Total Rewards Communication & Special Situations (M3)

Question 1

What needs to be communicated when it comes to compensation?

Answer 1

1. Pay Philosophy & Strategy
2. Basics of Base Pay
3. Basics of Variable Pay
4. Compensation according to law (pay stubs, W4, etc.)

Question 2

The following questions refer to communication around which area of Compensation?
Are you a pay for performance organization? Pay for longevity? how do people get advances in pay? How do they move up?

Answer 2

Compensation Philosophy and Strategy

Question 3

Getting employees to understand about their pay grade and what a mid point means , refers to which area of Compensation communication?

Answer 3

Basics of Base Pay

Question 4

What type of communication is a W4 or Paystub in reference to compensation?

Answer 4

Legally required communciation

Question 5

In the UK, what type of form do you receive when your job ends?

Answer 5

P45

Question 6

Who is often the first line of communication or information to employees on compensation?

Answer 6

Managers and supervisors.

Question 7

What compensation communication style is most favored by executives in Western organizations?

Answer 7

Closed Communication Approach (quiet, undisclosed compensation amounts)

Question 8

What type of compensation communication has been adopted by unions and the US government?

Answer 8

Open communication. Pay Grades are wide open and everyone knows what each position and grade pays.

Question 9

What philosophy and strategy style is seen in regards to benefits in many government entities?

Answer 9

Paternalistic, where benefits are overly generous

Question 10

What does it mean when an organization’s benefits is driven by seniority?

Answer 10

The longer you’re with the company the more benefits you receive.

Question 11

What are the legally required communications for benefits?

Answer 11

1. Benefits Statement
2. Summary Plan Descriptions, issued every 10 years
3. Summary of material modifications: When changes happen to health or medical plans
4. Summary of benefits coverages (SBC) - 8 Page document

Question 12

What information is important to communicate about benefits when a person is terminated?

Answer 12

Will they continue to be covered and if so how long is the overlap once they start a new job.

Question 13

How does benefits differ from compensation in terms of communication and audience?

Answer 13

Benefits impacts a larger audience such as family members than compensation which only impacts employees.

Question 14

What is one of the most important demographics to consider when communicating changes to benefits?

Answer 14

Length of Service Demographics. Longer serviced employees will feel more entitlement when it comes to the company and benefits.

Question 15

What are the types of measures for performance management?

Answer 15

individual measures, team measures, and/or organizational measures

Question 16

Who is responsible for delivering individual performance and who is responsible for delivering corporate performance?

Answer 16

Manager - Individual

CEO/CFO - Corporate

Question 17

when it’s communicated
well, and the employee value proposition is understood by employees and the companies are backing up and making good on
their promises, how does the company improve?

Answer 17

The company improves on financial performance.

Question 18

What are common ways in which a company can communicate the Employee Value Proposition to employees? And what form is the most impactful?

Answer 18

a Statement, a Slogan, a Graphic.

Graphic designs are often the most impactful forms of communicating EVP

Question 19

What is the Total Rewards Statement?

Answer 19

A Statement that is personalized and captures and sets a value on all of the rewards that an employee gets for being part of the organization.

Question 20

What one thing encompasses all of the elements of total rewards strategic communication

Answer 20

The Total Rewards Statement

Question 21

What are the steps for delivering a negative communication? (i.e. layoff)

Answer 21

1. tell the employees the situation that the company faces so you’re very clear.
2. Explain how the business decision was made.
3. Outline the alternative choices (A,B and C) and why you chose option C.
4. Give employees a coping strategy.

Question 22

When delivering negative communication, who should be responsible for delivering the message to employees and explaining the decision?

Answer 22

The person or people who made the decision. (If CEO made the decision s/he should deliver and not hand down to VP HR to deliver the message.)

Question 23

When delivering a message to a global audience, who should be responsible for delivering the message?

Answer 23

Asian countries: Very specific by title and seniority level.

American cultures: May still be an executive, but the leader has the right presence and body language.

Question 24

How doe compensation and benefits differ globally?

Answer 24

USA - heavily weighted towards Cash Comp.
Other parts of the world - May be 50-60% in cash comp and the rest goes towards housing or car allowances due to tax regulations

Question 25

What are some of the event and customary differences between the US, Europe, Brazil, Canada and the Middle East?

Answer 25

USA - Common to only receive 2 week PTO
Europe - Common to receive 6 weeks of PTO and most of Europe is close in August.
Brazil - Carnival
Canada - Thanksgiving arrives earlier than US
Middle East - The workweek starts on Sunday and Friday and Saturday are the weekend.

Question 26

Who must review communications once you cross a global border?

Answer 26

A new set of lawyers must review communication. It can’t simply be translated into the local language. It must be vetted by lawyers and other personnel in that region.

Question 27

What should a company be prepared for when it comes to employees acquired through mergers and acquisitions?

Answer 27

They should be prepared for employees to go from being highly effective to acting as new employees and they should be prepared to answer employee concerns.

Question 28

Contracts may be very specific about how you may talk with union employees. Why might it be an issue to conduct a focus group with union employees and talk about how effective a time off program works?

Answer 28

It can be considered an unfair labor practice because it looks like individual negotiation with employees rather than negotiating with a union.

Question 29

When communicating about Total Rewards with outside vendors, what are some necessary points to discuss?

Answer 29

1. Be very clear about what service you want the vendor to provide.
2. Orient the vendor about your company
3. Involve the vendor as much as possible and allow them to have a seat at the table.
4. Share communications (e-files) as much as possible.
5. Follow-up and give feedback.

Question 30

When working on Total Rewards changes with inside vendors, what are some necessary processes to consider and points to discuss?

Answer 30

1. Include all necessary stakeholders (finance, legal, etc.)
2. Assign a project manager
3. Find a way to communicate and work together. (i.e. We all come together on Monday for an hour then get an assignment for the week vs. virtual)
4. Set-up goals and objectives and ensure deadlines are understood.
5. Have single approval process.

Question 31

The degree of openness regarding compensation communications is generally influenced most by which of the following?

A. Corporate culture
B. The presenter
C. Legal requirments
D. The channel used

Answer 31

A. Corporate culture

Question 32

When developing a communication campaign for a new health insurance program, which of the following should be taken into consideration?

A. Employees’ self-esteem may be attached to certain programs
B. Supervisors may have a great deal of control over the program
C. The audience may go beyond employees and include other decision-makers
D. The communication may need to integrate with other programs

Answer 32

C. The audience may go beyond employees and include other decision-makers

Question 33

What is a tool that an organization can use to quantify the value of an employee’s total rewards package?

A. Total rewards statement
B. Total rewards philosophy
C. Total rewards strategy
D. Total rewards elements

Answer 33

A. Total rewards statement

Question 34

Company XYZ will be experiencing layoffs over the next several months. Which of the following is the best course for communicating this negative change?

A. Inform management-level employees, but wait to inform others until absolutely necessary
B. Provide employees with a clear picture of the situation that the organization is facing
C. Create multiple messages for different employees
D. Communicate the negative change using humor

Answer 34

B. Provide employees with a clear picture of the situation that the organization is facing

Question 35

What is one key to developing effective communication with an external vendor?

A. Copy communication pieces that were successful at other companies
B. Establish clear performance expectations
C. Limit vendor feedback
D. Allow the vendor to independently create and communicate the messages

Answer 35

B. Establish clear performance expectations