NURTURING TALENT Flashcards
HOW EMPLOYEES ARE TYPICALLY REWARDED
To motivate employees to do a good job, organizations need to identify and provide the right mix of material offerings, growth
and development opportunities, meaning and purpose, and connections and community.
* Material offerings: such as compensation, physical office space, equipment, flexibility, commuting subsidies, and perks.
* Growth and development opportunities can include acquiring new skills and becoming more valuable in the labour
market.
* Providing meaning and purpose can include offering opportunities for personal and professional growth, aligning an
employee’s values with the organization’s mission, and allowing them to contribute to something greater than
themselves.
* Connections and community can involve creating a sense of mutual accountability, making employees feel appreciated
and valued, and fostering an energizing culture.
Offering remote work can provide individuals with more flexibility, but it can also decrease their sense of belonging and limit
mentoring opportunities. Organizations need to weigh the short-term benefits for individuals against the collective benefits for
the organization.
Offering retention bonuses can help an organization keep employees in the short term, but it may not address the underlying
reasons why employees are leaving or may not provide them with a sense of purpose in the long term. Organizations need to
consider the long-term impact of their decisions on both the individual and collective needs of their employees.
MATERIAL REWARD
- Financial rewards are the most obvious and tangible benefits that an organization can offer to its employees. They
include take-home pay (total earning), graded pay (relative worth), and individual worth (commercial worth), which are
all dependent on the organization’s assessment of the value attached to specific jobs, skills, experience, and employee
performance. Financial rewards can also be structured through flexible benefit schemes, which allow employees to
choose the benefits that best suit their needs. - Non-financial benefits, on the other hand, are those benefits that do not involve direct financial compensation. These
benefits can include entitlement to health insurance, childcare, flexible work arrangements, and opportunities for skills
development and career growth. - Non-financial benefits can be structured through job-based, skills-based, seniority-based, or performance-based
rewards.
o Job-based rewards reinforce the pay hierarchy by linking pay to specific job roles
o skills-based rewards promote a flexible and skilled workforce by linking pay to the acquisition of new skills.
o Seniority-based rewards reward expertise build-up over time
o performance-based rewards link pays to individual performance outcomes.
o Market-based rewards aim to secure sought-after talent by offering above-market wages as an attraction
strategy.
COMPONENTS OF A MATERIAL REWARD
Contingent or variable pay is event/behaviour dependent
* Performance-related pay is based on achieving agreed objectives
* contribution-related pay is based on employees’ competencies,
* skills-based pay is designed to encourage employees to acquire additional skills or specific qualifications.
* However, there has been a long-term decline in the use of performance-related variable and contingent reward
schemes in the UK due to bureaucracy and angst.
Base pay, on the other hand, is assured and regular
* Formal pay structures include a range of payment rates for jobs within the organizational structure
* spot rates are set rates of base pay for individual jobs
* Grading/bands group related jobs within a hierarchy and pay spines have a series of increments within pay grades
based on factors such as length of service.
* The factors influencing base pay include the legal context, economic climate, and internal factors like size and
unionization.
MATERIAL BENEFITS
Employee benefits are an important aspect of reward management that provide employees with financial advantages beyond
their base pay. These benefits can be in the form of cash or non-cash compensation.
Immediate benefits are those that are provided to employees at the time of their employment
* voluntary living wage
* company car
* flexible working hours, and subsidized meals.
Deferred or contingent benefits, on the other hand, are those that employees receive at a later date or when certain conditions
are met
* pension plans, life and medical insurance, and enhanced paternity/maternity leave arrangements.
Example
According to a recent survey, the majority of employers offer a range of benefits to their employees. For instance, most
employers paid all or some of their employees an hourly rate of £9.50. A workplace pension scheme was offered by 77% of very
large organizations, and 92% of employers offered training and career development opportunities. Additionally, 82% of
employers offered 25 days and over paid leave, 85% offered flexible working hours, and 57% provided workers with a computer
that is also used as personal. Furthermore, 53% of employers offer childcare vouchers
IMPORTANCE OF LEARNING IN THE WORKPLACE
Learning, training, and development are crucial components of an organization’s success in today’s rapidly changing business
environment. As technology advances, competition intensifies, and new business paradigms emerge, employees must acquire
new knowledge, skills, and abilities (KSAs) to adapt and maintain employability.
* Training is the process of helping employees develop the KSAs needed in their current job. It is essential for employees
to work without close supervision and be prepared to change. Additionally, training enables individuals to be flexible
and adapt to new tasks or redefined skills for a given task.
* Development facilitates employees’ progression by encouraging personal and professional growth and differentiation.
Organizations must create, disseminate, and embody knowledge in their practices to learn faster than their
environment is changing. This way, they can survive and remain competitive by developing competencies that allow
them to adapt to a rapidly changing environment.
Individuals are increasingly responsible for their own learning and development, as work organizations encourage employees to
take charge of their growth. Therefore, organizations must make effective use of skilled and developed individuals to succeed
OUTCOMES OF LEARNING
The outcomes of learning in the workplace are relevant to both individuals and organizations.
* Knowledge is seen as a “stock” of resources that an organization already has,
* learning is seen as the “flow” of development and acquisition of new knowledge to meet future needs.
A learning organization encourages and facilitates learning by employees to continually develop itself.
Individual:
* capacity for changed performance related to concrete experience
* skilled individuals who are able to perform tasks to successful completion with ease
* increased employability through the development of competencies that meet the needs of the employing organization.
Organisational:
* understanding of the conversion process between tacit and explicit knowledge as a source of competitive advantage,
* individual learning integrated and embedded into the organization,
* the ability to make the most of knowledge resources through effective knowledge management.
LEARNING CYCLE: EXPERIENTIAL (KOLB) MODEL
Kolb’s experiential learning cycle involves four stages
1. concrete experience
2. reflective observation:
3. abstract conceptualization: how does my opinion of this change, why did this happen, what am I going to learn from
this
4. active experimentation
Learning is viewed as a continuous process rather than the achievement of a specific set of outcomes. The cycle involves
experiencing an event, reflecting on it, and trying to improve performance. The central role of experience and conflict between
new concepts and previous knowledge is emphasized.
There are corresponding learning styles associated with each stage of the cycle.
1. The accommodator learns primarily from doing
2. the diverger observes from different points of view
3. the assimilator is comfortable with concepts and abstract ideas
4. the converger prefers the practical and specific.
LEARNING CYCLE
The Lancaster model is based on the analysis of managers’ learning and represents a wide range of learning types including
cognitive, skill development, and effective.
The learning cycle consists of three forms of cyclical learning
1. receipt of input/generation of output
2. discovery through action/experimentation
3. reflection.
The cycle involves being open to new experiences, awareness of the consequences of one’s actions (feedback), and reflection to
make sense of the information received/actions undertaken and conceptualize past/future situations.
TRAINING AND DEVELOPMENT IN ORGANISATIONS
In addition to identifying training needs, it is also important for organisations to consider the effectiveness of different training
and development methods.
On-the-job training is often the most effective, as it allows employees to learn in the context of their specific job and receive
immediate feedback. This can include learning through
* observation
* role models such as supervisors or mentors
* job rotation
* e-learning.
Off-the-job training, on the other hand, involves learning outside of the work environment through:
* formal education courses
* instructor-led training, simulations
* role play
* group discussions.
While off-the-job training can be useful for developing new skills and knowledge, it can also be more costly and less immediately
applicable to the job.
TALENT MANAGEMENT – SEGMENTING
Growth potential/current performance
Contribution/ uniqueness
