TotalReward - GSK BES
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Transcript of TotalReward - GSK BES
TOTAL REWARD GSK
Who is this man?
Lawlers modelResources
Corporate goals and objectives
Organisation design and management style
Reward system
Individual and organisational behaviour
Environment
Any Reward Strategy will express clearly the organisations intentions, and form the basis for communicating these intentions to employees
The TotalReward concept
GSK Total Reward Philosophy Total Reward makes the GSK Spirit an everyday reality for our peopleand is a major building block for achieving our mission. The principles have been developed to ensure that the interest of our employees is very closely aligned with that of GSK. Total Reward is a competitive package designed to attract, retain, motivate & develop the best talent. At the same time it is cost effective, benefiting GSK and the employee.
Total Reward PrinciplesGlobal principles, local country application Commitment to GSKs future Pay for performance Sharing success Value of whole package Beyond pay or benefits Alignment of employee and GSK interest
The Total Rewards Equation Commitment and engagement drive employee performance and results; rewards for performance create job satisfactionCommitment and Engagement causes Employee Performance which results in Employee Rewards which leads to Job Satisfaction
It goes wrong when:- we ask about satisfaction with programmes & miss relationship between reward and performance
- we define reward too narrowly- we get commitment to programmes without engagement
GSK Total Reward Pay Structures External Equity Pay levels
Internal Equity Pay differences Equitable pay structures
Size & Frequency of Merit Pay Performance rating
Factors affecting SalariesBusiness Drivers
SALARIESInternal & External factorsTotalReward Principles
Mechanisms for managing salaries Market pricing Salary ranges Other salary structure programmes
Salary review/performance review Department budgets
The deal at performance orientated companies:Pay Emphasis on rewarding results, not tenure Segmentation of key employee groups Shift from fixed to variable pay Use of stock or stock options to reflect individual and company performance Differences in deals based on employee contribution Learning & Development Reliance on array of tools to help employees make most of their careers Use of full-circle feedback and comprehensive performance management Emphasis on development, especially among key employees and future leaders
Benefits Greater portability Fewer links to age and service Emphasis on nontraditional benefits Focus on shared responsibility Designed to reflect life stages and provide maximum flexibility Use of cost-effective delivery mechanismsWork Environment Emphasis on committed leadership who articulate vision for success & plan to get there Consistent & regular communication about business & performance expectations Systematic measurement of culture and ongoing improvements Emphasis on line-of-sight involvement and rewards for performance Careful alignment of all people systems with company goals
TOTAL CASH
LIFESTYLE BENEFITS
SAVINGS CHOICES
Base salary
Variable bonus TOTAL CASH Shares Share Options Base salary LIFESTYLE BENEFITS Advice services Company Discount/Loans Post retiral medical benefits
Pay increase
Company carHoliday Homes
Recognition
Healthcare
SAVINGS CHOICES Retirement fund
TotalReward Myth is the same in every country is only for people with share options is a smiling face is base salary and bonus is a cafeteria system where employees can choose has been union negotiated
Truthcan include development is flexible supports the Spirit of GSK fits the GSK identity is a set of global principles includes total cash, savings and lifestyle benefits
TotalReward Myth is the latest fad has all the elements of it designed centrally gives a benefits valuation will solve all hiring needs
Truth is a brand is a framework is about employee retention values the whole package rewards success is an employee value proposition tailored to each country driven my market data
So TotalReward is..
A concept Global A set of principles A framework A brand
End