Post on 19-Jan-2015
description
September 2014
REWARD AND COMPENSATION
Slide 2
3 Introduction 4-5 Definitions 6-7 The reward lifecycle 8-9 Determining base pay and total earnings 10-11 End goals of reward 12-13 Reasons for joining an organization 14-15 Competitive market and positioning 16-17 Engaging stakeholders in the process 18-19 Reasons to offer non-financial rewards 20-22 Attendance reward programs 23-24 Pay for performance 25-26 Linking effective reward to performance 27-28 Stock options 29-30 Total reward 31-32 Linking behaviour and performance 33-34 Outcomes when adopting reward technology 35-37 The optimal reward process 38-39 Implementation of the optimal reward process 40-44 A typical sales compensation report card 45-46 Wage mobility for foreign-born workers 47-48 Reward initiatives to retain top talent 49-50 Trends around reward 51 Summary and questions
Agenda
Toronto Training & HR Inc. is a specialist training and human resources consultancy headed by Timothy Holden
10 years in banking15 years in training and human
resourcesFreelance practitioner since 2006
The core services provided by Toronto Training & HR are:
Training event designTraining event deliveryHR support with an emphasis on
reducing costs, saving time plus improving employee engagement and morale
Assistance for job seekers
Introduction to Toronto Training and Human Resources Inc.
Slide 3
DEFINITIONS
Slide 4
RewardBase or fixed payTotal earnings
Definitions
Slide 5
THE REWARD LIFECYCLE
Slide 6
Market analysisProgram designAdministrationAnalysis and refinement
The reward lifecycle
Slide 7
DETERMINING BASE PAY AND TOTAL EARNINGS
Slide 8
Pay structuresPay levelsPay awardsPay progressionVariable pay; cash bonuses and incentives
Determining base pay and total earnings
Slide 9
END GOALS OF REWARD
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Make the right offersKeep people engaged and motivatedDrive the behaviours that drive valueRetainInvest wisely
End goals of reward
Slide 11
REASONS FOR JOINING AN ORGANIZATION
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EmployeesEmployers
Reasons for joining an organization
Slide 13
COMPETITIVE MARKET AND POSITIONING
Slide 14
Definitions for your competitive setRecommendations for your competitive positioningSalary structure
Competitive market and positioning
Slide 15
ENGAGING STAKEHOLDERS IN THE PROCESS
Slide 16
ExecutivesEmployees
Engaging stakeholders in the process
Slide 17
REASONS TO OFFER NON-FINANCIAL REWARDS
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Personal and career developmentFlexible workingInvolvement in decision-makingPositive working environmentPerformance managementRecognition
Reasons to offer non-financial rewards
Slide 19
ATTENDANCE REWARD PROGRAMS
Slide 20
Attendance reward programs 1 of 2
Slide 21
Attendance reward programs 2 of 2
Slide 22
PAY FOR PERFORMANCE
Slide 23
Components to include when creating a valid and legally defensible planElements to include in the development of a model for the distribution of merit pay increasesJust Noticeable Differences (JNDs)Steps for an effective pay-for-performance system
Pay for performance
Slide 24
LINKING EXECUTIVE REWARD TO PERFORMANCE
Slide 25
Current trendsIssues for HRResearchRationaleReaching out
Linking executive reward to performance
Slide 26
STOCK OPTIONS
Slide 27
Greater CEO riskReducing riskTheoretical perspectives
Stock options
Slide 28
TOTAL REWARD
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Foundational rewardsCareer and environmental rewardsPerformance-based rewards
Total reward
Slide 30
LINKING BEHAVIOUR AND PERFORMANCE
Slide 31
Total rewards and work experienceEmployee mindset and behaviourCustomer behaviourFinancial performance
Linking behaviour and performance
Slide 32
OUTCOMES WHEN ADOPTING REWARD TECHNOLOGY
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EfficiencyConsistencyVisibilityTransparencyTrust
Outcomes when adopting reward technology
Slide 34
THE OPTIMAL REWARD PROCESS
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Target pay levelsHow are targets set?Award and recognition programsWeight on base, weight on incentivesControllable, measurable and strategicThe hierarchy of performance measures
The optimal reward process 1 of 2
Slide 36
Typical sales incentive measuresHaving a threshold or no thresholdCapsCommunication
The optimal reward process 2 of 2
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IMPLEMENTATION OF THE OPTIMAL REWARD PROCESS
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Develop implementation planConfirm systems capabilitiesDevelop transition approachDevelop objective setting approach and set individual objectivesDevelop communication plan materialsDevelop and conduct trainingMeasure understanding, acceptance and success
Implementation of the optimal reward process
Slide 39
A TYPICAL SALES COMPENSATION REPORT CARD
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Sales characteristicsIndividual versus team influence on outcome of the salePercentage of current annual revenue that would repeat without the existence of this job roleDirect contact with the customer (in-person or by phone)
A typical sales compensation report card 1 of 4
Slide 41
Sales characteristics (cont.)Influence of the company or the job incumbent on the saleRole in the customer’s buying process
A typical sales compensation report card 2 of 4
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Alignment of compensation plan to job roles and sales strategyMotivation and recognition for top performanceMarket competitivenessPay mixMeasurement clarityTeaming and cross-selling
A typical sales compensation report card 3 of 4
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Mechanics and payment cyclesCompensation cost of salesGoal equity and achievabilityPlan management and administration
A typical sales compensation report card 4 of 4
Slide 44
WAGE MOBILITY FOR FOREIGN-BORN WORKERS
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Wage distribution of natives and immigrantsWage mobility by immigration statusWage mobility by years since migrationWage mobility by country of originWage mobility by education
Wage mobility for foreign-born workers
Slide 46
REWARD INITIATIVES TO RETAIN TOP TALENT
Slide 47
Spot cash awardsIndividual incentives for non-managementBroad-based equityTeam/small group incentivesCash profit sharingGainsharing plans
Reward initiatives to reward top talent
Slide 48
TRENDS AROUND REWARD
Slide 49
Base and variable pay policiesEmployee share schemes and long-term incentive plansEmployee benefitsPensions
Trends around reward
Slide 50
SUMMARY AND QUESTIONS
Slide 51