Module 8 Total Rewards: Putting It All Together

Question 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 six elements of total rewards.
D. The process is used to determine what will motivate and retain employees.

Answer 1

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

Question 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 2

C. Support staff needed to administer the program

Question 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 work-life programs. Include only compensation.

Answer 3

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

Question 4

Total rewards design considerations (8)

Answer 4

1. Labor market
2. Competition
3. Legal/regulatory
4. Technology - self-service web sites, administrative or enterprise software packages
5. Cost issues - time, implementation, funding, compliance
6. Budgeting - rising health care costs, demographic shifts
7. Support staff needed
8. Globalization - one size does not fit all in the global marketplace

Question 5

How to communicate the value of a total rewards package (2)

Answer 5

• Employee value proposition (EVP)

- Total rewards statement

Question 6

Employee value proposition

Answer 6

The EVP defines what employees give to the company and what they get in return. “Why people work here.”

Aka employment exchange or employment deal.

Question 7

Total rewards statement

Answer 7

Some orgs prepare statements summarizing value of each EE’s complete total rewards package. Avoid arbitrarily setting or estimating a monetary value on intangible benefits that not all employees use or value.

• Compensation and benefits data combined
• Value of work-life programs itemized
• Value of recognition and talent development programs itemized
• General information and specific data
• Individualized, personalized
• Sent to employees, available real-time electronically, or given