Chapter 11

Question 1

Total Employment Rewards

Answer 1

An integrated package of all rewards (monetary and non-monetary)

Question 2

Monetary

Answer 2

aka “extrinsic”

Compensation - cash, benefits

Question 3

Non-Monetary

Answer 3

aka “intrinsic”

Personal growth + interpersonal rewards

Question 4

5 Components of Total Rewards

Answer 4

1. Compensation (wages, salaries, incentives, bonuses, commissions)
2. Benefits (indirect payments: insurance, paid vacation, employee services)
3. Work-Life Programs (help employees do their jobs effectively; flexible sched, telecommuting, child care etc.)
4. Performance + Recognition (Pay-for-performance, recognition programs)
5. Development + career opportunities (tuition assistance, sabbaticals, professional development , mentoring)

Question 5

Basic considerations when determining pay rates

Answer 5

1. Legal (employment/labour standards act, pay equity act, Human rights, canada/quebec pension plan, other legislation)
2. Union influences (CA Agreements)
3. Compensation policies (of indiv. organizations)
4. Equity + Impact on pay rates

Question 6

Steps in evaluating pay rates

Answer 6

1. Job evaluation (systematic comparison of jobs in organization and determine relative worth - determine BENCHMARK job & compensable factors)
2. Conduct a Wage/Salary survey (comprehensive - determine prevailing wage rates)
3. Combine job eval + survey info (create wage curve + pay ranges)

Question 7

Compensable factors

Answer 7

Fundamental compensable element of a job - skill, effort, responsibility etc (shows difference to other jobs)

Question 8

Job evaluation methods

Answer 8

[Step 1 of evaluating pay rates]

1. Classification/grading method ( categorizing - groups are called CLASSES if they contain similar jobs or GRADES if the contain jobs that are similar in difficulty but otherwise different)
2. Point Method (compensable factors are identified - factor is determined to which job)

Question 9

Pay-grade

Answer 9

Comprises jobs of approximately equal value

Question 10

Broadbanding

Answer 10

Reducing number of salary grades + ranges

Adv: greater flexibility in employee compensation

Question 11

Pay for Knowledge

Answer 11

• Competency based pay (managers)

- Skill based pay (manufacturing)

Question 12

5 Elements to Compensating Executives + Managers

Answer 12

1. Salary
2. Benefits
3. Short-term incentives
4. Long-term incentives
5. Perquisites

• Market approach commonly used* - compensable factors not easily measured

Question 13

Pay Equity

Answer 13

Wage gap remains at 30% (due to systematic discrimination)

Must ensure no gender bias in eval
- Long term solution: eliminate male/female dominated jobs