Post on 05-Apr-2018
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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