Chapter 11 - Strategic Pay Plans Flashcards
1
Q
Monetary rewards
A
AKA “Extrinsic”
- compensation: cash payments and benefits
2
Q
Non-monetary
A
AKA “Intrinsic”
- personal growth and interpersonal rewards
3
Q
Total awards approach
A
- rewards are part of integrated whole
- aligns rewards with business strategies
4
Q
Five components of Total Rewards
A
- Compensation
- Benefits
- Work-life programs
- Performance and recognition
- Development and career opportunities
5
Q
Considerations determing pay rates
A
- legal considerations in compensation (employment standards act, pay equity acts, Human Rights Acts, other legislation)
- union influences, compensation policies, equity and its impact on pay rates
6
Q
3 Stages in establishing pay rates
A
- Job evaluation
- Conduct wage/salary survey
- Combine job eval and salary survey
7
Q
First Stage in establishing pay rates
A
Job Evaluation
- benchmark job, compensable factors, classification/grading method, point method (identify compensable factors)
8
Q
Point Method Steps
A
(establishing pay rates)
- Preliminary Steps
- Determine Factor weights and degrees
- Assign points for each degree of each sub factor
- Evaluate jobs
9
Q
Second Stage in establishing pay rates
A
Conduct wage/salary survey
- avoid upward bias
- informal surveys and formal surveys
10
Q
Thir stage in establishing pay rates
A
Combine Job Eval and Salary Survey Info
- Wage curve
- Pay ranges (pay grades)
11
Q
Broadbanding?
A
Reducing the number of salary grades and ranges into just a few wide levels (bands)
12
Q
Other types of pay
A
- competency based pay
- skill-based pay
- pay for knowledge program
13
Q
Five elements to compensating executive and managers
A
- Salary
- Benefits
- Short-term incentives
- Long-term incentives
- Perquisites
