Module 7--Putting it all Together

Question 1

What are Total Rewards Design Considerations (4 of em)?

Answer 1

■ Labor market
* Availability of needed talent
* Location/demographics
* Competitive wages/rewards

■ Competition
* Industry competitors
– Labor
– Products/services

■ Legal/regulatory
* Laws
* Wage and hour laws
* Government mandates
* Governing bodies
* Employment rights
* Taxation issues

■ Technology
* Self-service websites
* Administrative software packages
* Enterprise software systems

■Cost issues affecting the design process
* Time – internal and external time, as well as time to design and review various programs and approve them
* Implementation – Communicating and administering programs involves the use of resources.
* Funding – cost for premiums or contributions to plans as well as establishing and maintaining trust funds
* Compliance – Adding or revising programs may result in costs to comply with legal and regulatory mandates.

■ Budgeting
* Rising health care costs continue to increase the cost of benefits programs.
* Demographic shifts in the workforce will affect the cost of benefits programs and the demand for various well-being effectiveness, recognition, and development programs.

■ Support staff needed to administer the program
* A consideration often ignored, forgotten or miscalculated is the number of support staff needed to effectively implement and administer the total rewards program.

■ Globalization – As organizations become more global in their outlook and in providing goods and services, they will be looking at innovative ways of rewarding and recognizing employees. One size will not fit all in the global marketplace.

Question 2

what is the Employee value proposition

Answer 2

EVP defines what employees give to the company and
what they get in return. It encompasses every aspect of the employment relationship in a way
employees can relate to it. While it may encompass the organization’s mission, values, culture
and total rewards programs, it is about defining “why people work here” and it extends beyond a
list of programs, to truly capture the experience and culture of a particular organization.
It is also referred to as the employment exchange or employment deal in that it is a two-way
street. The employer provides value to the employee – in the form of total rewards that are
valued by employees. Organizations can communicate their value propositions to attract,
motivate, engage and retain employees. Research has shown that when the EVP is communicated
effectively and employees understand the value proposition, their organization’s financial
performance is above that of their peers.

Question 3

Communicating the Value of a Total Rewards Package–Total Reward Statement

Answer 3

communicating information targeted to the five elements of the total rewards
strategy, some organizations prepare statements summarizing the value of each employee’s complete total rewards package. Total rewards statements can help achieve greater employee appreciation and understanding of their total rewards package.

Question 4

1. What best describes the reason why the total rewards design model is circular?
   A. The process ends after evaluating programs.
   B. The process should not become too far removed from the corporate mission.
   C. The process should maintain alignment to the five elements of total rewards.
   D. The process is used to determine what will motivate and retain employees.

Answer 4

B. The process should not become too far removed from the corporate mission.

Question 5

2. Which of the following is a design consideration that is often ignored, miscalculated or forgotten?
   A. Rising health care costs that increase the cost of benefits programs
   B. Legal and regulatory compliance issues
   C. Support staff needed to administer the program
   D. Competitive wages and rewards

Answer 5

C. Support staff needed to administer the program

Question 6

3. Which statement is most accurate regarding a precaution to be taken in communicating total
   rewards statements?
   A. Avoid sending a total rewards statement to an employee’s home address.
   B. Avoid summarizing each employee’s complete total rewards package.
   C. Avoid arbitrarily setting a monetary value on intangible benefits that not all employees use.
   D. Avoid itemizing the value of benefits or well-being programs. Include only compensation.

Answer 6

C. Avoid arbitrarily setting a monetary value on intangible benefits that not all employees use.