Module 1--Introduction to Total Rewards Flashcards
What are the Drivers of the total Rewards Strategy
Internal Factors (business strategy, culture, workforce, inclusion, and leadership.
External influences: include social/cultural norms, the regulatory environment, advancements in AI and technology, and competitive (product and labor) markets
What are the internal and external influences that impact an organization.
■ Internal factors encompass business strategy, culture, workforce, inclusion, and leadership
■ External influences include social/cultural norms, the regulatory environment, advancements inAI and technology, and competitive (product and labor) markets
Define the elements of the Total Rewards
■ Compensation
■ Well-being
■ Benefits
■ Development
■ Recognition
What is the Total Rewards Strategy
is the art of combining the five elements of the total rewards (Compensation, Well-being, Benefits, Development , Recognition) into a tailored package to the meed the needs of the organization and its employees.
What are the Total Rewards approach
When the human resources professional strives to find the appropriate mix of total rewards elements that will not only attract, motivate and retain employees, but lead to employee satisfaction and engagement as well.
What are the advantages of the total Rewards Approach
■ Greater flexibility
* Each company, given its own specific challenges, customizes its total rewards programs in unique proportions. This is called the total rewards mix.
* By approaching rewards as a “portfolio” to be managed, the organization can have flexibility with different groups and over time.
■ Increased profitability
* A direct link exists between attracting the right talent, having engaged and motivated employees, and long-term business profitability.
* Organizations can direct resources to the rewards that employees value the most, scale back or eliminate rewards that aren’t as desired, thereby reducing overall costs.
■ Better place to work
* Organizations that take a total rewards approach, and offer rewards that employees value, are often rated as best places to work.
* Highly rated companies usually offer desired rewards programs that go beyond just traditional compensation and benefit programs.
What is the Total Rewards Model
A framework for designing, implementing and assessing the rewards packages offered throughout the organization.
What are the internal influences on the total rewards strategy
■ Strategy - Total Rewards strategies are a mechanism to make a strong business strategy come to life. Whether the goal is operational excellence, product/ service leadership, or customer engagement – rewards programs help communicate expectations, align efforts, and motivate the behaviors required to deliver results.
■ Culture - Simply stated, organizational culture refers to a set of shared values and beliefs that form over time as people interact and work together. It encompasses an organization’s vision, values, norms, and ultimately influences workforce experiences and outcomes. Total Rewards offerings can help transform and re-enforce desired cultural norms, and significantly influence how work is performed and recognized in the organization.
■ The Workforce - Rewards must be tailored to meet the needs of an increasingly diverse pool of employees that is defined by geopolitical trends, tech advances and talent demographics, including today’s up-to-five-generation workforce. Savvy Total Rewards pros see this as an opportunity to attract the highest performers and “best” the competition.
■ Inclusion - In these hyper-accelerated times, diversity and inclusion strategies provide organizations with a competitive advantage in talent attraction and workforce productivity. Total Rewards professionals leaders can help organizations achieve greater diversity while building an inclusive culture by developing clear approaches for pay equity and transparency, career development, inclusive benefits and more.
■ Leadership - Total Rewards programs are only effective when leaders play an active role to promote understanding and appreciation of the rewards programs. Total Rewards practitioners must work with organizational leaders to ensure that Total Rewards initiatives align with business goals and that
What is the Business Strategy
Business Strategy is a broad framework of principles and approaches that guide the day-to-day decisions affecting the business. It is derived from the vision and mission of an organization.
What are Examples of the Businsss Strategy
■ Operational excellence – primarily a price/cost-based strategy
* This strategy often includes a combination of price, quality, dependability and ease of purchase that competitors cannot match. The corporate culture typically strives to minimize waste and reward efficiency.
■ Product/service leadership – primarily an innovation-based strategy
* This strategy focuses on innovation, product development and market exploitation. The corporate culture encourages imagination and a mind-set driven by the prospect of creating the future.
* Organizations that use this strategy offer products and services that expand performance boundaries (the best products), leapfrog/replace technologies/products, create more/better ideas and commercialize them faster than their competitors.
■ Customer intimacy – primarily a solutions-based strategy This strategy focuses on creating results for carefully selected customers (making them successful). The corporate culture encourages deep and lasting relationships with customers.
* Organizations that use this strategy build bonds with targeted customers; they meet or exceed customer needs to build customer loyalty.
What are the 4 stages of Business Life Cycle?
■ Start-up
■ Growth
■ Mature
■ Decline
What is organizational culture?
Typically, it includes a set of often unspoken expectations, behavioral norms and performance standards to which the organization has become accustomed.
What are the External Influences on Total Rewards?
■ Social Norms
■ Regulatory
■ Artificial Intelligence and Technology
■ Product Market
■ Labor Market
Who are the key players involved in the Total Rewards Strategy Development?
■ Senior management/board of directors
■ Human Resource Leadership
■ Employees
■ Outside Consultants
Why is it important for total rewards professionals to understand labor market trends?
A. To attract talent at an affordable cost
