People Flashcards
The starting point for developing a total rewards strategy. A short (but broad) statement documenting the organization’s guiding principles and core values about employee compensation. A philosophy articulates the “why” behind employee pay.
compensation philosophy
Compensation philosophies are typically developed by whom?
HR in collaboration with the executive team
a plan or method implemented by an organization that provides monetary, benefits-in-kind, and developmental rewards to employees who achieve specific business goals
total rewards strategy
The critical for success of a total rewards strategy.
Senior management buy-in
What skills are key HR competencies to help ensure that the strategy is embraced by all stakeholders?
Interpersonal and communication
In which process step in developing Total Reward Strategy that one or more HR professionals evaluate the current compensation and benefits systems and the effectiveness of those systems in helping the organization reach its goals. Employees are typically surveyed on their opinions and beliefs regarding their pay, benefits, and opportunities for growth and development. Current policies and practices are examined.
Assessment
In which process step in developing Total Reward Strategy a senior management team made up of HR and department representatives identifies and analyzes various reward strategies to determine what would apply best in their workplace.
Design phase
What can help department managers to effectively measure the achievement and employees understand what they need to accomplish to receive the rewards? I
Training
How do you know if the organization’s total rewards strategy is effective?
cost-effectiveness, affordability, compliance with laws and statutory regulations, compatibility with mission and strategy, match with the organizational culture, appropriateness for the workforce, and equity.
first consideration in developing a compensation and benefits system
review the organization’s mission and strategy
In general, as benefits increase, there is less emphasis on individual employee contributions and responsibility and more emphasis on the success of the organization as a whole.
Entitlement-oriented
The compensation programs of other organizations are more performance-driven, putting emphasis on the performance and contributions of individual employees. These compensation systems emphasize performance-based pay, incentives, and shared responsibility for benefits.
Contribution-oriented
One way to keep in touch with the employees’ preferences in Total Reward Strategy.
conducting surveys
What helps to ensure legal compliance with fair pay regulations and prevent employee lawsuits for alleged pay discrimination
Internal equity
Most common approach in Pay Strategy. Often referred to as being externally competitive.
Match market competition
What issue may caused by organizations using more than one pay strategies?
morale issues and lead valuable employees to seek jobs in other organizations
What is the first tenet in mitigating external inequity?
start with competitive base pay
Which survey is critical in assessing external equity?
remuneration surveys
What are HR Implications towards Cultural differences in Total Reward Strategy?
Avoid headquarters biases and Involve local contacts to understand customary compensation and benefits practices.
What are HR Implications towards Standardization versus Localization in Total Reward Strategy?
Have a long-term plan to support the organizational compensation philosophy, but consider local restrictions, tax regimes, and culture.
What are HR Implications towards Competitive Labor Market in Total Reward Strategy?
Employ people with similar skills when industry-specific expertise is in short supply or competition is high; retrain or coach the hires on the job; develop and mentor talent.
