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The Present & Future of Total Rewards – The Pay “Mix” Presentation by K S Kumar
The Present ….  Reward Structures <ul><li>Most common are the ones titled Flexible and rationalized </li></ul><ul><li>The ...
Structure of Reward <ul><li>ALL THESE IMPACT EMPLOYEE ENGAGEMENT AND HENCE BUSINESS PERFORMANCE & RESULTS </li></ul><ul><l...
So what’s the likely future ? <ul><li>Technology will foster innovation and  play a larger role in business & work process...
Reward Structure <ul><li>The concept of pay ranges, mechanical reward administration will change to reward driven by value...
Variable Pay & Long Term Incentives <ul><li>Conflicting directions : </li></ul><ul><ul><li>Economic recession & stricter g...
Retirals <ul><li>One fund that is portable and aggregated managed professionally with contributions any time, any amount w...
The “ecosystem” or the new Reward “Mix” <ul><li>Differentiator in total rewards will no longer be compensation & benefits ...
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Total Rewards

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Presentation on Total Rewards at the Total Rewards Conclave, Mumbai Feb 2011

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Total Rewards

  1. 1. The Present & Future of Total Rewards – The Pay “Mix” Presentation by K S Kumar
  2. 2. The Present …. Reward Structures <ul><li>Most common are the ones titled Flexible and rationalized </li></ul><ul><li>The traditional structures are found largely in manufacturing and old economy industries </li></ul><ul><li>The Evolved structure is not seen in India, barring a few very progressive and high paying organizations, as it is not very tax friendly </li></ul>
  3. 3. Structure of Reward <ul><li>ALL THESE IMPACT EMPLOYEE ENGAGEMENT AND HENCE BUSINESS PERFORMANCE & RESULTS </li></ul><ul><li>TOTAL REWARDS HAS TO BE IN THE CONTEXT OF THE BUSINESS STRATEGY & ENVIRONMENT AND MUST REFLECT THE ABILITY TO ATTRACT, RETAIN & MOTIVATE </li></ul>
  4. 4. So what’s the likely future ? <ul><li>Technology will foster innovation and play a larger role in business & work processes. Markets will change. Increased focus on outsourcing, web enabled, flexible work place & time </li></ul><ul><li>Traditional career paths will be at risk – part time, multiple employers, workforce will plan their professional development across companies & industries at their pace </li></ul><ul><li>Loyalty = High performance for the assignment ≠ tenure </li></ul><ul><li>The future organization will need a competitive advantage in acquiring, managing and deploying talent resources. May have fewer “employees” and more “ engaged talent” </li></ul>
  5. 5. Reward Structure <ul><li>The concept of pay ranges, mechanical reward administration will change to reward driven by value added and economic return. </li></ul><ul><li>Remuneration “structures” will be at risk </li></ul><ul><li>Individuals who provide a competitive advantage will see increased reward differentiation – however governance on assessment processes will also be tighter and subject to scrutiny </li></ul><ul><li>Move to the “one number” with individualized allocation </li></ul>
  6. 6. Variable Pay & Long Term Incentives <ul><li>Conflicting directions : </li></ul><ul><ul><li>Economic recession & stricter governance driving tighter plans with validated longer term business returns, hold back, moderate fixed variable ratios </li></ul></ul><ul><ul><li>Change in career path view driving “pay me now” instant gratification and greater differentiation based on contribution </li></ul></ul><ul><ul><li>Equity based compensation with long vesting falling out of favor </li></ul></ul><ul><ul><li>My View : Equity will continue to play a part but with much sharper differentiation and hence bigger individual grants </li></ul></ul><ul><ul><li> : More frequent bonuses tied to sustainable bottomline contribution </li></ul></ul>
  7. 7. Retirals <ul><li>One fund that is portable and aggregated managed professionally with contributions any time, any amount with regulatory oversight </li></ul>
  8. 8. The “ecosystem” or the new Reward “Mix” <ul><li>Differentiator in total rewards will no longer be compensation & benefits </li></ul><ul><li>The entire ecosystem ( culture/ systems/ structure/ strategy/ employer brand ) of the organization. </li></ul><ul><li>Performance Management, Recognition & Development Opportunities </li></ul><ul><li>Flexibility </li></ul><ul><li>Total Rewards may soon be = Total Employee Value Proposition </li></ul>
  9. 9. Thank You

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