8522845 reward strategies

8/8/2019 8522845 Reward Strategies

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Reward Strategies


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Rewards

Saying thank you for a job well done,

and thereby motivating the recipient to

continue to do those things that benefitthe organization


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Rewards

Extrinsic Intrinsic

Responsibility

Interesting work

Personal growthDiversity of

activities

FinancialNon-

Financial


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1: EXTRINSIC FINANCIAL

REWARDS

Wages

Bonuses Profit-sharing

Vacations

Sick leave Purchase discounts


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2. EXTRINSIC NON-FINANCIAL

REWARDS Office furnishings

Lunch hours

Parking spaces

Work assignments,

locations

Business cards Secretary

Titles


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REWARD

STRATEGY


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LAWLERS MODEL OF REWARD

STRATEGYRESOURCES

ENVIRONMENT

CORPORATEGOALS &

OBJECTIVES

ORGANIZATION

DESIGN

&MANAGEMENT

STYLE

REWARDSYSTEM

INDIVIDUAL &

ORGANIZATIONALBEHAVIUOR

Reward systemAn important means of

communication


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RELATIONSHIP BETWEEN HR & REWARD

PRACTICES & BUSINESS PERFORMANCE

JOB

SATISFACTION

EMPLOYEE

INVOLVEMENT /

COMMUNICATION

BUSINESS

PERFORMANCE

HR PRACTICES


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ALIGNING REWARD SYSTEM WITH

STRATEGYBUSINESS

STRATEGY

PEOPLE

REQUIREMENT

PREVIOUS

REWARD

METHODS

CHANGES

TO

REWARDS


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EFFECTIVE REWARD STRATEGY

EFFECTIVE

REWARD

STRATEGY

WELL

DEFINED

GOALS &

OBJECTIVES

WELL DESIGNED

PAY & REWARD

PROGRAMMES

ACCORDING TO THENEEDS

EFFECTIVE &

SUPPORTIVE

HR


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BALANCED, PRACTICAL REWARD

STRATEGY MODEL

ORGANIZATION

CAPABILITIES

BUSINESS

STRATEGY

ORGANIZATION

STRUCTURE

EMPLOYMENT

DEAL

COMPETENCIES

DEMOGRAPHICS

VALUES

TOTAL REWARD STRATEGY

PAY BENEFITS

LEARNING &

DEVELOPMENT

WORK

ENVIRONMENT

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 entitlementstrongly related to the length ofservice

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

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 additional

pay 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 out

Flexible Holidays

Flexible 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

8522845 reward strategies

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