Design Rewards That Truly Matter Slide-share
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An effective total rewards strategy requires deep understanding of what the CEO and employees really value. Read more to know experts' views on Total Rewards Designs that truly matter.
Transcript of Design Rewards That Truly Matter Slide-share
www.peoplematters.in
www.peoplematters.in
While featuring in the HR lexicon for over 10 years, there are widely divergent opinions in the community as to what constitutes total rewards. Organisations have differing compensation and benefits structures, operate under diverse management principles, and have different approaches to employment value positioning.
Design Rewardsthat truly matter
By Vikram Choudhury
www.peoplematters.in
By Vikram Choudhury
Checklist while assessing a total rewards strategy
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What the experts have to say…
““Research and experience suggest that the components of total rewards Research and experience suggest that the components of total rewards and the EVP are interdependent and compatible. Companies today face and the EVP are interdependent and compatible. Companies today face an inflection point relative to their total rewards programme and the most an inflection point relative to their total rewards programme and the most progressive are addressing the economic slowdown by recrafting their progressive are addressing the economic slowdown by recrafting their EVP, thus optimising their investments.”EVP, thus optimising their investments.”
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““Retention and reward are the two key reasons for employers to grant Retention and reward are the two key reasons for employers to grant stock options to employees. Almost all the companies (more than 90 per stock options to employees. Almost all the companies (more than 90 per cent), who grant stock options, feel that the retention objective is cent), who grant stock options, feel that the retention objective is achieved. What is left unsaid is if the employees have realised the cash achieved. What is left unsaid is if the employees have realised the cash from the perceived ESOP gains.”from the perceived ESOP gains.”
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““According to the large accounting firms, the Rs.5,000 annual tax According to the large accounting firms, the Rs.5,000 annual tax exemption amount is only for organisation wide non-distinguishedexemption amount is only for organisation wide non-distinguishedawards (for example, Diwali gifts for all employees, New year gifts for all awards (for example, Diwali gifts for all employees, New year gifts for all employees). Any other award based on performance or milestones that employees). Any other award based on performance or milestones that are given to individuals, need to be taxed and do not fall under thisare given to individuals, need to be taxed and do not fall under thisRs.5,000 limit.”Rs.5,000 limit.”
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““Another fundamental change, which has emerged as a strong Another fundamental change, which has emerged as a strong supplement to the increasing role of R&R in driving performancesupplement to the increasing role of R&R in driving performancebased milestones, is the shape and structure of the rewards catalog. based milestones, is the shape and structure of the rewards catalog. Emerging trends in industry practices indicate that the dynamicsEmerging trends in industry practices indicate that the dynamicshave now shifted more towards experiences that translate into have now shifted more towards experiences that translate into memories. The enhanced impact created by the experiential naturememories. The enhanced impact created by the experiential natureof rewards has made adoption of these metric and performance based of rewards has made adoption of these metric and performance based schemes much easier and faster.”schemes much easier and faster.”
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““Employers are choosing from a bouquet of employee benefit offerings Employers are choosing from a bouquet of employee benefit offerings such as life insurance, profit sharing, employee stock ownership plans, such as life insurance, profit sharing, employee stock ownership plans, healthcare facilities, both, curative and preventive, meal benefits andhealthcare facilities, both, curative and preventive, meal benefits andchild care availability amongst others. Going forward, the focus seems to child care availability amongst others. Going forward, the focus seems to be changing in this space, more towards flexi-plans, employee and be changing in this space, more towards flexi-plans, employee and family welfare and focus on protecting and preserving income..”family welfare and focus on protecting and preserving income..”
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““A large part of employee attrition is attributed to lack of recognition in A large part of employee attrition is attributed to lack of recognition in workplace. Though many leaders pursue recognition strategies, there isworkplace. Though many leaders pursue recognition strategies, there isstill a high degree of dependency on the immediate manager to execute still a high degree of dependency on the immediate manager to execute towards building such a culture. There is thereby emerging popularity fortowards building such a culture. There is thereby emerging popularity fortechnology led social recognition programmes, which drive uniform and technology led social recognition programmes, which drive uniform and syndicated usage, eliminate “favoritism” and yield high excitementsyndicated usage, eliminate “favoritism” and yield high excitementamong the workforce.”among the workforce.”
For Further Information Kindly Contact
+91 (124) [email protected]
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Supplement – February 2013
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