Total Rewards Strategies

Total Reward Strategy Process

1. Assessment 2. Design 3. Implementation 4. EvaluationAs

Pay Transparency Disadvantages

1. Can lead to jealousy and performance problems - perceived unfair 2. Poses a risk of the information may be used for inappropriate or unintended purposes 3. Requires protection of employee privacy and proprietary information 4. Raises individual and cultural concerns about fairness in the global environment

Metrics used to evaluate Total Rewards Strategy

1. Cost of benefits 2. Total payroll as a percentage of total organizational cost 3. time to fill data for open positions 5. Retention and voluntary turnover rates when exiting employees have indicated a rewards-oriented reason for leaving.

Global Influences on Total Rewards

1. Standardization versus localization 2. Culture 3. Competitive labor market 4. Collective bargaining, employee representation, government mandates 5. Economic Factors 6. Taxation

pay transparency Advantages

1. Supports the achievement of strategic business objectives 2. Reduces conflicts among employees and between employees and management regarding pay

Total Rewards Communication Factors

1. Type of information 2. Communication plans 3. Direct Communication 4. Individualized total compensation statements 5. Self-Service Technologies 6. Consistent Key Messages - across all locations Starts with an overarching strategy and standard Implementation guidelines but adaptable to organizational specifications and local conditions and norms.

SHRM - Compensation Philosophy should have

1.Is the overall program equitable? 2. Is the overall program defensible and perceived by employees as fair? 3. Is the overall program fiscally sensitive? 4. Is the compensation philosophy legally compliant? 5. Can the organization effectively communicate the philosophy to employees and prospective candidates? 6. Are the programs the organization offers fair, competitive, and in line with the compensation philosophy and policies?

importance of total rewards strategy communication

1.educating employees about practices, 2. achieving employee buy-in/making them aware of the overall value, 3. supporting the org's strategic objectives and 4. supporting the org's goals for performance management Key - A total rewards program is a powerful motivator when it is understood and accepted by employees

FMLA Requirements non farm jobs

16 years old

Mediation

A method of settling disputes outside of court by using the services of a neutral third party, called a mediator. The mediator acts as a communicating agent between the parties and suggests ways in which the parties can resolve their dispute. Structure Introductions, Fact-finding Options Negotiating

pay transparency

A policy of disclosing pay-related information. This includes information about the pay system as well as individual pay received.

Compensation philosophy

A short but broad statement documenting an organization's guiding principles and core values about employee compensation. Ideally developed prior to the development of the total rewards system The Why behind employee pay A framework for consistency and transparency A well-designed compensation philosophy supports the organization's strategic plan and initiatives, business goals, competitive outlook. Philosophy should be : Equitable defensible perceived as fiar fiscally sensitive legally compliant Easy to communicate Programs offered should be Fair competitive Aligned to philosophy and policies

Total Reward Strategy Process

Assessment Design Implementation Evaluation

Objectives of a Total Rewards Strategy

Compatible with the organization's mission and strategy Compatible with the organizational culture - Entitlement- oriented vs contribution-oriented Appropriate for the workforce Internally and externally equitable

Perquisites

Compensation provided on an individual basis in the form of goods or services. Examples of perquisites include automobiles and mobile devices

Evaluation

Does the system achieve it's goals? 1. Is the system in compliance? 2. Is the system strategy compatible with the organization's mission and strategy? 3. does the system strategy fit the culture? Is it appropriate for the workforce? 4. Is the system strategy internally equitable? 5. Is the system strategy externally competitive?

Legal Compliance complexities

Due Diligence should include and understanding of relevant !. international standards and regulations 2. Extraterritorial application of national law 3. Application of national laws to international-owned subsidiaries operating within a nation's borders

Glass Ceiling Barriers

Governmental Internal Social

Implementation

HR implements and circulate materials that communicate the new strategy to employees. Implementation needs to support LONG-TERM goals to ensure a sustainable business model

Assessment

HR professional evaluates the current compensation and benefits systems and the effectiveness of those systems in helping the organization reach its goals. Survey tool typically used Assessment report should answer 1. Who should be eligible for the rewards? 2. What kinds of behaviors or values are to be rewarded? 3. What types of total rewards will work best? 4. How will the organization fund the new system?

Design

Identify and analyses various reward strategies to determine what would apply best in their workplace. Decisions are made.. not only includes pay but identify additional benefits such as flex work schedule, additional time off,,, etc for employees who meet the established organizational goals and objectives

Evaluation of a Total Rewards Strategy

In Compliance compatible with the organization's mission and strategy A fill with the organization's culture and appropriate for the workforce Internally equitable Externally competitive

Who should be on the committee to develop a Total Rewards Strategy?

Large scale HR Infinitive - buy in from Senior leadership - department representatives the strategy should be well-rounded and represent all of the employees.

Direct Compensation

Pay that is received by an employee, including base pay, differential pay, and incentive pay

Incentives or premiums

Payments in return for the achievement of specific, time-limited, targeted objectives. These are calculated as a percentage of the salary. Payment may be made in a lump sum or be on going.

Compensation

Refers to all other financial returns including salary and allowances

Benefits

Tangible payments or Services provided to broad groups of employees to cover issues such as retirement, health care, sick pay/disability schemes, life insurance, and paid time off. In addition to those required by law. Internal and external training and development that employees receive is also considered a benefit.

Total rewards strategy

combines not only compensation and benefits with personal growth inside a supportive work environment. It uses limited resources to get the right talent and to comply with the organization's values culture and local laws

Indirect Compensation

employee benefits and recognition programs provided as a form of compensation

Total Rewards

encompass not only compensation and benefits, but also personal and professional growth opportunities and a motivating work environment that includes recognition, job design, and work-life balance Total rewards encompass all the direct and indirect remuneration approaches that employers use to attract, recognize and retain workers Total reward refers to all forms of financial rewards that employees receive from their employers.

FLMA for covering service member

wh385

Pay Strategies

• Compares an organization to other organizations that share its industry, occupation, or location • Organizations may decide to: Lag-Match- Lead