This document outlines an agenda for a training session on total rewards and compensation. The session will cover topics such as the meaning of compensation, how total rewards motivate employees, employment relationship matrices, developing internal pay models, linking compensation to business strategy, and communicating and managing total rewards effectively. Specific exercises are planned to help attendees develop a pay model, link compensation to strategy, and design a sales incentive plan. The session will also discuss how total rewards can be tailored to different generations, genders, and ages.
Presenting this set of slides with name - Compensation Management Powerpoint Presentation Slides. This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with thirty three slides is here to help you to strategize, plan, analyse, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Compensation Management Powerpoint Presentation Slides with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization.
This document discusses various types of discretionary benefits that employers may provide to employees. It begins by listing sample employee names and benefits amounts. It then covers three broad categories of discretionary benefits: protection programs, paid time off, and services. Within each category, it outlines specific benefit types such as short-term disability, various types of paid leave, employee assistance programs, wellness programs, tuition reimbursement, and more. It concludes by discussing the benefits and costs of offering discretionary benefits to employees.
The document discusses training and developing human resources. It covers topics such as career planning from both organizational and individual perspectives, developing needs analyses through tools like assessments and succession planning, and various development approaches organizations can take including on-the-job training, coaching, and management development methods. The goal of development is to improve employees' abilities to handle complex work through judgment, decision-making, and communication.
The document discusses pay-for-performance compensation systems and structures. It covers regulatory concerns around pay equity, objectives of compensation including attracting and retaining talent, total compensation including base pay and benefits, developing salary structures with competitive pay ranges tied to performance, and using market data to determine competitive pay positioning. The goal is to link individual performance and compensation through a structured system that complies with regulations and market practices.
Fringe benefits are extra benefits provided to employees in addition to normal compensation like wages or salary. They include things like health insurance, retirement benefits, paid time off, and recreational activities. Major IT companies in India like Infosys, Wipro, and IBM offer fringe benefits to attract and retain top talent. These benefits include health programs, food and transportation subsidies, stock purchase plans, childcare assistance, and extensive on-site amenities like gyms, pools, and entertainment facilities. Fringe benefits help improve employee welfare, motivation, and work-life balance.
Merit pay is an increase in pay based on goals or achievements set by an employer, rather than a union contract or defined pay scale. It is also known as pay for performance and typically involves supervisors meeting with employees to discuss work and award increases or bonuses based on performance. Merit pay programs most often occur in private for-profit organizations rather than public sector ones. Elements of an effective merit pay program include using both objective and subjective performance indicators to determine pay increases, ensuring employees know their efforts will lead to raises, having available funds to fulfill compensation promises, adjusting base pay for inflation before awarding raises, and effective performance appraisals.
This document contains 10 multiple choice questions about India's Employees Provident Fund and Miscellaneous Provisions Act, 1952. Key details include:
- The Act applies to establishments with 20 or more employees.
- Contribution amounts are calculated on basic salary only, not other allowances.
- Superannuation under the Act means attainment of 58 years of age.
- Casual employees are not considered "employees" under the Act.
- An employee does not need to submit a marriage certificate to take an advance against their PF for marriage.
This document discusses compensation management. It defines compensation management as providing both monetary and non-monetary rewards to employees in exchange for their work. It outlines the key components of compensation management, including direct monetary compensation like salary and bonuses, indirect compensation like insurance and retirement plans, and non-monetary compensation like recognition and satisfaction. The document also discusses strategies for compensation management, including paying employees based on their position, personal skills, or performance. It concludes by outlining the steps to develop an effective total compensation strategy.
Presenting this set of slides with name - Compensation Management Powerpoint Presentation Slides. This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with thirty three slides is here to help you to strategize, plan, analyse, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Compensation Management Powerpoint Presentation Slides with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization.
This document discusses various types of discretionary benefits that employers may provide to employees. It begins by listing sample employee names and benefits amounts. It then covers three broad categories of discretionary benefits: protection programs, paid time off, and services. Within each category, it outlines specific benefit types such as short-term disability, various types of paid leave, employee assistance programs, wellness programs, tuition reimbursement, and more. It concludes by discussing the benefits and costs of offering discretionary benefits to employees.
The document discusses training and developing human resources. It covers topics such as career planning from both organizational and individual perspectives, developing needs analyses through tools like assessments and succession planning, and various development approaches organizations can take including on-the-job training, coaching, and management development methods. The goal of development is to improve employees' abilities to handle complex work through judgment, decision-making, and communication.
The document discusses pay-for-performance compensation systems and structures. It covers regulatory concerns around pay equity, objectives of compensation including attracting and retaining talent, total compensation including base pay and benefits, developing salary structures with competitive pay ranges tied to performance, and using market data to determine competitive pay positioning. The goal is to link individual performance and compensation through a structured system that complies with regulations and market practices.
Fringe benefits are extra benefits provided to employees in addition to normal compensation like wages or salary. They include things like health insurance, retirement benefits, paid time off, and recreational activities. Major IT companies in India like Infosys, Wipro, and IBM offer fringe benefits to attract and retain top talent. These benefits include health programs, food and transportation subsidies, stock purchase plans, childcare assistance, and extensive on-site amenities like gyms, pools, and entertainment facilities. Fringe benefits help improve employee welfare, motivation, and work-life balance.
Merit pay is an increase in pay based on goals or achievements set by an employer, rather than a union contract or defined pay scale. It is also known as pay for performance and typically involves supervisors meeting with employees to discuss work and award increases or bonuses based on performance. Merit pay programs most often occur in private for-profit organizations rather than public sector ones. Elements of an effective merit pay program include using both objective and subjective performance indicators to determine pay increases, ensuring employees know their efforts will lead to raises, having available funds to fulfill compensation promises, adjusting base pay for inflation before awarding raises, and effective performance appraisals.
This document contains 10 multiple choice questions about India's Employees Provident Fund and Miscellaneous Provisions Act, 1952. Key details include:
- The Act applies to establishments with 20 or more employees.
- Contribution amounts are calculated on basic salary only, not other allowances.
- Superannuation under the Act means attainment of 58 years of age.
- Casual employees are not considered "employees" under the Act.
- An employee does not need to submit a marriage certificate to take an advance against their PF for marriage.
This document discusses compensation management. It defines compensation management as providing both monetary and non-monetary rewards to employees in exchange for their work. It outlines the key components of compensation management, including direct monetary compensation like salary and bonuses, indirect compensation like insurance and retirement plans, and non-monetary compensation like recognition and satisfaction. The document also discusses strategies for compensation management, including paying employees based on their position, personal skills, or performance. It concludes by outlining the steps to develop an effective total compensation strategy.
Strategic total rewards management remuneration and rewards summit 11 june 2014Charles Cotter, PhD
The document outlines the agenda and content for the first day of the Smart-Link Consultancy Remuneration and Rewards Summit 2014. The day will include workshops on strategic total rewards management, utilizing rewards to attract and retain talent, engaging and motivating employees, and benchmarking rewards programs. Specific topics that will be covered include rewards strategies, compensation practices, performance management, and employee motivation. The goal is to help organizations develop effective and aligned total rewards programs.
The document discusses developing a reward strategy, including its structure, content, characteristics, and guiding principles. A reward strategy should have a statement of intention, rationale, plan, and definition of guiding principles. It should support business goals, attract and motivate employees, maintain competitive pay, reward contribution, and recognize all effective employees. Developing a strategy involves analyzing business needs, developing HR strategies, justifying and testing the reward plan, implementing it, and reviewing it over time.
Concept of Compensation, Exploring & Defining Compensation Context (Strategic Compensation, Total Compensation, Extrinsic Compensation, Intrinsic Compensation, Components of Compensation, Factors Influencing Compensation, Wage and Salary, Incentives, Fringe Benefits, Perquisites, Govt. Regulations for Compensation in India, Minimum Wage, Fair Wage, Living Wage, Calculation of Minimum Wages)
This document outlines a compensation and incentive plan. It defines compensation and incentives, and discusses the objectives of having such a plan, including attracting and retaining employees, increasing productivity and motivation. It describes different types of individual, group and organizational incentive plans and the advantages and disadvantages of each. Finally, it provides guidance on what makes an effective incentive plan, including clear communication, performance measures linked to objectives, and ensuring the plan is adequate, fair and flexible.
The document discusses various reward systems and theories related to compensation. It covers the key elements of reward systems including base salary, incentives, and benefits. It also discusses equity theory, agency theory, tournament theory, and controversies surrounding pay for performance plans. Some suggestions are provided for more effective pay for performance plans including loosely coupling pay and performance and designing plans to fit each firm's unique situation.
Strategic Compensation: A Component of Human Resource ManagementAsif Ali Khaskheli
This document discusses compensation management and strategic compensation as part of human resource systems. It defines compensation as monetary and non-monetary value provided to employees in exchange for work. The objectives of compensation are to focus employees' efforts, attract quality employees, recruit and retain qualified employees, and motivate employees. Proper compensation aims to attract talent, motivate employees, reward performance, reduce turnover, and manage compensation budgets. Theories of compensation discussed include reinforcement theory, expectancy theory, equity theory, and agency theory.
The document discusses compensation and benefits management. It defines key terms like salary, wages, and compensation. It outlines components of compensation including fixed pay, variable pay, benefits, and financial and non-financial rewards. It discusses factors that influence compensation strategy and policies, different compensation models and structures commonly used in India.
Here are some potential responses to AstraZeneca's questions:
1. Possible non-discriminatory explanations for the pay differences could include differences in average years of experience, differences in average performance ratings if incentive pay was involved, or differences in roles and responsibilities if job descriptions were not tightly controlled. A detailed analysis of individual employee data would be needed to determine the true causes.
2. To ensure pay equity going forward using your point method: conduct annual pay equity audits comparing pay by gender within each job class; educate managers on setting pay objectively based only on point factors, not other attributes; establish a process for employees to confidentially report inequities and investigate/address any issues found.
3. I would
Employee benefits - compensation management - Manu Melwin Joymanumelwin
Employee benefits and benefits in kind (also called fringe benefits, perquisites, or perks) include various types of non-wage compensation provided to employees in addition to their normal wages or salaries
The presentation comprised the strategy to improve employee performances through compensation and benefit. The presentation also includes case study of FMCG industry.
human resource in merger and acquisitionsKushal Shah
The Human Resource (HR) department plays a pivotal role in the process of merger and acquisition between two companies. ... Thus, HR plays a key role in managing all crises as well as disputes that may crop up in an organization, as and when the process of merger and acquisition sets off.
The document discusses compensation and benefits in organizations. It defines compensation as financial returns and tangible benefits employees receive as part of employment. Compensation includes base salary, short-term incentives, and benefits like insurance and paid time off. The document outlines factors in determining compensation structures, rational pay levels, achieving equity in pay, and developing compensation plans.
Pay level refers to the average pay for a job including base salary, bonuses, benefits, and other compensation. It is determined by internal factors like job worth and external factors like market wages. Strategic compensation aims to motivate employees through intrinsic and extrinsic rewards to achieve business goals. Compensation elements like merit pay, job families, job structure, and pay-for-performance plans are used to determine appropriate pay levels. The pay mix is the combination of different pay types that make up total compensation. Organization culture encompasses underlying values and beliefs that guide workplace behaviors.
The document discusses variable pay, including:
- Variable pay aims to reward employees for objectives and results beyond regular job responsibilities, while fixed pay compensates for day-to-day work.
- There are three categories of variable pay: incentives, bonuses, and recognition. Incentives are tied to pre-determined criteria while bonuses are for completing specific tasks. Recognition is more subjective.
- An effective variable pay program is linked to business objectives, has clear purposes and performance measures, and considers factors like eligibility, funding, and implementation.
- In India, the ratio of fixed to variable pay is shifting, with variable pay expected to increase to 25-30% on average from the previous 10-
Strategic role of compensation, strategic compensation policy, total compensa...Ramona Beharry
This PowerPoint deals with the Strategic role of compensation in the organization. States how you develop a total compensation strategy and also strategic compensation planning.
The document discusses reward and recognition programs in organizations. It provides an overview of common elements of total rewards packages and discusses the purpose and benefits of recognition programs. Recognition programs are found to be effective motivators that help with retention, performance, and creating a positive work culture. The document also outlines best practices for designing successful recognition programs, including management support, employee involvement, tailoring rewards, and clear communication.
Presenting this set of slides with name - Compensation Package Powerpoint Presentation Slides. We bring to you to the point topic specific slides with apt research and understanding. Putting forth our PPT deck comprises of thirtynine slides. Our tailor made Compensation Package Powerpoint Presentation Slides editable presentation deck assists planners to segment and expound the topic with brevity. The advantageous slides on Compensation Package Powerpoint Presentation Slides is braced with multiple charts and graphs, overviews, analysis templates agenda slides etc. to help boost important aspects of your presentation. Highlight all sorts of related usable templates for important considerations. Our deck finds applicability amongst all kinds of professionals, managers, individuals, temporary permanent teams involved in any company organization from any field
Benefits, nonfinancial rewards, and other compensationEmran Habeeb
This document discusses various types of benefits and non-financial compensation provided by employers. It begins by distinguishing between legally required benefits such as social security, unemployment compensation, workers' compensation, and family medical leave. It then covers voluntary benefits such as health care, retirement plans, disability protection and other perks. Finally, it discusses how employers are increasingly offering customized benefit plans that allow employees to choose the compensation that best fits their needs.
This proposal outlines executive onboard coaching services to help new executives successfully integrate into new organizations. The summary provides:
1. Executive onboard coaching focuses on helping new executives quickly understand organizational culture and objectives to deliver faster results through coaching in the first critical 6 months.
2. When organizations thoughtfully onboard new executives through coaching, the executive assimilates successfully and both performance and longevity increase, providing a win-win.
3. The proposal partners JSK Coaching Associates with McDermott & Bull to provide their clients with 6-month executive onboard coaching sessions for a preferential rate.
This chapter discusses employee benefits and their management. It covers the growth in benefits costs due to laws and taxes. Common benefit programs in the US include social insurance, private group insurance, retirement plans, and family-friendly policies. The chapter also examines strategies for controlling benefits costs, such as healthcare plans, wellness programs, and regulatory compliance. Effective communication with employees about benefits is also discussed.
The document discusses competency-based human resource management. It provides a framework for building a competency-based HR system that uses competency models as the basis for recruitment, selection, training, performance management, and other HR functions. The document defines competencies, describes how they differ from job descriptions, and provides examples of competency definitions. It also outlines benefits of using competency models for both managers and employees and key characteristics for successful implementation.
This document provides an overview of compensation management. It begins with introducing compensation management including its history, definition, perspectives, purposes, how compensation is used, and the relationship between compensation, performance, motivation, engagement, and turnover. It then discusses compensation systems including definitions of compensation, relational returns, and total compensation. Finally, it outlines compensation models including policies, techniques, and objectives.
Strategic total rewards management remuneration and rewards summit 11 june 2014Charles Cotter, PhD
The document outlines the agenda and content for the first day of the Smart-Link Consultancy Remuneration and Rewards Summit 2014. The day will include workshops on strategic total rewards management, utilizing rewards to attract and retain talent, engaging and motivating employees, and benchmarking rewards programs. Specific topics that will be covered include rewards strategies, compensation practices, performance management, and employee motivation. The goal is to help organizations develop effective and aligned total rewards programs.
The document discusses developing a reward strategy, including its structure, content, characteristics, and guiding principles. A reward strategy should have a statement of intention, rationale, plan, and definition of guiding principles. It should support business goals, attract and motivate employees, maintain competitive pay, reward contribution, and recognize all effective employees. Developing a strategy involves analyzing business needs, developing HR strategies, justifying and testing the reward plan, implementing it, and reviewing it over time.
Concept of Compensation, Exploring & Defining Compensation Context (Strategic Compensation, Total Compensation, Extrinsic Compensation, Intrinsic Compensation, Components of Compensation, Factors Influencing Compensation, Wage and Salary, Incentives, Fringe Benefits, Perquisites, Govt. Regulations for Compensation in India, Minimum Wage, Fair Wage, Living Wage, Calculation of Minimum Wages)
This document outlines a compensation and incentive plan. It defines compensation and incentives, and discusses the objectives of having such a plan, including attracting and retaining employees, increasing productivity and motivation. It describes different types of individual, group and organizational incentive plans and the advantages and disadvantages of each. Finally, it provides guidance on what makes an effective incentive plan, including clear communication, performance measures linked to objectives, and ensuring the plan is adequate, fair and flexible.
The document discusses various reward systems and theories related to compensation. It covers the key elements of reward systems including base salary, incentives, and benefits. It also discusses equity theory, agency theory, tournament theory, and controversies surrounding pay for performance plans. Some suggestions are provided for more effective pay for performance plans including loosely coupling pay and performance and designing plans to fit each firm's unique situation.
Strategic Compensation: A Component of Human Resource ManagementAsif Ali Khaskheli
This document discusses compensation management and strategic compensation as part of human resource systems. It defines compensation as monetary and non-monetary value provided to employees in exchange for work. The objectives of compensation are to focus employees' efforts, attract quality employees, recruit and retain qualified employees, and motivate employees. Proper compensation aims to attract talent, motivate employees, reward performance, reduce turnover, and manage compensation budgets. Theories of compensation discussed include reinforcement theory, expectancy theory, equity theory, and agency theory.
The document discusses compensation and benefits management. It defines key terms like salary, wages, and compensation. It outlines components of compensation including fixed pay, variable pay, benefits, and financial and non-financial rewards. It discusses factors that influence compensation strategy and policies, different compensation models and structures commonly used in India.
Here are some potential responses to AstraZeneca's questions:
1. Possible non-discriminatory explanations for the pay differences could include differences in average years of experience, differences in average performance ratings if incentive pay was involved, or differences in roles and responsibilities if job descriptions were not tightly controlled. A detailed analysis of individual employee data would be needed to determine the true causes.
2. To ensure pay equity going forward using your point method: conduct annual pay equity audits comparing pay by gender within each job class; educate managers on setting pay objectively based only on point factors, not other attributes; establish a process for employees to confidentially report inequities and investigate/address any issues found.
3. I would
Employee benefits - compensation management - Manu Melwin Joymanumelwin
Employee benefits and benefits in kind (also called fringe benefits, perquisites, or perks) include various types of non-wage compensation provided to employees in addition to their normal wages or salaries
The presentation comprised the strategy to improve employee performances through compensation and benefit. The presentation also includes case study of FMCG industry.
human resource in merger and acquisitionsKushal Shah
The Human Resource (HR) department plays a pivotal role in the process of merger and acquisition between two companies. ... Thus, HR plays a key role in managing all crises as well as disputes that may crop up in an organization, as and when the process of merger and acquisition sets off.
The document discusses compensation and benefits in organizations. It defines compensation as financial returns and tangible benefits employees receive as part of employment. Compensation includes base salary, short-term incentives, and benefits like insurance and paid time off. The document outlines factors in determining compensation structures, rational pay levels, achieving equity in pay, and developing compensation plans.
Pay level refers to the average pay for a job including base salary, bonuses, benefits, and other compensation. It is determined by internal factors like job worth and external factors like market wages. Strategic compensation aims to motivate employees through intrinsic and extrinsic rewards to achieve business goals. Compensation elements like merit pay, job families, job structure, and pay-for-performance plans are used to determine appropriate pay levels. The pay mix is the combination of different pay types that make up total compensation. Organization culture encompasses underlying values and beliefs that guide workplace behaviors.
The document discusses variable pay, including:
- Variable pay aims to reward employees for objectives and results beyond regular job responsibilities, while fixed pay compensates for day-to-day work.
- There are three categories of variable pay: incentives, bonuses, and recognition. Incentives are tied to pre-determined criteria while bonuses are for completing specific tasks. Recognition is more subjective.
- An effective variable pay program is linked to business objectives, has clear purposes and performance measures, and considers factors like eligibility, funding, and implementation.
- In India, the ratio of fixed to variable pay is shifting, with variable pay expected to increase to 25-30% on average from the previous 10-
Strategic role of compensation, strategic compensation policy, total compensa...Ramona Beharry
This PowerPoint deals with the Strategic role of compensation in the organization. States how you develop a total compensation strategy and also strategic compensation planning.
The document discusses reward and recognition programs in organizations. It provides an overview of common elements of total rewards packages and discusses the purpose and benefits of recognition programs. Recognition programs are found to be effective motivators that help with retention, performance, and creating a positive work culture. The document also outlines best practices for designing successful recognition programs, including management support, employee involvement, tailoring rewards, and clear communication.
Presenting this set of slides with name - Compensation Package Powerpoint Presentation Slides. We bring to you to the point topic specific slides with apt research and understanding. Putting forth our PPT deck comprises of thirtynine slides. Our tailor made Compensation Package Powerpoint Presentation Slides editable presentation deck assists planners to segment and expound the topic with brevity. The advantageous slides on Compensation Package Powerpoint Presentation Slides is braced with multiple charts and graphs, overviews, analysis templates agenda slides etc. to help boost important aspects of your presentation. Highlight all sorts of related usable templates for important considerations. Our deck finds applicability amongst all kinds of professionals, managers, individuals, temporary permanent teams involved in any company organization from any field
Benefits, nonfinancial rewards, and other compensationEmran Habeeb
This document discusses various types of benefits and non-financial compensation provided by employers. It begins by distinguishing between legally required benefits such as social security, unemployment compensation, workers' compensation, and family medical leave. It then covers voluntary benefits such as health care, retirement plans, disability protection and other perks. Finally, it discusses how employers are increasingly offering customized benefit plans that allow employees to choose the compensation that best fits their needs.
This proposal outlines executive onboard coaching services to help new executives successfully integrate into new organizations. The summary provides:
1. Executive onboard coaching focuses on helping new executives quickly understand organizational culture and objectives to deliver faster results through coaching in the first critical 6 months.
2. When organizations thoughtfully onboard new executives through coaching, the executive assimilates successfully and both performance and longevity increase, providing a win-win.
3. The proposal partners JSK Coaching Associates with McDermott & Bull to provide their clients with 6-month executive onboard coaching sessions for a preferential rate.
This chapter discusses employee benefits and their management. It covers the growth in benefits costs due to laws and taxes. Common benefit programs in the US include social insurance, private group insurance, retirement plans, and family-friendly policies. The chapter also examines strategies for controlling benefits costs, such as healthcare plans, wellness programs, and regulatory compliance. Effective communication with employees about benefits is also discussed.
The document discusses competency-based human resource management. It provides a framework for building a competency-based HR system that uses competency models as the basis for recruitment, selection, training, performance management, and other HR functions. The document defines competencies, describes how they differ from job descriptions, and provides examples of competency definitions. It also outlines benefits of using competency models for both managers and employees and key characteristics for successful implementation.
This document provides an overview of compensation management. It begins with introducing compensation management including its history, definition, perspectives, purposes, how compensation is used, and the relationship between compensation, performance, motivation, engagement, and turnover. It then discusses compensation systems including definitions of compensation, relational returns, and total compensation. Finally, it outlines compensation models including policies, techniques, and objectives.
The document discusses compensation management and defines compensation as all forms of financial returns, tangible services, and benefits that an employee receives during employment. It outlines different components of compensation including basic wages, incentives, and benefits. The objectives of compensation planning are discussed as well as theories of wage determination such as traditional theory based on market forces and theory of negotiated wages through collective bargaining. Different types of wages like time rates, piece rates, and minimum wages are also summarized.
The importance of benchmarking your total reward packageHay_Group_PSUK
The document discusses the importance of benchmarking total remuneration (TR), which includes both cash compensation and benefits. It provides three approaches to benchmarking benefits: 1) using prevalence data, 2) using an actuarial valuation of benefits, and 3) using a standard cost of employment approach. The document advocates considering the total remuneration package rather than individual elements, and provides examples of companies that benchmarked total remuneration and were able to make better reward decisions as a result. International differences in benefits as a percentage of compensation are also highlighted.
The document discusses the company's talent supply chain which includes three facets: talent acquisition, talent management, and talent retention. Talent acquisition involves selection, assessment, interviewing, onboarding, and diversity programs. Talent management covers performance management, leadership development, succession planning, assessments, and employee development. Talent retention focuses on compensation, rewards, culture, and surveys. The company aims to align its talent processes with business objectives.
The document discusses key aspects of developing compensation plans, including identifying appropriate compensation policies, establishing internal pay equity, and understanding different approaches such as job-based versus skill-based compensation. It also outlines the components of compensation systems, types of compensation, total compensation packages, criteria for developing plans, and tools for setting compensation.
Employee motivation,incentives and fringe benefitsFaltu Focat
The document discusses various theories and approaches to motivating employees, including incentives and fringe benefits. It describes motivation as being driven by needs and desires and influenced by both intrinsic and extrinsic factors. A number of prominent motivation theories are examined, including Maslow's hierarchy of needs, Herzberg's two-factor theory, and McClelland's achievement motivation theory. The document also outlines different types of incentive plans that can be used to motivate employees, such as financial incentives like bonuses and profit sharing, as well as non-financial incentives like recognition and flexible work schedules. Finally, it defines and discusses the purpose of providing fringe benefits to employees.
The Rewards & Recognition Framework - Aditya YadavAditya Yadav
This document discusses frameworks for rewards and recognition (R&R) in large organizations. It argues that traditional R&R systems are often dysfunctional and ineffective because they are not properly tied to business goals. The document proposes new, crisper definitions for monetary rewards, non-financial recognition, incentives, and honors that are better aligned with success, contributions, and business objectives. It distinguishes these terms from basic compensation like salary, bonuses, and perks. The overall aim is to build R&R systems from first principles that promote goals, innovation, and collaboration across large, global organizations.
IHRM deals with managing human resources on a global scale, considering laws across countries and the diverse needs of an internationally diverse workforce. IHRM involves more complexity in managing employees from different cultures and countries, and must adapt to external global risks and influences. In contrast, HRM focuses only on domestic operations and employees, following standard domestic policies and facing less complexity and risk given the homogeneous domestic workforce.
Chapter 13 Variable Pay and Executive CompensationRayman Soe
This document discusses variable pay and executive compensation. It covers topics like developing successful pay-for-performance plans, individual and group incentives, sales compensation plans, profit sharing, employee stock ownership plans, and executive compensation packages and issues. The key elements discussed include linking compensation to performance, using clear and understandable incentive plans, developing appropriate performance metrics, and ensuring plans are fair and motivate improved results.
This document provides guidance for supervisors on conducting new employee orientations. It outlines the goals of orientation to welcome new employees, provide essential information, help supervisors assess training needs, and create a positive first impression. It recommends covering key company and department information, benefits, and the new employee's job. The supervisor's role is to plan and oversee the orientation process, coordinate with HR, and evaluate the new employee's progress. The document provides details on activities before, during, and after the first day of work to onboard new employees successfully.
Chapter 10 Pay-for-Performance: Incentive RewardsRayman Soe
This document provides an overview of incentive compensation plans, including individual and group plans. It discusses the strategic reasons for implementing incentive plans, such as tying pay to performance. Common types of individual plans are described, including piecework, standard hour plans, bonuses, and merit pay. Guidelines for effective administration of incentive plans are provided. The document also covers sales incentive plans and issues with merit raises not adequately motivating employees. In summary, it reviews best practices for incentive compensation to link rewards to goals and foster employee commitment.
Role and Responsibilities HR Executive in a CompanyYour HR World
A human resources manager oversees all aspects of workforce development and management for her employer, ensuring the company is appropriately staffed.
The document discusses different types of pay-for-performance plans including shop-floor incentives, sales force incentives, executive pay, and team-based pay. It outlines the importance of designing pay plans that support corporate objectives, are fair and equitable, and comply with laws. Different types of team-based pay plans like profit-sharing, gain-sharing, and employee stock ownership plans are described as ways to incentivize and reward employee performance.
Talent acquisition involves attracting, selecting, and onboarding talented individuals who are aligned with the business strategy and possess the required competencies. It is part of an overall talent management strategy that aims to have the right people in the right jobs at the right time. The talent acquisition process includes defining needs, sourcing candidates, application screening and interviews, making offers, and notifying non-selected candidates. Effective talent acquisition requires considering both the person-job fit and person-organization fit to identify individuals who will integrate and perform well.
The HR Manager is the most critical role in the HR Organization. The HR Manager represents Human Resources and shares responsibilities with the HR team and the internal client.
The role of the HR Manager is difficult, and the most experienced HR Professionals should be promoted to the role of the HR Manager.
The document discusses key topics in human resource management including gaining competitive advantage through people, the impact of globalization and technology, managing change, developing human capital, responding to market pressures, containing costs, and addressing demographic and employee concerns. It outlines objectives for understanding how these factors influence HR strategies and the roles and competencies of today's HR managers.
This document discusses the challenges of human resource management in modern organizations. It begins with an introduction on the importance of human resources to an organization's success. It then identifies several challenges HR faces, including globalization, workforce diversity, technological advances, changes in the political/legal and economic environments, information technology revolutions, and organizational restructuring. Additional challenges discussed include professional mobility, the growing importance of strategic HR, and factors like accommodating worker needs, increased managerial complexity, legislation/litigation, consistency, expertise, and human resource costs. The document emphasizes that effective HR management is needed to help organizations adapt to these ongoing changes in the business environment.
Introduction to human resource managementTanuj Poddar
The document provides an introduction to human resource management. It discusses key points such as the definition of HRM, the history and evolution of HRM approaches, functions of HRM including strategic and operational functions, emerging roles of HRM, and challenges faced by HR professionals. Organizational structure and its relationship to HRM is also examined, including differences between formal and informal organizations as well as line and staff functions. The roles of HR executives are outlined.
New Zealand faces challenges in attracting skilled immigrants including an aging population, falling birth rates, and brain drain. It also struggles to attract and retain international students due to issues with how welcoming immigration policies are and how the country is perceived. There is no simple answer to what people want from work today as it depends on various factors like age, circumstances, values, and culture. Organizations offer various intrinsic and extrinsic rewards to motivate employees including pay, benefits, recognition, and opportunities for growth.
This document discusses total reward systems and compensation. It provides an overview of compensation components including base salary, annual bonuses, and other cash incentives. It discusses how to build a sound compensation program by looking at job content, market pay practices, and plan design. It also discusses keeping compensation plans simple and using various performance measures and incentive payout structures.
This document discusses total reward systems and compensation. It provides an overview of compensation components including base salary, annual bonuses, and incentives. It discusses building sound cash compensation programs and focusing on cash incentives. It emphasizes that the most important reward component is spending quality time with family.
Recommendations & Insights on Managing Gen-Y at Workplace by Deepa Mohamed, T...CorporateShiksha
This document discusses different generations in the workplace and how to improve interaction among them. It provides information on characteristics, communication styles, and attributes of Traditionalists, Baby Boomers, Generation X, and Generation Y. It also discusses their work ethics, leadership styles, communication preferences, and what types of messages motivate each generation. The document provides tips for managing different generations, such as assigning mentors, offering various learning opportunities, providing feedback and job rotation. It emphasizes aligning organizational goals with employee interests, appreciation, transparency, empowerment, and not isolating or micromanaging younger generations.
This document provides an overview of compensation and benefits/reward management. It discusses key topics such as the definition and objectives of reward management, the theoretical context of rewards, dimensions and determinants of reward strategies, traditional versus new pay philosophies, and debates around best practice versus best fit approaches. The summary highlights the strategic focus of modern reward management and its link to business objectives.
Sylvia Doyle gave a presentation on developing an effective reward strategy. She discussed why reward strategies often fail to deliver, the importance of stakeholder involvement, and a 4 phase process for developing a strategy that includes diagnosis, design, testing, and implementation. The goal is to create a strategy aligned with organizational culture and goals to incentivize the desired behaviors and outcomes.
Getting the Right Reward Strategy by Sylvia Doyle Reward First People Consult...Zeina Barker
The document summarizes Sylvia Doyle's presentation on developing an effective reward strategy. The presentation covered:
1) Why reward strategies often fail to deliver due to issues like poor communication, lack of buy-in, and misalignment with culture.
2) The key phases in developing a strategy: diagnosis, design with stakeholder input, testing and validation, and implementation.
3) That a total reward approach looks at all aspects of reward, not just pay, to attract, retain and engage employees.
This document provides an overview of compensation and reward management concepts. It discusses topics such as the concept of compensation, different compensation systems, economic theories of wages, wage administration at the micro level, and various wage concepts. It also covers the roles of employees, employers, unions and the government in compensation and reward management. Finally, it lists some key legislations in India that affect compensation.
The document discusses reward and recognition in organizations. It addresses what motivates employees, different reward systems organizations can develop, and the differences between rewards and recognition. It also examines theories of motivation and how they relate to reward systems. While motivation theories provide guidance, the document notes there are many practical challenges to applying them, such as defining and measuring performance fairly. Overall, the document advocates a selective approach to rewards that considers an organization's size and resources.
This document provides an overview of compensation and benefits/reward management. It defines reward management and discusses its objectives, which include aligning rewards with business strategy and driving desired behaviors. It also covers the dimensions and determinants of a reward strategy, including external market factors, internal job factors, and individual performance. Finally, it discusses trends in reward management, like a shift toward contingent, variable pay linked to business needs rather than seniority. The overall summary is that the document outlines the key components and considerations in developing an effective organizational reward strategy.
The document provides strategies for attracting, developing, and retaining top talent. It discusses the high costs of miss-hires for managerial positions and outlines best practices for recruiting top talent, including employee referrals and targeting top recruiters. It defines three levels of talent - A, B, and C players - and emphasizes the importance of attracting and retaining A-level top talent. The document also discusses principles for effectively rewarding top talent, such as aligning rewards with business goals and integrating different reward tools. Finally, it suggests that retaining top talent requires understanding what they want, such as a challenge, fun at work, and opportunities for growth.
The document discusses making total rewards work and outlines Girish Kohli's experience and qualifications. It provides an overview of total rewards, including compensation philosophy, implementation, and tracking success. Specific topics covered include developing pay bands and compensation processes, implementing career frameworks and benefits/work-life balance programs, and measuring the impact on employee and business outcomes. The presentation aims to help organizations optimize their total rewards programs.
This document discusses using benefits as a differentiator for employee value proposition (EVP). It notes that employers need to revisit the benefits they offer to determine the perceived value by employees versus the real costs. The goal is to optimize total rewards by enhancing the benefits offered to better support business objectives while being valued more by employees. This involves communicating benefits effectively using various online tools and messaging to better align the perceived and actual value of the rewards program with the company's EVP.
This document provides an introduction to strategic compensation management. It discusses the key components of compensation including wages and salaries, incentives, fringe benefits, and perquisites. It also defines total compensation as consisting of base compensation, pay incentives, and indirect compensation/benefits. Finally, it outlines factors that influence pay such as market forces, organizational policy, work value, and individual performance.
Navigate towards engagement culture in organisationTan Hok Eng
The document discusses developing an engagement culture in organizations. It argues that engagement requires aligning employee values and goals with the company's vision, strategy, and expectations. An engaged workforce is important for business success but currently only 31% of global employees are engaged. The document recommends coaching as a powerful tool to facilitate engagement. It provides a structured model with four directions and three dimensions to develop engagement at the personal, team, and organizational levels.
This document discusses using benefits as a way to differentiate an employer and attract top talent. It provides examples of how benefits can be aligned with an organization's employee value proposition. Specifically, it outlines ITC's approach of aligning benefits like pension plans, medical coverage, housing, and work-life balance perks to their goals of long-term engagement, talent development, and employee wellness. The document also discusses externalizing versus internalizing human capital and how benefits strategies may differ depending on whether a job is considered core, ancillary, or compulsory human capital.
This document discusses employee motivation in 3 paragraphs:
1) It defines motivation and discusses theories of motivation including Maslow's hierarchy of needs, McGregor's XY theory, and McClelland's motivational needs theory focused on achievement, affiliation, and power.
2) It discusses factors that motivate employees both externally like salary and benefits, and internally like achievement and responsibility.
3) It covers reasons for demotivation and why employees leave jobs, such as lack of learning opportunities, feedback, and challenges or bad bosses. The document aims to understand what drives employee actions and how to motivate maximum performance.
2. Compensation: Meaning
Total Compensation <Total Rewards>
How Total Rewards Motivate & Retain
SESSION 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 Strategy
SESSION 2
Communicating & Management of Total
Rewards - Implementing the Rewards
effectively
Ms. Deepa Mohamed
4. Overall annualized attrition average is 18.6% across all sectors
Key Reasons for Attrition:
•Career Advancement
•Personal Reasons (Family)
•Compensation
Ms. Deepa Mohamed
7. Compensation: Meaning
Total Compensation
SESSION 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 Strategy
SESSION 2
Communicating & Management of Total
Rewards - Implementing the Rewards
effectively
Ms. Deepa Mohamed
8. Total Returns
Total Relational
Compensation Returns
Learning
Opportunities
Challenging
Recognition Work
& Status Employment
Cash Benefits Security
Compensation
Base Allowances
Long –Term
Incentives Income Work/Life
Protection Focus
Merit/Cost Short –Term
of Living Incentives
Ms. Deepa Mohamed
9. Compensation: Meaning
Total Compensation <Total Rewards>
How Total Rewards
SESSION 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 Strategy
SESSION 2
Communicating & Management of Total
Rewards - Implementing the Rewards
effectively
Ms. Deepa Mohamed
11. 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
13. So how many of you get maximum
‘ YES’
Congrats!!!
you are the fortunate ones, “Please Stick to
that company”
Ms. Deepa Mohamed
14. 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
15. Compensation Wages, commissions and bonuses Incentive plans, Performance appraisals
Tie- up with various Health institutions, gyms, free
Benefits Vacations, Health Insurance health check-ups.
- Employee wellness, Health Check ups.
Social Interaction Friendly workplace Work culture
Stable, consistent positions and
Security
rewards
Status/recognition Respect, prominence due to work Succession planning
Opportunity to experience
Work variety Job Rotation
different things
Right amount of work (not too
Workload
much/ not too little)
Work Importance Is work valued by society
Authority/control/auto Ability to influence others; control
nomy own destiny
Advancement Chance to lead Mentoring & Coaching
Receive information helping to
Feedback Performance Counseling and feedback
improve performance
Work Conditions Hazard free Health and safety policies at work
Formal and informal training to
Development Learning and Development such as various trainings
learn new knowledge
opportunity as per TNA of employees, CGP (career growth path)
skills/abilities
Ms. Deepa Mohamed
16. from the cost perspective, motivation and
retention perspective
17. 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 organization's mission and
and leadership and have a strong influence on
vision.
employee trust in workplace.
Guarantee Organisational Justice – Grievance
Handling, two – way communication TOTAL REWARDS
Create a sense of community – Like defense
services build value based homogeneity i.e.
“Camaraderie”.
Support Employee Development - Commit to
actualization, provide challenging jobs, enrich & Money Recognition Benefits
empower, promote from within, promote Rewards
developmental & 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”.
18. 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
19. 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
20. High
Culture of Culture of High
Churn-over Performance
Expectations
Culture of
Medium
Mediocrity
Culture of Culture of
Disengagement Entitlement
Low
Low Medium High
Ms. Deepa Mohamed Rewards
21. Via their
TRANSACTIONAL
COMPONENTS & RELATIONAL
COMPONENTS
“Poor or good Pay Meritocracy
Master’ 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
22. Compensation: Meaning
Total Compensation <Total Rewards>
How Total Rewards Motivate & Retain
Employees
SESSION 1
Employment
Relationship Matrix
Various “generations specific’ Total Rewards
Internal Labor Market: O-P-T Model
How to develop Pay Model
Linking Business with Strategy
SESSION 2
Communicating & Management of Total
Rewards - Implementing the Rewards
effectively
Ms. Deepa Mohamed
23. 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 enhance
productivity & Job Performance.
For this we need to apply all understandings of various motivational
theories as well as gender and age specific requirements.
24. HIGH
HIGH PAY
HIGH PAY LOW
HIGH
COMMITMENT
COMMITMENT
TRANSACTIONAL
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
25. 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 motivate
Herzberg’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 performance
Reinforcement 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
26. 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.
27. Compensation: Meaning
Total Compensation <Total Rewards>
How Total Rewards Motivate & Retain Employees
Employment Relationship Matrix
SESSION 1
Various “generations,
gender, age specific’
Total Rewards
Internal Labor Market: O-P-T Model
How to develop Pay Model
Linking Business with Strategy
SESSION 2
Communicating & Management of Total
Rewards - Implementing the Rewards
effectively
Ms. Deepa Mohamed
28. Yes, Of course…
Now we have realized what motivates employees, let’s see
“How various Generations are affected by this?”
29. •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
33. So are you ready to Design a PAY MODEL??
Ms. Deepa Mohamed
34. 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 I'm the hero of the younger set.
I'm the number one attraction in every supermarket parking lot.
M I'm the king of Kansas City. No thanks, Omaha, thanks a lot.
Kansas City Star, that’s what I are…
Ms. Deepa Mohamed
35. 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
36. •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
37. Compensation: Meaning
Total Compensation <Total Rewards>
How Total Rewards Motivate & Retain
SESSION 1 Employees
Employment Relationship Matrix
Various “generations, gender, age specific’
Total Rewards
Internal Labor Market:
O-P-T Model
SESSION 2
How to develop Pay Model
Linking Business with Strategy
Communicating & Management of Total
Rewards - Implementing the Rewards
effectively
Ms. Deepa Mohamed
38. 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
39. Whether pay is leading catalyst for change or a follower of change - Compensation
Manager 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
40. 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
45. • 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
46. 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
47. External Competitiveness
Labor Market Factors
•Nature of Demand
•Nature of Supply
Product Market Factors
•Degree of Competition EXTERNAL
•Level of Product Demand
COMPETITIVENESS
Organization Factors
•Industry, Strategy, Size
•Individual Manager
Ms. Deepa Mohamed
48. External Competitiveness
Theory Prediction HR Action
Compensating 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
49. External Competitiveness
PERFORMANCE 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% Base
Options
80%
10%
Bonus
10%
Ms. Deepa Mohamed
50. 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
51. 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
52. 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
54. Compensation: Meaning
Total Compensation <Total Rewards>
How Total Rewards Motivate & Retain
SESSION 1 Employees
Employment Relationship Matrix
Various “generations, gender, age specific’
Total Rewards
Internal Labor Market: O-P-T Model
How to develop Pay
Model
SESSION 2
Linking Business with Strategy
Communicating & Management of Total
Rewards - Implementing the Rewards
effectively
Ms. Deepa Mohamed
55. Column1 IT Organization Y Telecom Z Startup
OBJECTIVES
INTERNAL
ALIGNMENT
EXTERNALLY
COMPETITIVE
EMPLOYEE
CONTRIBUTION
MANAGEMENT
TECHNIQUES
Ms. Deepa Mohamed
56. 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 Driven
MANAGEMENT
Software supported. Entrepreneurial Control
Self Managed
Strong PMS Strong L&D LOS
TECHNIQUES Competencies Mapping Reinforcement
57. Compensation: Meaning
Total Compensation <Total Rewards>
How Total Rewards Motivate & Retain
SESSION 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
SESSION 2
Strategy
Communicating & Management of Total
Rewards - Implementing the Rewards
effectively
Ms. Deepa Mohamed
59. Mission –
Why We Strategic
Strategy Outcomes
Exist Map :
Translate Satisfied
the Shareholders
Vision – Strategy Strategy
What We Our Delighted
Want to Game Customers
Be Plan Excellent
Balanced Processes
Values – Scorecard :
Measure Motivated
What’s
and Focus Workforce
Important
to Us
Ms. Deepa Mohamed
61. Business HR Program Compensation
Strategy PMS
Response Alignment Systems
Innovator:
Increase Product
Complexity and
Shorten Product
Life Cycle.
E.g. Samsung &
Nokia
Cost Cutter: Focus
on Efficiency
Customer
Focused: Increase
Customer
Expectations
Ms. Deepa Mohamed
62. 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 - High
Increase 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 weightage
Cost 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 on
Focused: Increase Customer Contact.
Customer *Customer Perspectives
Expectations measurement - Crucial in
Performance Measurement
Ms. Deepa Mohamed
63. 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
64. 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
65. Compensation: Meaning
Total Compensation <Total Rewards>
How Total Rewards Motivate & Retain
SESSION 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
67. THE COMPENSATION
COMMUNICATION CYCLE
Was the What are
program
successfu the
l? goals?
DESIGNING & How should
EFFECTIVE
What is
FORMULATING 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
68. Criteria Equity Insurance
Goals • Net Revenue • Premium Net of default
• Less Compliance Issues • More Renewal percentage
• Increase in Client base • Less Policy default
Current • Market down • Increase awareness about Insurance
Market/Industry • Lots of players; strengthening their • 40% revenue through renewal
Situation position • Strict IRDA ruling on mis-selling
• Strict Regulatory guidelines
Best Overall Compensation Structure Compensation Structure
approach 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)
implemented
Success of the PMS Evaluation: Compensation/increment on the basis of PMS Scores Counseling
program (HOD meeting and counseling the staff/employees)
69. We all undermine the “Reward Value” of Good Reputation- A Dream
Company- ‘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
70. WORK & LIFE BENEFIT
• policies and programs “on-site child care”
• Paid Leaves
PENSION 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
72. CONTACT DETAILS:
Email id : djmohamed@smcindiaonline.com
SMC Group of Companies
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