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Reward June 2013


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Half day open training event on reward held in Toronto.

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Reward June 2013

  1. 1. Topical reward issues for the secondhalf of 2013by Toronto Training and HRJune 2013
  2. 2. CONTENTS5-6 Definitions7-8 Philosophy of reward management9-11 Total reward12-13 Conducting a compensation impact analysis14-15 The model of effort-reward imbalance16-17 Drill A18-21 Why have a reward strategy?22-26 Developing a reward strategy27-28 Drill B29-30 Job evaluation31-36 Recognition37-38 Applying a reward and recognition program39-40 The four Ps of reward41-48 Trends in 201349-50 Conclusion and questionsPage 2
  3. 3. Page 3Introduction
  4. 4. Page 4Introduction to Toronto Trainingand HRToronto Training and HR is a specialist training andhuman resources consultancy headed by Timothy Holden10 years in banking10 years in training and human resourcesFreelance practitioner since 2006The core services provided by Toronto Training and HRare:Training event designTraining event deliveryReducing costs, saving time plus improvingemployee engagement and moraleServices for job seekers
  5. 5. Page 5Definitions
  6. 6. Definitions• Intrinsic rewards• Types of intrinsic rewards• Extrinsic rewards• Types of extrinsic reward• Reward management• RecognitionPage 6
  7. 7. Page 7Philosophy of rewardmanagement
  8. 8. Philosophy of reward management• Strategic sense• Total reward• Differential reward accordingto the contribution• Fairness, equity, consistencyand transparencyPage 8
  9. 9. Page 9Total reward
  10. 10. Total reward 1 of 2• Definition• Pay• Benefits• Learning & development• Work environment• Armstrong & Brown modelPage 10
  11. 11. Total reward 2 of 2Page 11TotalrewardReturn oninvestmentChangemanagementEngagementAlignment
  12. 12. Page 12Conducting acompensation impactanalysis
  13. 13. Conducting a compensation impactanalysis• Determine the objectives• Identify the market• Gather tools• Share findings up and downPage 13
  14. 14. Page 14The model of effort-reward imbalance
  15. 15. The model of effort-rewardimbalance• Transmitter systems• Imbalance is maintained undercertain conditions• The imbalance between higheffort and low rewardincreases the risk of reducedhealth• Overcommitted people are atincreased risk of reducedhealthPage 15
  16. 16. Page 16Drill A
  17. 17. Drill APage 17
  18. 18. Page 18Why have a rewardstrategy?
  19. 19. Why have a reward strategy? 1 of 3• Can play a central role inshaping reward policies andpractices when aligned to theorganization‟s culture, valuesand objectives• Communicate and reinforcewhat the organization wants toand wants not to reward• Drive change on pay, benefitsand wider reward so that it isalignedPage 19
  20. 20. Why have a reward strategy? 2 of 3WHY DO THEY NOT DELIVER?• Focus on best practice• Focus on design at expense ofshareholders and implementation• Focus on „what‟ outcomes candrive unwanted behaviours• Changes not aligned to theorganization‟s culture and values• No clear means of measuring orevaluating successPage 20
  21. 21. Why have a reward strategy? 3 of 3WHY DO THEY NOT DELIVER?• Skills and abilities of linemanagers in implementation• Perceived as a HR initiative andnot driven by top leadership• Insufficient two-waycommunications• Attitudes of employees, linemanagers and the top teamPage 21
  22. 22. Page 22Developing a rewardstrategy
  23. 23. Developing a reward strategy 1 of 4• Organizational strategy• HR strategy• Reward strategyPage 23
  24. 24. Developing a reward strategy 2 of 4• STRUCTURE AND CONTENT OF AREWARD STRATEGY• Environmental analysis; macroand micro• Gap analysis• A broad-brush approach• Specific initiativesPage 24
  25. 25. Developing a reward strategy 3 of 4• MAJOR STRATEGIC REWARDDECISIONS• What to pay employees• How to pay individual employees• What benefits to offer• How to construct recognitionprogramsPage 25
  26. 26. Developing a reward strategy 4 of 4• Phase One-diagnosis andspecification• Phase Two-design andstakeholder input• Phase Three-test and validate inpreparing for implementation• Phase Four-implement,communicate and evaluatePage 26
  27. 27. Page 27Drill B
  28. 28. Drill BPage 28
  29. 29. Page 29Job evaluation
  30. 30. Job evaluation• A systematic process• Relative or absolute• Analytical or non-analytical• Market pricingPage 30
  31. 31. Page 31Recognition
  32. 32. Recognition 1 of 5• Types of recognition• Why does it matter today?• Sustaining a culture ofrecognition• The business case• Anticipated benefits• Program effectiveness• Measurable impactPage 32
  33. 33. Recognition 2 of 5PROGRAMS• Adoption• Type• Standardization• Age• Delivery• Design and reality• ActivitiesPage 33
  34. 34. Recognition 3 of 5PROGRAMS (CONTINUED)• Ensure the program deliversvalue to its employees• Resolve the tension betweenmanageability andmeasurability• Evolve recognition so that itbecomes a part of the culturePage 34
  35. 35. Recognition 4 of 5RECENT RESEARCH• It‟s there but not enoughpeople know about it• HR fails to effectively enablerecognition• Highly effective programsresult in lower turnover• Many employees state they arerecognized annually or not atall• Whilst many employees craverecognition specificity and easethese are not priorities for HR
  36. 36. Recognition 5 of 5RECENT RESEARCH (CONTINUED)• Senior leaders are not asimportant to recognition as HRthinks• Programs help create arecognition culture• Failure to customize externalprograms or integrate softwarecomes at a price• Programs need to be refreshedfrequentlyPage 36
  37. 37. Page 37Applying a reward andrecognition program
  38. 38. Applying a reward and recognitionprogram• Create an award program for peerrecognition of a job well done or forgoing above and beyond in theirwork• Produce a monthly or quarterlynewsletter• Plan an annual firm-wide retreat• Host employee outings• Recognize your employee‟s familyincluding children and petsPage 38
  39. 39. Page 39The four Ps of reward
  40. 40. The four Ps of reward• Pay• Praise• Promotion• PunishmentPage 40
  41. 41. Page 7Trends in 2013
  42. 42. Trends in 2013 1 of 7NON TRADITIONAL REWARDPROGRAMS• Faster ramp-up cycles inkeeping events relevant• Use of hybrid and virtualformats• Decision making pushed up thechange of command• “Above and beyond”behaviours• Acknowledge performers whoare adaptable, collaborativeand innovative
  43. 43. Trends in 2013 2 of 7BUDGETARY PESSIMISM• Global economic difficulties• “Discount fever”• Changes in vacation choices• Cutting back on gifts butincreased usage of gift cards• Are gift cards right for yourorganization?Page 43
  44. 44. Trends in 2013 3 of 7TECHNOLOGY• Faster broadband speeds• Cost-effective apps• Mobile access• Tablet applications• Social mediaPage 44
  45. 45. Trends in 2013 4 of 7GAMIFICATION• Incentives• Virtual currencies• Learning & developmentPage 45
  46. 46. Trends in 2013 5 of 7NON-CASH REWARDS• Meaningful and challengingwork• Trustworthy and transparentperformance managementprocess• Praise• RecognitionPage 46
  47. 47. Trends in 2013 6 of 7WELLNESS• Exercise• Sleep• Diet• Alcohol and tobacco• Mental healthPage 47
  48. 48. Trends in 2013 7 of 7CSR• Ethics and morals• Sustainability• “Green”• Climate change and carbonfootprintPage 48
  49. 49. Page 49Conclusion and questions
  50. 50. Page 50Conclusion and questionsSummaryVideosQuestions