Mod 7 designing a total reward plans

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  • Mod 7 designing a total reward plans

    1. 1. TOTAL REWARDS PLANS Adapting, Adopting or Re- design Module 7: Adapting, Adopting or Re-Design the total Reward Plan 1
    2. 2. AGENDA Purpose of the Presentation Alternative compensation Approaches Total Rewards Philosophy Review Compensation- Current State/Future State Building a Compensation Structure Future Trends and Future Plans Module 7: Adapting, Adopting or Re-Design the total2Reward Plan
    3. 3. ALTERNATIVE APPROACHES Developed a Total Rewards Philosophy Re-examined current situation  Reviewed recent market studies  Hired compensation consultant  Reviewed internal processes  Job evaluation methodology Defined our desired future state Determined what to focus on first Module 7: Adapting, Adopting or Re-Design the total3Reward Plan
    4. 4. PHILOSOPHY GOALS Reinforce the WSSC’s Mission, Vision, Core Strategies, and Core Values Increase accountability by offering more rewards to top performers Attract, hire and keep employees Better manage dollars to reward employees Module 7: Adapting, Adopting or Re-Design the total4Reward Plan
    5. 5. TOTAL REWARDSPHILOSOPHY Total Rewards include:  Pay or compensation  Benefits  Employee recognition  Career opportunities  Opportunity to work for an organization with an important mission Module 7: Adapting, Adopting or Re-Design the total5Reward Plan
    6. 6. TOTAL REWARDS PHILOSOPHYCompensation piece of the Total Rewards Philosophystates :  Performance based pay system  Compare salaries internally and externally  Target compensation positioning in the market Module 7: Adapting, Adopting or Re-Design the total6Reward Plan
    7. 7. WHY DO WE NEED TO DO THIS? To be competitive with the local area especially with jobs that are in high demand and low supply i.e. Engineers Allows us to hire and retain employees who will be replacing our retirees • Replacing approx. half of our workforce in the next 5-10 years New generation in the workforce concerned more with the salary than healthcare benefits & retirement plans World Class organizations use a market based system Module 7: Adapting, Adopting or Re-Design the total7Reward Plan
    8. 8. CURRENT STATE FUTURE STATE Structure is built from point factor  Structure is built from market data Hiring many new employees close  Retains and attracts employees to the max of the range  Allows flexibility in hiring “high  Does not allow flexibility in hiring demand/low supply” jobs “high demand/low supply” jobs  Strengthen our competitive position Promotional increases move  Provides flexibility in rewarding employees closer to the maximum performance of the pay grade Perception employees leave for higher pay  HR will track exit data  No documentation to support No pay cuts COLA will not go away Module 7: Adapting, Adopting or Re-Design the total8Reward Plan
    9. 9. GAP ANALYSIS: Between currentreward practices / strategy andindustry best practices Structure alternatives  Built from market data  Our market includes:  Industry average  Market Leader  Market Follower Focus groups  Conducted 15 focus groups- 150 employees  10% of the organization’s population Module 7: Adapting, Adopting or Re-Design the total9Reward Plan
    10. 10. CLOSING THE GAP: Re-design,Adapt or Adopt Review and update all of the job descriptions with the departments Market price all of the benchmark jobs Build structure from the benchmark jobs market data Slot the non-benchmark jobs into the structure Internal audit of job slotting Assess employees’ salaries against the new structure Propose new structure and implementation plan 10 Module 7: Adapting, Adopting or Re-Design the total Reward Plan
    11. 11. LEGAL and COST considerations Alignment with Talent Acquisition, Retention, Performance Management and Succession Management Updated job descriptions Financial impacts • Some employees will no longer be maxed out • Some employees may be red-circled • Market adjustments 11 Module 7: Adapting, Adopting or Re-Design the total Reward Plan
    12. 12. FUTURE TRENDS & FUTUREPLANS Move forward with next steps  Review job descriptions  Salary Survey  Best Practices  Variable compensation Periodic updates 12 Module 7: Adapting, Adopting or Re-Design the total Reward Plan

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