team results. Open & transparent Performance & leadership feedback Goal & Output focused Communication. Neutral Implementer Result DrivenMANAGEMENT Software supported. Entrepreneurial Control Self Managed Strong PMS Strong L&D LOS TECHNIQUES Competencies Mapping Reinforcement
    •  Compensation: Meaning  Total Compensation <Total Rewards>  How Total Rewards Motivate & RetainSESSION 1 Employees  Employment Relationship Matrix  Various “generations, gender, age specific’ Total Rewards  Internal Labor Market: O-P-T Model  How to develop Pay Model Linking Business withSESSION 2 Strategy  Communicating & Management of Total Rewards - Implementing the Rewards effectively Ms. Deepa Mohamed
    • Ms. Deepa Mohamed
    • Mission –Why We Strategic Strategy Outcomes Exist Map : Translate Satisfied the ShareholdersVision – Strategy StrategyWhat We Our DelightedWant to Game Customers Be Plan Excellent Balanced Processes Values – Scorecard : Measure Motivated What’s and Focus WorkforceImportant to Us Ms. Deepa Mohamed
    • Ms. Deepa Mohamed
    • Business HR Program Compensation Strategy PMS Response Alignment Systems Innovator:Increase Product Complexity and Shorten Product Life Cycle. E.g. Samsung & NokiaCost Cutter: Focus on Efficiency CustomerFocused: Increase Customer Expectations Ms. Deepa Mohamed
    • Business HR Program Compensation Strategy PMS Response Alignment Systems *Product Leadership Committed to Agile, Risk – * Reward innovation in Innovation & Learning Innovator: * Shift to Mass Taking ,Innovative People Products and Processes. perspective - HighIncrease Product Customization * Market – Based Pay weightage Complexity and * Cycle Time * Flexible – Generic Job Shorten Product Description Life Cycle. * Encouraging Innovation - E.g. Samsung & Innovation & Learning Nokia Perspective *Operational *Do More with Less - *Focus on Competitors Labor Internal Process Excellence Optimum Utilization of Cost perspective - High *Pursue Cost – Resources *Increase Variable Pay weightageCost Cutter: Focus Effective Solutions. *Manpower planning will Emphasize on Efficiency *CRM, ERP Solution - be very crucial *Internal Process Perspective - For effective Tracking & Focus on System Control & Control Work Specifications. *Deliver Solutions to *Delight Customers, *Customer Satisfaction Customer perspective - Customers Exceed Expectations. Incentives High weightage Customer *Speed to Market *Value of Job & Skill Based onFocused: Increase Customer Contact. Customer *Customer Perspectives Expectations measurement - Crucial in Performance Measurement Ms. Deepa Mohamed
    •  High Initiative takers who can work under low supervision for extended period of time, that is why having Incentive on Individual Performance motivates them to perform even unsupervised. Motivational Factors:  Money: 78% (that is, Direct financial rewards)  Appreciation & Recognition – 2nd Rank Performance Measurement relates to Compensation Strategy Ms. Deepa Mohamed
    • INDUSTRY TYPE : SERVICE• Client • Multiple Pay • Well defined Acquisition levels JDs, KRAs & and • Hierarchical KPIs Retention structure • Competitor• Increase in • Lead Bench Market share • Performance marking• Increase in based • Incentive Revenue • PMS- plans Automated • Balance Score Card Ms. Deepa Mohamed
    •  Compensation: Meaning  Total Compensation <Total Rewards>  How Total Rewards Motivate & RetainSESSION 1 Employees  Employment Relationship Matrix  Various “generations, gender, age specific’ Total Rewards  Internal Labor Market: O-P-T Model  How to develop Pay Model  Linking Business with Strategy  Communicating &SESSION 2 Management of Total Rewards - Implementing the Rewards effectively Ms. Deepa Mohamed
    • Managing the Message …
    • THE COMPENSATION COMMUNICATION CYCLE Was the What are program successfu the l? goals? DESIGNING & How should EFFECTIVE What isFORMULATING the the IMPLEMENTATION sessions be OF REWARDS implement current ed? situation? What What is “tools” the best are most overall appropri approac LEADS ate? h? TO Reduce Turnover Facilitate Career progression Facilitate Performance Reduce pay-related grievances Increase experienced workforce Undertaking of Trainings Ms. Deepa Mohamed
    • Criteria Equity InsuranceGoals • Net Revenue • Premium Net of default • Less Compliance Issues • More Renewal percentage • Increase in Client base • Less Policy defaultCurrent • Market down • Increase awareness about InsuranceMarket/Industry • Lots of players; strengthening their • 40% revenue through renewalSituation position • Strict IRDA ruling on mis-selling • Strict Regulatory guidelinesBest Overall Compensation Structure Compensation Structureapproach Compensation Structure based on Compensation Structure based on KRA’s Point KRA’s Point system system • No. of De-mat accounts • Premium amount Net of default • Net Revenue • Renewal Revenue % • % compliance issues < 1% PMS Linkage • Both compensation and PMS; aligned to achieve desired goals as per present Market situation.Tools (most Performance Management Systems (PMS)appropriate) Evaluation based on Quantitative set goals/targets. PMS Balance Scorecard includes parameters such as Financial/Customer/Internal Processes and Innovation & Learning. Employee made aware of his/her KRAs/KRIs at the time of joining i.e. Induction & On- Boarding.Session PMS sessions on Intranet (HRIS)implementedSuccess of the PMS Evaluation: Compensation/increment on the basis of PMS Scores Counselingprogram (HOD meeting and counseling the staff/employees)
    • We all undermine the “Reward Value” of Good Reputation- A DreamCompany- ‘Company which actually falls as the best place to work’ and which is perceived as a ‘ Brand’ thereby Employees become ‘Brand Ambassadors’ So now what’s in it for us ‘HR Fraternity’- designing this ‘TOTAL REWARD’ effectively and ‘manage the message.’Because Total Rewards gives you EVP- i.e. “Employee Branding”So let’s focus on all the aspects instead of only cash component. We all tend to undervalue the Reward Value of a Good Reputation- so include Intangibles Ms. Deepa Mohamed
    • WORK & LIFE BENEFIT• policies and programs “on-site child care”• Paid LeavesPENSION PLANS• Life PF/ESI (Employer initially may be the facilitator)• In future private companies will soon incorporate pension schemes in CTC Component as a ‘Retention Tool’ .MEDICAL & LIFE INSURANCE• Provision of Mediclaim and Insurance schemes as a part of company policies for employee benefit. Ms. Deepa Mohamed
    • Ms. Deepa Mohamed
    • CONTACT DETAILS: Email id : djmohamed@smcindiaonline.com SMC Group of CompaniesThe data presented in the document is the intellectual property of aforesigned. Any rights including, inter alia, rights of reproduction, communication to the public, adaptation and translation of the work should be done after prior permission from the Author. All rights reserved