Rewarding and Recognizing Employees - chap 8 Flashcards

Question

what about job systems

Answer 1

Job ranking does not review each job in detail, but instead compares the overall value of one job relative to another. It is typically considered to be a simplistic or relatively weak method of job evaluation.

Answer 2

Job classification groups similar jobs under a common title and pay based on duties and responsibilities. Jobs with greater responsibility or skill fall into higher classes with different titles and pay. For example, the federal government’s “social science services group” uses 9 factors, including challenging conditions like threats to personal safety. Managers compare job descriptions to classification scales to assign wage grades. This method is simple but not very precise, as it evaluates the job as a whole rather than specific tasks. (needed for fair and consistent pay)

Answer 3

he point system is a numerical job evaluation method that assigns points to compensable factors like skills, effort, responsibility, and working conditions. These points reflect a job’s value to the organization. Though complex to set up, the system is easy to use once in place. ADV. It offers a more detailed and objective way to compare jobs than ranking or classification, making it more valid and harder to manipulate.

Answer 4

This method compares compensable factors (skill, mental/physical effort, responsibility, working conditions) of jobs against those of key jobs used as benchmarks. It’s often used for pay equity legislation. hough methods aim for objectivity, managerial judgment is still needed to define job content and responsibilities. To reduce bias, evaluation committees are often used. Important guidelines for job evaluations: Evaluate the job, not the person. Assume competent performance. Use the current job description. Ignore current pay when evaluating. DIFFERS from point system because point system has a scale with number this is more judgement based and between internal jobs of the org.

Answer 5

they do not in themselves determine the wage rate. Information about the evaluated worth of each job needs to be expressed as hourly, daily, weekly, or monthly wages. In order to do this, salary surveys are used.

Answer 6

A salary survey provides information about what relevant competitors (determined by industry and/or geographic location) are paying employees who perform similar work allowing managers to keep up with the pay of competitors

Answer 7

Important: Don’t rely on job titles alone—similar titles may mean very different roles across organizations. Always compare based on job content, not titles.

Answer 8

A visual tool showing current pay rates for jobs within a pay grade, based on company ranking. It helps ensure fair pay for skill and education levels. Wage curves can also compare a company’s pay to industry competitors, helping employers stay competitive in compensation.

Answer 9

Steps in a compensation system where similar or equal jobs (based on job evaluation) are grouped and given the same pay rate or range. Pay grades: Groups of jobs within a class that share the same compensation level.

Answer 10

Most jobs have a range of pay, not just one set amount. As employees gain experience or stay longer at the company, they can move up within that range and earn more.

Answer 11

means combining many pay grades into a few wide pay bands. It gives employees more flexibility to move across roles, build new skills, and grow their careers—without focusing only on getting higher pay. It supports career development and makes it easier to pay for jobs with different skill levels.

Answer 12

However, this approach does not acknowledge or reward employees for their unique skills and knowledge. this approach does not encourage employees to learn new skills or to contribute to the work and accomplishments of others.

Answer 13

referred to as knowledge-based pay, skill-based pay, pay for knowledge, or multi-skill-based pay—compensates employees for their knowledge and/ or skills and for the work they perform regardless of their formal job description.

Answer 14

Link competencies to business objectives * Identify which jobs or types of work could benefit * Identify competencies that demonstrably affect performance * Devise methods to measure the achievement of each competency * Determine the appropriate amount of pay for an acquired skill * Provide mechanisms to review overall effectiveness

Answer 15

variable pay programs Individual bonus Team- or group-based incentive Merit raises Profit sharing Employee stock ownership plans (ESOPs)

Answer 16

an incentive payment that supplements the basic pay has the advantage of providing employees with more pay for exerting greater effort, while at the same time giving employees the security of a basic wage. Bonuses are common among managerial employees but, as indicated earlier, organizations are increasingly providing bonuses to front-line staff.

Answer 17

a plan that rewards team members with an incentive bonus when agreed-upon performance standards are exceeded.

Answer 18

an incentive, used most commonly for salaried employees, based on achievement of performance standards. One problem with merit raises is that they may be perpetuated year after year even when performance declines.

Answer 19

any plan by which an employer pays special sums based on the profits of the organization.

Answer 20

tock plans in which an organization contributes shares of its stock to an established trust for the purpose of stock purchases by its employees. With the recent economic turmoil, stock and stock options have not been as popular. There is also always the issue of what happens to stock ownership when there is a change in ownership.

Answer 21

he cost of benefits can be as high as 40% when you include premiums for health and welfare, government-mandated coverage such as workers’ compensation, vacation, and paid sick leave Once viewed as a gift from the employer, benefits are now considered rights to which all employees are entitled.

Answer 22

improve employee work satisfaction; * meet employee health, security, and environment concerns and requirements; * attract and motivate employees; * retain top-performing employees; * maintain a favourable competitive position. ex. sasktell is in top 10 for providing yoga classes

Answer 23

Benefit Costs: Organizations spend 35–45% of payroll on benefits (health plans, pensions, etc.). Cost Management: Employees may join committees to help manage costs (e.g., redesigning pension plans). Example: Saint John Energy redesigned its pension plan to reduce costs while maintaining benefits. Healthcare Costs: Employers balance quality and cost; data analysis and wellness programs help reduce costs. Value-Based Healthcare: Promotes healthier lifestyles for better productivity and lower costs.

Answer 24

These include employer contributions to the Canada or Québec Pension Plan, Employment Insurance, workers’ compensation and, in some provinces, provincial medicare and unpaid leave.

Answer 25

Sick Days: Employees, especially in white-collar jobs, often receive a set number of sick days annually to cover illness or injury. Income Protection: Group insurance is increasingly common, providing partial income protection during long-term disability. Workers’ Compensation: Job-related illness or injury may be partially reimbursed through workers’ compensation insurance. Absence Statistics: In 2020, employees missed an average of 10 workdays (2% of the work year) due to illness or family responsibilities. Women missed 12 days on average, and men missed 9 days.

Answer 26

These focus on preventive health and overall well-being. They aim to promote physical, mental, and emotional health through activities like fitness programs, stress management workshops, health screenings, and lifestyle advice. ROI: While the exact return is uncertain, companies like Bruce Telecom demonstrated savings. By analyzing health claims, drug claims, and sick days, Bruce Telecom saved over $136,000 in one year.

Answer 27

Purpose: EFAPs help employees manage personal issues (e.g., substance abuse, emotional struggles, financial/family difficulties) that could impact work productivity. Focus: Provide diagnosis, counseling, and treatment for personal problems to prevent crises. Benefits: Support mental well-being, improve employment branding, and enhance company productivity. Pre-COVID-19 Impact: WHO estimated depression and anxiety cost the global economy $1 trillion annually.

Answer 28

help employees keep up to date with advances in their fields and to help them get ahead in the organization. Usually, the employer covers, in part or in full, the costs of tuition, books, and related fees, whereas the employee is required to pay for meals, transportation, and other expenses.

Answer 29

Statistics: 17% of Canadians are 65 or older. One-third of employees are caregivers. $1.3 billion lost annually due to caregiving. Senior population needing care will double in 15 years. Childcare: Benefits may include financial assistance, flexible schedules, and on-site childcare centers. Eldercare: More employees provide care to elderly relatives, leading to potential time off or flexible work options. COVID-19 Impact: Increased caregiving responsibilities and legislative changes for unpaid, job-protected leave. Solutions: Companies offer eldercare counseling, support groups, and flexible schedules. Programs like BMO’s caregiver support help retain talent and reduce absenteeism.

Answer 30

These range from long-service awards to employee of the month initiatives to peer recognition systems. These programs can enhance the overall workplace culture, enhance employee motivation, and increase employee retention.