3099983 salary and compensation management presentationfinal

7/31/2019 3099983 Salary and Compensation Management Presentationfinal

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Reward Strategies By

saima aftab


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Rewards

Extrinsic Intrinsic

Responsibility Interesting work Personal growth Diversity of activities

FinancialNon-

Financial


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REWARD

STRATEGY


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LAWLERS MODEL OF REWARD

STRATEGYRESOURCES

ENVIRONMENT

CORPORATEGOALS &OBJECTIVES

ORGANIZATION DESIGN&MANAGEMENTSTYLE

REWARDSYSTEM

INDIVIDUAL &

ORGANIZATIONAL BEHAVIUOR

Reward system An important means of communication


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RELATIONSHIP BETWEEN HR & REWARDPRACTICES & BUSINESS PERFORMANCE

JOBSATISFACTION

EMPLOYEEINVOLVEMENT /

COMMUNICATION

BUSINESSPERFORMANCE

HR PRACTICES


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DYNAMIC REWARD STRATEGIES

DYNAMIC REWARDSTRATEGIES

RESPONSIBLE, DYNAMIC ANDFLEXIBLE HR

PROFESSIONALS


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ALIGNING REWARD SYSTEM WITH

STRATEGYBUSINESSSTRATEGY

PEOPLEREQUIREMENT

PREVIOUSREWARD

METHODS

CHANGESTO

REWARDS


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EFFECTIVE REWARD STRATEGY

EFFECTIVEREWARD

STRATEGY

WELL DEFINEDGOALS &

OBJECTIVES

WELL DESIGNEDPAY & REWARDPROGRAMMES

ACCORDING TO THENEEDS

EFFECTIVE &SUPPORTIVE

HR


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BALANCED, PRACTICAL REWARDSTRATEGY MODEL

ORGANIZATIONCAPABILITIES

BUSINESSSTRATEGY

ORGANIZATIONSTRUCTURE

EMPLOYMENTDEAL

COMPETENCIES

DEMOGRAPHICS

VALUESTOTAL REWARD STRATEGY

PAY BENEFITS

LEARNING &DEVELOPMENT

WORKENVIRONMENT

IMPOROVED BUSINESS RESULTS & ALIGNED EMPLOYEE BEHAVIOURS

EMPLOYERS

PERSPECTIVE

EMPLOYEES

PERSPECTIVE


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CONFLICTS

Focus on individual performance inteams

Lack of customer service rewards Lack of relationship between pay &performance

Absence of learning and development Pay levels and benefits entitlement

strongly related to the length of service

Lack of variable portion in pay


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PERFORMANCE RELATED PAY

Score card driven bonus

Customer satisfaction(customer survey)

Shareholder returns(profitability vs. targets)

Process excellence Learn n Grow


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Reward Policies


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Reward Policies

Reward Policies provide guidelines for the

implementation of reward strategies and the designand management of reward process.


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Considerations

The level of reward The relative importance attached to market

rates and equity Attraction and retention The relationship of rewards to business

performance Total reward policy


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Considerations

The scope for the use of contingent rewards related toperformance, competence, contribution or skills.

Assimilation policies The degree of flexibility required. The role of line managers. Involve employees in the design of reward systems Communicate the reward policies to employees Transparency.


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Level of Reward

Organizations philosophy about Rewards: High payer, Average , Below Average

Policy depends on a number of factors: Level of performance Competition for good quality people Tradition stance & organizational culture of the

company Affordability


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Market Rate and Equity

Policy needs to be formulated on the extent towhich rewards are market driven rather than

equitable. Obtain and keep high quality staff Response to market pressures

Market considerations will derive levels ofpay in the organization.


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Attraction policies

Career prospects

Training and development Intrinsic interest of the work Flexible working arrangements

Work life balance


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Retention policies

Capelli says market determines the movement ofemployees, not the company

Talent management (attraction and retention ofquality employees)

Talent management policies To attract employees To develop employees Retain employees Motivate employees


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Talent Management Policies

Talent Management Process:

Employer of Choice Recruitment procedures Designing jobs and roles Opportunities to develop skills Working environment


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Talent Management process

Work life balance Leadership qualities of line managers

Recognition Conducting talent audits


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Reward to Business Performance

Link between reward and business performance. Gain sharing

A commitment to employee involvement that ties additionalpay to improvements in workforce performance.

Profit sharing A plan under which an employer pays to eligible employees,

as an addition to their normal remuneration, additional sumsin the form of cash or shares in the company related to the

profits of the business.


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Total Rewards

The total reward policy should state thatalthough contingent rewards play an

important part in the reward policies of theorganization other forms of non financialreward are regarded as being equallyimportant


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Contingent Rewards

Pay for individual that is related to

performance, competence, contribution orservice.


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Assimilation Policies

How existing employees should beassimilated into revised pay structure.

Red circling (identifying and dealing withoverpaid people)

Green circling (identifying and dealing with

underpaid people)


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Flexibility

Flexing Company Cars Trading up

Trading down Trading outFlexible HolidaysFlexible Pensions

Flexible private medical Insurance


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Role of line Managers

Direct interaction with employees Trained


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Involving Employees

Employees should be given voice in thedesign and management of reward processes.


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Communication to Employees

Reward processes are powerful media forconveying messages to employees about the

organizations values and the contributionthey are expected to make in upholding thosevalues and achieving the organizations goals.


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Transparency

Reward process should not be secret activity. Pay progression

Lack of understanding breeds suspicion.


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THANKS

3099983 salary and compensation management presentationfinal

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