Class 13 - Total Rewards

Question 1

• 5 fingers (Big, opposition, crude, wedding, pinky)

Answer 1

• Everything an employee values in the employment relationship
• Includes extrinsic and intrinsic rewards
  Benefits
  Opportunities
  Compensation
  Work-life programs
  Performance recognition

Question 2

Compensation (purpose)

Answer 2

Purpose is to attract, retain, and motivate employees

Strategic compensation links the compensation paid to employees to the overall goals of the organization
> e.g. a low-cost strategy will have a different approach to rewards than will a service-based strategy

Question 3

Job-Based Approach: Job Evaluation

Answer 3

A process to determine the value of a job
Considers the job in relation to other jobs within the organization
- concerned with internal equity
- concerned with pay equity
- used to develop grades and ranges
- Ontario Pay Equity Commission bases on skill, effort, responsibility, working conditions

Question 4

Skill or Competency (i.e. Person)-Based Pay

Answer 4

Based on an individual’s specific skills or knowledge

Aims to increase skill base of workforce or have best talent available

Benefits:

• Increases flexibility
• Workforce more effective, lean, problem-solving
• Increases employee value, motivation, satisfaction

Question 5

Variable (“At Risk”) Pay

Answer 5

Pay that is contingent on other factors

Bonus – gift not related to performance

• Signing
• Length of service
• Time keeping (I.e. attendance)
• Seasonal

Incentive – reward linked to performance

• Individual pay-for-performance
• Team pay-for-performance
• Organization pay-for-performance

Question 6

Case - Raleigh & Rosse

Answer 6

Determined some of the downfalls of incentive systems in promoting undesirable behaviours.

Analyzing the SPH system…
-> In what ways is it a good performance metric?
> What does it measure/not measure?
> How is it linked to compensation?
> How is it linked to business strategy?
> How does it incent desirable and undesirable behaviours?
> What do you recommend to R&R to improve its system?

Question 7

Evaluating Total Rewards Systems

School Creates Awful Feelings of Anxiety

Answer 7

Is the system:

• Sustainable
• Consistent (at promoting desired behaviour - well-designed)
• Affordable
• Fair and equitable
• Appropriately complex

Question 8

Issues with Total Reward Systems

Answer 8

We hope for:
Teamwork and collaboration | innovative thinking and risk taking | development of people skills | employee involvement and empowerment | high achievement | long-term growth | commitment to total quality | candor

Yet, we reward:
The best individual team members | proven methods and no mistakes | technical achievements and accomplishments | tight control over operations, resources | another year’s efforts | quarterly earnings | shipment on schedule, even with defects | reporting good news