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.
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.
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.
This document summarizes key aspects of employee engagement. It defines engagement as employees feeling invested in an organization's success and being motivated to exceed job requirements. The document outlines what managers can do to improve engagement levels among satisfied, motivated, committed, and advocate level employees. It also identifies key drivers of engagement, including leadership, career advancement, and job motivation. A case study on Singapore's civil service found these three factors explained most of the variance in engagement scores. The document concludes that compensation is important but other non-financial factors also influence engagement.
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 various types of compensation schemes including:
1. Payment by Result (PBR) schemes which provide incentives for individual time savings or group/plant outputs but can diminish work quality and employee motivation.
2. Plant/enterprise based schemes like gain-sharing and productivity bonuses which focus on whole organization performance.
3. Modern pay schemes like share option plans that allow employees to buy company shares to increase identification with the firm.
4. Individual performance related pay where pay or bonuses are linked to individual performance but reliable performance measurement can be difficult. Rewarding team performance through bonuses can encourage cooperation but distinguishing individual contributions can also be challenging. Merit pay programs assume compensation should reflect performance differences but
This document outlines different financial and non-financial methods that can be used to motivate employees. Financial methods include piece rates, salary, bonuses, profit sharing, time rates, commission, and performance related pay. Non-financial methods include job enlargement, job enrichment, team empowerment, fringe benefits, and job rotation.
You are paying up to 30% of your payroll for benefits and pensions. Are you getting full value? Have you considered different funding arrangements? Have you considered flexible spending accounts? How about considering an ASO plan if you are over 100 employees? How about integrating a wellness program into your benefits program and receive a 20 to 1 payback in terms of reduced benefit costs, increased productivity, improved lost time, and increased employee health?
The document discusses compensation systems and employee behavior. It outlines the bases of traditional and modern pay systems. The traditional system bases pay on cost of living, seniority, and individual performance. The modern system uses variable pay based on business and individual/team performance. It emphasizes variable pay over base salary. The purpose of compensation is to attract talent, ensure equity, motivate staff, and reward valued behavior. Companies establish pay plans by linking compensation philosophy and activities to business goals, strategy, and objectives. The plans are periodically reevaluated.
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.
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.
This document summarizes key aspects of employee engagement. It defines engagement as employees feeling invested in an organization's success and being motivated to exceed job requirements. The document outlines what managers can do to improve engagement levels among satisfied, motivated, committed, and advocate level employees. It also identifies key drivers of engagement, including leadership, career advancement, and job motivation. A case study on Singapore's civil service found these three factors explained most of the variance in engagement scores. The document concludes that compensation is important but other non-financial factors also influence engagement.
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 various types of compensation schemes including:
1. Payment by Result (PBR) schemes which provide incentives for individual time savings or group/plant outputs but can diminish work quality and employee motivation.
2. Plant/enterprise based schemes like gain-sharing and productivity bonuses which focus on whole organization performance.
3. Modern pay schemes like share option plans that allow employees to buy company shares to increase identification with the firm.
4. Individual performance related pay where pay or bonuses are linked to individual performance but reliable performance measurement can be difficult. Rewarding team performance through bonuses can encourage cooperation but distinguishing individual contributions can also be challenging. Merit pay programs assume compensation should reflect performance differences but
This document outlines different financial and non-financial methods that can be used to motivate employees. Financial methods include piece rates, salary, bonuses, profit sharing, time rates, commission, and performance related pay. Non-financial methods include job enlargement, job enrichment, team empowerment, fringe benefits, and job rotation.
You are paying up to 30% of your payroll for benefits and pensions. Are you getting full value? Have you considered different funding arrangements? Have you considered flexible spending accounts? How about considering an ASO plan if you are over 100 employees? How about integrating a wellness program into your benefits program and receive a 20 to 1 payback in terms of reduced benefit costs, increased productivity, improved lost time, and increased employee health?
The document discusses compensation systems and employee behavior. It outlines the bases of traditional and modern pay systems. The traditional system bases pay on cost of living, seniority, and individual performance. The modern system uses variable pay based on business and individual/team performance. It emphasizes variable pay over base salary. The purpose of compensation is to attract talent, ensure equity, motivate staff, and reward valued behavior. Companies establish pay plans by linking compensation philosophy and activities to business goals, strategy, and objectives. The plans are periodically reevaluated.
Packages Private Limited provides premium packaging solutions. It was established in 1956 and employs over 3000 people. The company had sales of over $100 million in 2004. It attracts and retains employees by fostering innovation and rewarding performance. Packages considers internal and external factors to determine pay and ensure employee needs are met. Compensation includes salaries, bonuses, incentives, and benefits like insurance, social assistance, and time off. The company uses both seniority and merit-based pay systems to motivate workers.
The document discusses components of compensation systems including internal equity, external equity, and individual equity. It covers job evaluation methods like job ranking, grading, factor comparison, and point method. Key aspects of designing compensation for internal equity are discussed like job analysis, job description, job specification, and job evaluation process. External equity is established through compensation surveys. Individual equity considers pay ranges, broadbanding, and setting individual pay based on seniority, merit and skills.
Human Capital (September 2010) Reap What You Sow-ROI On RewardSimran Oberoi
1) Measuring return on investment (ROI) for reward programs is important for companies to maximize their reward spending and ensure it aligns with business objectives. Key aspects that impact ROI include variable pay, benefits, differentiated rewards for top performers, and performance metrics.
2) To properly measure ROI, companies must define investment as total remuneration costs and benchmark outcomes against business goals. They should also examine performance metrics and ensure a balance of financial and non-financial metrics are used.
3) Engaging and enabling top talent is critical for companies to achieve higher ROI. Companies that engage and enable employees outperform peers on financial metrics. Changing systems and processes to remove barriers is important to allow employees to succeed.
Executive compensation consists of salary, bonus, long-term incentives, and perquisites. Salary makes up 40-60% of compensation but is subject to taxes, while bonuses and stock options are incentives. Perquisites include benefits like cars, clubs, and first-class travel. Compensation also includes retirement benefits, health insurance, and vacations. Unique features of executive pay include secrecy, varying amounts between executives, and tying pay to organizational performance. Companies use various strategies like cost-to-company packages, performance-linked payments, and flexible benefits to motivate and retain executives.
This document provides an overview of components of compensation packages including fringe benefits, incentives, and retirement benefits. It focuses on fringe benefits and incentives. Fringe benefits are forms of remuneration not directly related to tasks but can include things like company cars, health insurance, bonuses, etc. Incentives aim to motivate performance and can be individual-based like bonuses or group-based. Common incentive plans include Halsey, Halsey-Weir, and Rowan plans which provide bonuses based on time saved against standards. Group incentives link pay to team performance but can weaken individual effort relationships. Proper incentive design considers targets, funding, and fair reward allocation.
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.
A payment system is any system used to settle financial transactions through the transfer of monetary value. Common payment systems include operational networks that link bank accounts to enable monetary exchange using bank deposits. There are several types of pay schemes such as individual, profit sharing, and group based schemes. Performance pay can include merit pay, incentive pay, profit sharing, and performance bonuses. While pay systems aim to improve employee performance and retention, they can also lead to problems like reduced satisfaction and increased competition between employees if not implemented properly.
Compensation management is an integral part of managing an organization and involves designing total compensation packages for employees. It aims to assist with recruitment, job performance, and satisfaction through monetary and non-monetary benefits. Compensation includes basic wages or salaries as well as other components like dearness allowance, incentives, bonuses, commissions, benefits, and profit sharing. Effective compensation management contributes to an organization's success by attracting and retaining quality employees while managing costs. It is important for managers to appreciate the value of competitive pay and investing in human resources.
The document discusses reward policy and practices from 2010-2020 based on a confidential HR presentation. It notes that few organizations have clearly defined reward policies and strategic thinking on rewards is often considered a waste of time. It provides an overview of reward practices in the US and UK, including that only 30-35% of organizations systematically evaluate jobs, conduct pay audits, or have written reward strategies. The document outlines major reward trends that may occur from 2010-2020 such as increased focus on performance-based rewards, recognition, and aligning rewards with business strategy and employee needs. It also discusses challenges around global talent shortages and retaining top performers.
Compensation and Benefits Daily Advisor media kitJustin Terribile
Media Kit for BLR's Compensation and Benefits media network of HR, Compensation, and Benefits professionals. Gain access to our network of over 200,000 HR, Compensation and Benefits decision makers on a daily basis.
We offer a variety of advertising opportunities including:
• Website banner and textual ad placements
• Email Newsletter Banner Advertising & Sponsorships
• White paper sponsorships
• Live Event Sponsorships
• Cost Per Lead (CPL) campaigns
• Webinars
The document discusses executive compensation, including its purposes and typical elements. It aims to attract, retain, and motivate executives. Compensation usually includes salary, bonuses, stock options, and benefits. Critics argue CEO pay has increased much more than average workers' pay, with CEOs now earning 263 times a typical worker versus only 8 times in the 1950s. Questions are raised around using peer benchmarks and whether the government should regulate compensation. Performance-based pay may better motivate executives if tied closely to firm performance.
The document discusses strategic enterprise management and how to align corporate objectives and human capital. It introduces using a balanced scorecard approach and competency models to integrate performance management, compensation, and talent development processes. This would help organizations effectively implement business strategies and leverage human capital contributions.
The changing face of reward examines how the business drivers of reward are changing due to the impact of the global downturn and other macroeconomic trends in the global economy.
This document summarizes recent trends in compensation and reward management in India's public banking sector. It discusses that while public sector banks offer greater job security, salaries tend to be lower than private banks. To address concerns over lower salaries leading to attrition, the government is planning to introduce performance-linked incentives for employees. This would allow banks to earmark over 1% of net profits for incentives if targets for areas like loan growth and reducing non-performing assets are met. Other trends discussed include proposed increases to retirement age and the variable pay component of employee packages.
The document discusses compensation and benefits practices at various organizations. It provides an overview of compensation systems, including direct and indirect components. It also covers the needs for compensation, designing equitable compensation considering internal and external equity, and linking pay to performance. The document concludes by giving examples of compensation and benefits plans of companies like Google, Procter & Gamble, Apollo Hospitals, and Wipro.
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 discusses trends in compensation management. It reviews new trends, common compensation offerings, and the future of compensation. Understanding compensation is key to understanding compensation management. Compensation policies are driven by a company's philosophy of how best to compensate employees. Compensation management aims to compensate employees for their services through payments like salaries and benefits. Emerging trends include evaluating market competitiveness, emphasizing total rewards statements, linking compensation to strategic goals, and refocusing on pay-for-performance. Compensation packages are also expanding to include perks focusing on work-life balance, wellness initiatives, incentive-based pay, and flexibility.
This document discusses employee compensation and its components. It covers direct financial payments like wages and salaries which can be time-based or performance-based. It also discusses indirect financial payments like benefits. Several factors determine compensation plan design including strategy, equity, legal and union considerations. Compensation must be aligned with business strategy and attract behaviors needed to achieve strategic goals. Equity in compensation must also be maintained both internally and externally. Laws also regulate minimum wages, overtime, benefits and prohibit discrimination.
Role of compensation in organization - compensation management - Manu Melwi...manumelwin
Compensation is fundamental to organization formation and its existence. People work to earn their living and organization compensates employees by providing monetary and non monetary benefits and other amenities for producing goods and services.
The document discusses concepts related to compensation and reward management including pay models, internal equity, external equity, and employee equity. It covers forms of compensation including base pay, incentives, and cost of living adjustments. Key aspects of designing pay structures are also outlined such as determining pay level policies by leading, meeting, or following competition. Methods for evaluating jobs like ranking, classification, factor comparison, and point plans are explained. The importance of conducting pay surveys and using the data to construct policy lines and design pay ranges is also highlighted.
Packages Private Limited provides premium packaging solutions. It was established in 1956 and employs over 3000 people. The company had sales of over $100 million in 2004. It attracts and retains employees by fostering innovation and rewarding performance. Packages considers internal and external factors to determine pay and ensure employee needs are met. Compensation includes salaries, bonuses, incentives, and benefits like insurance, social assistance, and time off. The company uses both seniority and merit-based pay systems to motivate workers.
The document discusses components of compensation systems including internal equity, external equity, and individual equity. It covers job evaluation methods like job ranking, grading, factor comparison, and point method. Key aspects of designing compensation for internal equity are discussed like job analysis, job description, job specification, and job evaluation process. External equity is established through compensation surveys. Individual equity considers pay ranges, broadbanding, and setting individual pay based on seniority, merit and skills.
Human Capital (September 2010) Reap What You Sow-ROI On RewardSimran Oberoi
1) Measuring return on investment (ROI) for reward programs is important for companies to maximize their reward spending and ensure it aligns with business objectives. Key aspects that impact ROI include variable pay, benefits, differentiated rewards for top performers, and performance metrics.
2) To properly measure ROI, companies must define investment as total remuneration costs and benchmark outcomes against business goals. They should also examine performance metrics and ensure a balance of financial and non-financial metrics are used.
3) Engaging and enabling top talent is critical for companies to achieve higher ROI. Companies that engage and enable employees outperform peers on financial metrics. Changing systems and processes to remove barriers is important to allow employees to succeed.
Executive compensation consists of salary, bonus, long-term incentives, and perquisites. Salary makes up 40-60% of compensation but is subject to taxes, while bonuses and stock options are incentives. Perquisites include benefits like cars, clubs, and first-class travel. Compensation also includes retirement benefits, health insurance, and vacations. Unique features of executive pay include secrecy, varying amounts between executives, and tying pay to organizational performance. Companies use various strategies like cost-to-company packages, performance-linked payments, and flexible benefits to motivate and retain executives.
This document provides an overview of components of compensation packages including fringe benefits, incentives, and retirement benefits. It focuses on fringe benefits and incentives. Fringe benefits are forms of remuneration not directly related to tasks but can include things like company cars, health insurance, bonuses, etc. Incentives aim to motivate performance and can be individual-based like bonuses or group-based. Common incentive plans include Halsey, Halsey-Weir, and Rowan plans which provide bonuses based on time saved against standards. Group incentives link pay to team performance but can weaken individual effort relationships. Proper incentive design considers targets, funding, and fair reward allocation.
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.
A payment system is any system used to settle financial transactions through the transfer of monetary value. Common payment systems include operational networks that link bank accounts to enable monetary exchange using bank deposits. There are several types of pay schemes such as individual, profit sharing, and group based schemes. Performance pay can include merit pay, incentive pay, profit sharing, and performance bonuses. While pay systems aim to improve employee performance and retention, they can also lead to problems like reduced satisfaction and increased competition between employees if not implemented properly.
Compensation management is an integral part of managing an organization and involves designing total compensation packages for employees. It aims to assist with recruitment, job performance, and satisfaction through monetary and non-monetary benefits. Compensation includes basic wages or salaries as well as other components like dearness allowance, incentives, bonuses, commissions, benefits, and profit sharing. Effective compensation management contributes to an organization's success by attracting and retaining quality employees while managing costs. It is important for managers to appreciate the value of competitive pay and investing in human resources.
The document discusses reward policy and practices from 2010-2020 based on a confidential HR presentation. It notes that few organizations have clearly defined reward policies and strategic thinking on rewards is often considered a waste of time. It provides an overview of reward practices in the US and UK, including that only 30-35% of organizations systematically evaluate jobs, conduct pay audits, or have written reward strategies. The document outlines major reward trends that may occur from 2010-2020 such as increased focus on performance-based rewards, recognition, and aligning rewards with business strategy and employee needs. It also discusses challenges around global talent shortages and retaining top performers.
Compensation and Benefits Daily Advisor media kitJustin Terribile
Media Kit for BLR's Compensation and Benefits media network of HR, Compensation, and Benefits professionals. Gain access to our network of over 200,000 HR, Compensation and Benefits decision makers on a daily basis.
We offer a variety of advertising opportunities including:
• Website banner and textual ad placements
• Email Newsletter Banner Advertising & Sponsorships
• White paper sponsorships
• Live Event Sponsorships
• Cost Per Lead (CPL) campaigns
• Webinars
The document discusses executive compensation, including its purposes and typical elements. It aims to attract, retain, and motivate executives. Compensation usually includes salary, bonuses, stock options, and benefits. Critics argue CEO pay has increased much more than average workers' pay, with CEOs now earning 263 times a typical worker versus only 8 times in the 1950s. Questions are raised around using peer benchmarks and whether the government should regulate compensation. Performance-based pay may better motivate executives if tied closely to firm performance.
The document discusses strategic enterprise management and how to align corporate objectives and human capital. It introduces using a balanced scorecard approach and competency models to integrate performance management, compensation, and talent development processes. This would help organizations effectively implement business strategies and leverage human capital contributions.
The changing face of reward examines how the business drivers of reward are changing due to the impact of the global downturn and other macroeconomic trends in the global economy.
This document summarizes recent trends in compensation and reward management in India's public banking sector. It discusses that while public sector banks offer greater job security, salaries tend to be lower than private banks. To address concerns over lower salaries leading to attrition, the government is planning to introduce performance-linked incentives for employees. This would allow banks to earmark over 1% of net profits for incentives if targets for areas like loan growth and reducing non-performing assets are met. Other trends discussed include proposed increases to retirement age and the variable pay component of employee packages.
The document discusses compensation and benefits practices at various organizations. It provides an overview of compensation systems, including direct and indirect components. It also covers the needs for compensation, designing equitable compensation considering internal and external equity, and linking pay to performance. The document concludes by giving examples of compensation and benefits plans of companies like Google, Procter & Gamble, Apollo Hospitals, and Wipro.
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 discusses trends in compensation management. It reviews new trends, common compensation offerings, and the future of compensation. Understanding compensation is key to understanding compensation management. Compensation policies are driven by a company's philosophy of how best to compensate employees. Compensation management aims to compensate employees for their services through payments like salaries and benefits. Emerging trends include evaluating market competitiveness, emphasizing total rewards statements, linking compensation to strategic goals, and refocusing on pay-for-performance. Compensation packages are also expanding to include perks focusing on work-life balance, wellness initiatives, incentive-based pay, and flexibility.
This document discusses employee compensation and its components. It covers direct financial payments like wages and salaries which can be time-based or performance-based. It also discusses indirect financial payments like benefits. Several factors determine compensation plan design including strategy, equity, legal and union considerations. Compensation must be aligned with business strategy and attract behaviors needed to achieve strategic goals. Equity in compensation must also be maintained both internally and externally. Laws also regulate minimum wages, overtime, benefits and prohibit discrimination.
Role of compensation in organization - compensation management - Manu Melwi...manumelwin
Compensation is fundamental to organization formation and its existence. People work to earn their living and organization compensates employees by providing monetary and non monetary benefits and other amenities for producing goods and services.
The document discusses concepts related to compensation and reward management including pay models, internal equity, external equity, and employee equity. It covers forms of compensation including base pay, incentives, and cost of living adjustments. Key aspects of designing pay structures are also outlined such as determining pay level policies by leading, meeting, or following competition. Methods for evaluating jobs like ranking, classification, factor comparison, and point plans are explained. The importance of conducting pay surveys and using the data to construct policy lines and design pay ranges is also highlighted.
This document discusses compensation planning and administration. It defines compensation as what employees receive in exchange for their services, which can include base pay, variable pay, and benefits. The objectives of compensation planning are to ensure fairness, attract and retain talent, and reward desired behaviors. Base compensation includes wages and salaries, while supplementary compensation includes incentive payments based on performance. Effective compensation administration establishes equitable pay scales and controls costs while attracting qualified employees and complying with legal regulations.
The Role of Compensation Management in an Organization'Yinka Akinnubi
Compensation refers to monetary payments and rewards provided to employees in exchange for work. It aims to attract, retain, and motivate talent while balancing company interests. Compensation includes direct wages, salaries, incentives, and bonuses. It is a key human resources function that supports performance and talent management. Effective compensation systems consider equity, motivation, and performance appraisals.
Compensation plays a key role in organizations by attracting capable employees, motivating superior performance, and retaining employees over an extended period of time. It helps create a strong human resource base that enhances productivity, efficiency, and quality. A suitable compensation plan is critical for achieving the right human resource infrastructure with skilled employees in the right jobs. Compensation also plays an important role in retaining top talent, motivating employees to maintain high standards, and boosting morale to achieve goals.
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.
This document provides an overview of the course BUS5033W Reward Management and Talent Retention. The course aims to provide students with knowledge of strategic compensation practices to help organizations gain a competitive advantage. It covers topics such as compensation systems, total rewards approaches, developing reward strategies, and talent retention strategies. The course content is divided into modules that address compensation management, fair discrimination practices, and talent retention strategies.
The document discusses strategic reward systems for employees. It states that effective reward systems address compensation, benefits, recognition, and appreciation, and are aligned with business strategies and goals. It emphasizes that reward systems should recognize both performance and behaviors. Performance is easier to address through goals and incentives, while rewarding specific behaviors requires identifying the behaviors important to the company. An effective strategic reward system considers all elements, drives the right behaviors and goals, and does not neglect recognition and appreciation.
This document provides information about iSolutions, a human resources consulting firm. It discusses major trends impacting businesses today such as healthcare costs, outsourcing, and an aging workforce. It emphasizes the importance of attracting, engaging, and retaining employees to align them with business goals. The document outlines iSolutions' services including training and development, performance management, and employee and labor relations. It highlights the firm's experience and accomplishments in reducing costs and improving performance for its clients.
This document provides an overview of a two-day training program on remuneration strategy and salary structuring. The training will cover topics such as introduction to rewards management, building a salary structure, variable pay schemes, and alternative remuneration structures. It includes an agenda with sections on strategic total rewards management, attracting and retaining top talent through rewards, and measuring the effectiveness of rewards programs. The goal is to help organizations design competitive and aligned remuneration packages.
Compensation management involves designing total compensation packages to attract, motivate and retain employees. It includes direct pay like salary as well as indirect benefits. Compensation aims to achieve business goals while meeting legal requirements. Factors like an employee's role, market pay and organizational needs determine compensation. Common elements are basic pay, incentives, and statutory benefits. Recent trends include stock ownership plans and long-term incentive programs.
Reward management aims to reward employees fairly based on their value and contributions. It involves analyzing compensation strategies to ensure pay and benefits are equitable. Reward management considers both financial rewards like pay raises as well as non-financial rewards like recognition or increased responsibilities. The goal is to motivate employees and link rewards to business goals and strategies. There are two main types of rewards - intrinsic rewards that provide personal satisfaction, and extrinsic rewards like bonuses that are meant to incentivize performance and productivity. An effective reward system supports business objectives, recruits and retains talent, and motivates employees while complying with legal standards.
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.
The document discusses the case for using non-cash rewards over cash rewards for employees. It argues that non-cash rewards are more memorable for employees and allow them to feel recognition. While cash is considered the top incentive, employees report feeling better after receiving non-cash gifts. Non-cash rewards are also becoming more popular as they are cost-effective for companies and can help improve employee retention and productivity.
The document discusses compensation management at Packages Private Limited. It outlines Packages' compensation system which includes establishing pay rates based on factors like market rates and job evaluations. The compensation package consists of base pay, incentives, and benefits. Packages aims to attract and retain talent through an equitable compensation system tied to performance and contributions.
The document discusses strategies for paying and incentivizing top talent. It provides guidance on developing a strategic plan to align rewards with business goals. Some key elements include setting organizational vision and values, assessing internal and external factors, and linking individual performance plans to company-wide balanced business objectives. The document also outlines various compensation, benefits, and incentive principles and strategies to attract, motivate and retain top performers.
Maintaining Effective Workforce Partnership with Workforceminnoo
The document discusses maintaining an effective workforce. It covers several topics related to maintaining employees, including compensation, benefits, wages and salaries, and termination. The key points are:
1) Maintaining current employees involves compensation such as wages, salaries, benefits and occasional terminations. Compensation packages include both monetary and non-monetary rewards.
2) Effective compensation considers factors like internal pay equity, job evaluation, and compensation structures that fit company strategies. Benefits beyond wages are also important for attracting and retaining talent.
3) Termination policies allow dismissing poor performers while exit interviews provide feedback. Non-financial rewards like flexible schedules and meaningful work are also important aspects of maintaining an engaged workforce.
Compensation management involves designing total compensation packages to attract, motivate and retain employees. It includes direct monetary compensation like salary and incentives, as well as indirect compensation like benefits. Compensation objectives are to recruit and retain talent, boost morale and performance, and ensure legal and internal pay equity. Various factors like an employee's role, skills, market pay and organizational budget affect compensation. Common components of compensation include salary, bonuses, statutory benefits, and stock ownership plans.
The Role of Rewards in the “New Age” of Employee Empowerment. So where does compensation fit in this new engagement environment? Does it play any role? Some analysis suggests its impact is minimal. Other studies indicate it is a larger factor. To the extent attrition can be considered the antithesis of engagement, one might be confused by what seems to be conflicting data analyses among researchers regarding the influence compensation has on this much sought after quality in employees. If these are questions you are trying to answer, you should not miss this presentation.
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.
How to Determine if Your Pay Strategy Needs Professional Help. Compensation planning is not your core competency. Leading a business is. So is it time to stop putting your pay investment at risk and getting experts involved? In this presentation, we’ll show you seven ways you can tell.
View a recording of the presentation: https://www.vladvisors.com/compensation-knowledge-center/webinars/7-signs-you-need-a-compensation-consultant
Payroll systems that determine compensation are an important part of business strategy, though debates continue on the best ways to reward employee performance. Objectives of compensation include attracting good employees and recognizing individual ability and effort, while being influenced by management philosophy, market forces, and regulations. Compensation includes direct payments as well as benefits like medical aid and pension that together form an employee's total compensation package.
Building a Meaningful Compensation Strategy for Today’s WorkforceHUB International
Download the eBook from HUB and learn key strategies to ensure your employee compensation plans continue to support your organizational goals as talent acquisition and retention challenges grow.
2. Learning outcomes
2
To understand and be able to explain the following:
The definition, nature and context of reward
The content and objectives of the reward
relationship
The theoretical context to reward
3. What is Reward Management?
4
Reward management is an umbrella term covering:-
design, implementation, maintenance, communication
and evolution of reward processes which help
organizations to improve performance and achieve
their objectives.
(Armstrong and Murlis, 1994)
Two questions:-
How much should be paid (rewarded) to each
employee?
What form should the payment (reward) take ?
4. Dimensions of reward
5
Reward 3-dimensional
External:-
Market (labor pools/skills shortages)
legal requirements - min wage, equal pay
Company’s reward strategy
governed by dimensions:
strategy positioned according
to actual behavior and
corporate values on relative
importance of dimensions
Individual:- Internal:-
performance job evaluation
competencies negotiation
teams corporate performance
5. The content of reward management
6
Direct financial reward in the form of base pay
and incentives/allowances.
Indirect financial reward in the form of
employee benefits and conditions.
Non-financial reward in the form of job
satisfaction, career development and good
working environment.
Reward strategy takes a holistic approach to
these three areas.
6. Types of reward
7
Group related
Security driven Tradition driven
Lifetime jobs
Non-money related
Cost of living increases
Money related
Corporate prestige Perks
Employability driven Contribution driven
Training & development Performance pay
Personal career plans Merit bonuses
Individual related
7. Objectives of reward strategy
8
Congruence with corporate values and beliefs
Linked to business strategy
Drive and support behavior at all levels
Fit desired management style
Provide a competitive edge in HR terms
Reflect market realities (Armstrong 2002)
9. From backroom to boardroom?
10
In the past, pay and benefit administration largely
governed by the outcomes of collective bargaining. A
backroom function.
Today, the management of reward is increasingly
seen as a key HR function linked to the strategic
objectives of the employer.
10. The context of reward in the 21st century
11
Increasing global competition
Trend to lower levels of trade union membership
and less collective bargaining and pay regulation
Increasingly individual employment relationship
Changes in the psychological contract at work -
more insecurity and uncertainty
Differing views of what‘Reward’is
11. Key trends since the 1990s
12
Growing inequality in pay - incomes of higher paid
have increased much faster than the lower paid.
Growth in financial participation schemes
Growth in regulation of reward - particularly in
Equal Pay and Hours and Holidays, minimum wage,
increasing casual and part-time workers protection.
12. The New Pay Philosophy
13
New Pay ideas originate in USA (Lawler; Schuster
and Zingheim; Gomez-Mejia; Mahoney)
Influenced by HRM literature - new pay based on
concept that management of people must be
strategically focused.
Prescriptive or descriptive?
13. The New Pay Philosophy
14
Change to pay systems which are contingent on
business strategy and circumstances
Trend away from ‘job related’ pay to ‘person
related’ pay.
Shift away from stable, seniority based systems to
more variable and ‘at risk’ pay.
Move away from fixed benefits to flexible
(cafeteria) benefits
14. Traditional vs New pay
15
Traditonal pay New pay
Focus External constraints Business needs
Fairness
Objectives Recompense for time Enhancement of
given up loyalty and commitment
Determination Collective bargaining Management
Approach Evolutionary, ad hoc Rational, strategic
Basis Job based Person based
Time based Performance based
Demarcations? Diff conds for diff groups Harmonisation
Wage and salary based All salary based
Many grades Few grades
Flexibility? Fixed benefits Flexible benefits
15. Reward systems - the major components
16
1. What are the objectives of the reward system?
2. What is the corporate strategy that provides the
foundation of the system?
3. What techniques are used to link strategy and
objectives.
4. The four main strategy areas are: 1) internal 2)
external 3) rewarding employee contribution and
4) administration.
(Milkovitch and Newman 2002)
16. Looking at Old Issues in a New Way
Best Practise vs. Best Fit (Schuster and Zingheim, 2002; Brown and Christie, 2005)
All encompassing offerings are seen as Best Practise
Focus should be on best fit for the organisation AND its employees
Employer - Understand Yourself
Organisations need to understand what they need to succeed
Employer - Understand Your Employees
True performance success is gained through employee involvement
and seeking the employee’s direct voice (Walton ,1985; Lawler, 1986)
HR can assist by bridging the gap, by understanding the business AND
becoming an employee advocate so as to understand the employees
(Legge, 1999)
Rewards can then become that which meets the needs of both
Rewards becomes more than Total Rewards, it becomes a Total
Relationship approach (Schuster and Zigheim, 2000)
17. Reward Elements Examples
Reward Elements: Work Experience Elements:
Basic Salary
Company Bonus Opportunities for career advancement
Personal Bonus Job-orientated training
Profit Sharing
Stock or Share Options Other training available
Sales Incentives/Commission Performance appraisal
Long Term Incentives
Private Medical Cover Merit pay increases
Private Dental Cover Opportunities for job enhancement
Private Vision Cover
Health Screens/Physicals Employer is ‘people’-focussed
Defined Benefit Pension Positive leadership
Defined Contribution Pension
Supportive management
Critical Illness Cover
Life Insurance Positive colleague interactions
Recognition Scheme Great work
Long Service Awards
Company Car or Allowance Work/life balance
Petrol Allowance Flexible working practices
Mobile Phone
On-site Crèche You feel ‘involved’
Childcare Vouchers You trust your employer
On-site Cafeteria
On-Site Coffee Bar Your employer trusts you
Luncheon Vouchers Open and honest communications
On-Site Life style/Concierge
Tube or rail pass benefits Stakeholdership
On-site or discounted parking Company is growing
Wellness Programmes
On-site or discounted Gym membership Company is successful
Shopping Discounts Company has a positive image
Employee Assistance Programme
Salary sacrifice Bicycle purchase
Company has a positive reputation
Company has a clear vision
Company has a clear set of values
(Source: Schuster and Zigheim 2000)
18. References
20
Perkins, S. & White, G. (2010) Employee Reward:
Alternatives, Consequences and Contexts.
CIPD: London
Thorpe, R. & Homan, G. (2009) Strategic Reward
Systems.
Prentice Hall: London
White, G. & Druker, J. (2009) Reward Management: a
Critical Text.
Routledge: London
Editor's Notes
This is a general introduction to the concept of compensation and benefits, but using the more broad term ‘ reward ’ as mentioned in the guidance.
Learning outcomes
Reward is one of many aspects of management that you have probably covered in your Masters degree. So why do we study these varied aspects of management? By studying these varied aspects of management, we hear about various theories of how various stakeholders act. By studying these organizational and management theories we obtain a greater sense of what works and what doesn ’ t, without having to go through the research ourselves. So theories of management provide ‘ short cuts ’ on how to understand the workplace.
Reward management is an umbrella term covering the many steps in the process of implementing compensation and benefits strategy. As a rule there are two main questions that need to be addressed.
Reward is 3 dimensional in that it is affected by external aspects, individuals, and internal aspects. A company ’ s reward strategy will take these into consideration, and will make an assessment of how important each is to the success of the organisation. For example, if the organization requires highly skilled workers and there is a skills shortage of available workers, reward strategy may be affected in regards to higher wages to attract scarce talent. Strategy is a mix of the behaviors of these dimensions and how important they are to the organization.
There are 3 key areas of reward: direct financial, indirect financial and non-financial. Each organization needs to holistically assess the mix of these three areas to ensure success of corporate goals.
Rewards are varied – they fit on two continuums: non-money to money related and group related to individually related.
The objectives of the strategy have to fit the organizational ‘ style ’ and objectives, reward the right behaviors, ensure attraction and retention of needed talent in reference to the market (industry norms and availability of talent in labor market).
Said in another way – Reward Strategy is determined by the culture of the organization, what behaviors it wants to reward, the economic environment externally and within the company, the legal constraints, the political context (are unions involved), and does the strategy fit in with social norms or even support external social issues?
Traditionally, pay and benefits were more collective, in that unions negotiated terms of employment. With the emergence of HRM, reward is now more strategic and managed internally through HR or a Reward Manager. The modern issue with this, is that unions were more employee focussed advocates, whereas it is argued that HR is too much of a corporate function to be a true employee advocate.
Reward is transitional in that the workplace is changing. Global competition has made the labor market and global one – especially for high skilled and professional workers. Reward is increasingly negotiated by individuals not collectively; unions less involved. The psychological contract has become more insecure and uncertain – workers are motivated by varied individual choices – so how do employers address these varied desires? Even the definition of what is a reward is changing – workers may make decisions based on non-traditional rewards such as career development or training opportunities.
Some key trends – pay is becoming less equal in regards to pay at the top is inflated while pay at the lower levels is too low. Growth in bonus, profit sharing and stock incentive schemes. Growing government interventions through regulations which influence pay.
There is an emerging theme of ‘ New Pay ’ from the US which is influenced by the need to create a strategy of how people are paid. However, how does this fit with the need to address individuals? So there is this growing tug of war between having a set strategy for all employees, with the need to address individuals who may dictate their own terms due to high skills or shortage of skills in the market. Who wins? And how do you create strategy based on this?
Aspects covered under this new philosophy include pay systems which only pay out if certain goals are met, become focussed on person-related pay and the skills that person has, there is less focus on seniority and more pay is available through increased performance and bonus achievement, a move away from a set offering to a set of choices.
A comparison of traditional pay systems versus the new pay philosophy.
The major components address: what are the objectives of reward (performance?/compliance?); what drives the system (a desire to be employer of choice?/quality?/efficiency?); how is it implemented (higher pay vs. lower pay/higher bonus potential); how does it fit internally, in comparison to the external market, how does it reward employee contribution, and how is it administered through HR or management?
The big debate in HR/Reward is: Do you create a strategy which works uniquely for the organization OR Do you follow what other organizations are doing? Sometimes ‘ Best Fit ’ strategies are hard to sell to potential employees if they are very different to competitors. Sometimes ‘ Best Practice ’ at one organization does not work within the business or culture of another. Which is the best way?
Looking at it a new way…there is a growing message that Best Fit is the new Best Practice! Employers need to know their business and their employees – and HR/Reward managers bridge this for the organization by understanding the business and employees.
As a last example of how diverse reward is becoming…it is not just pay, benefits and a 401k!