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    CH 3

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    keren chauhan
    Total reward includes all types of compensation including financial and non-financial, direct and indirect, and intrinsic and extrinsic rewards. A total reward strategy is holistic, tailored to the organization, integrates across levels, aligns with business strategy, focuses on employee needs, and provides flexible compensation choices to create a distinctive employer brand. Intrinsic motivation arises from meaningful work while integration involves developing interconnected HR practices. Total reward models take holistic approaches to attract, retain, and engage employees through compensation, benefits, development opportunities, workplace culture, and recognition.

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    CH 3

    Uploaded by

    keren chauhan
    40 views19 pages
    Total reward includes all types of compensation including financial and non-financial, direct and indirect, and intrinsic and extrinsic rewards. A total reward strategy is holistic, tailored to the organization, integrates across levels, aligns with business strategy, focuses on employee needs, and provides flexible compensation choices to create a distinctive employer brand. Intrinsic motivation arises from meaningful work while integration involves developing interconnected HR practices. Total reward models take holistic approaches to attract, retain, and engage employees through compensation, benefits, development opportunities, workplace culture, and recognition.

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    Total reward includes all types of compensation including financial and non-financial, direct and indirect, and intrinsic and extrinsic rewards. A total reward strategy is holistic, tailored to the organization, integrates across levels, aligns with business strategy, focuses on employee needs, and provides flexible compensation choices to create a distinctive employer brand. Intrinsic motivation arises from meaningful work while integration involves developing interconnected HR practices. Total reward models take holistic approaches to attract, retain, and engage employees through compensation, benefits, development opportunities, workplace culture, and recognition.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    40 views19 pages

    CH 3

    Uploaded by

    keren chauhan
    Total reward includes all types of compensation including financial and non-financial, direct and indirect, and intrinsic and extrinsic rewards. A total reward strategy is holistic, tailored to the organization, integrates across levels, aligns with business strategy, focuses on employee needs, and provides flexible compensation choices to create a distinctive employer brand. Intrinsic motivation arises from meaningful work while integration involves developing interconnected HR practices. Total reward models take holistic approaches to attract, retain, and engage employees through compensation, benefits, development opportunities, workplace culture, and recognition.

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    Ch: 3

    TOTAL REWARD
    TOTAL REWARD DEFINED

    Total reward includes all


    types of reward – non-
    financial as well as financial
    indirect as well as direct
    intrinsic as well as extrinsic
    CHARACTERISTICS OF A TOTAL REWARD STRATEGY

    Holistic – focuses on how organizations attract, retain and


    motivate employees to contribute to success using an array
    of financial and non-financial rewards.
    Best fit – tailored to the organization’s culture and work
    processes.
    Integrative – vertical, horizontal and internal integration
    Strategic – aligns reward and business strategies.
    People centred – focuses on employee needs and wants.
    Customized – provides a flexible mix of reward that offers
    choice.
    Distinctive – uses rewards to create a distinctive employer
    brand.
    Underpinning concepts
    i. intrinsic motivation
    ii. integration
     Intrinsic motivation
     Intrinsic motivation:- arises from the work itself
    and its impact on the self-generated factors that
    influence people’s behaviour. Intrinsic motivation
    takes place when individual feel that their work is
    important, interesting and challenging and provides
    them reasonable autonomy(freedom to act),
    opportunities to achieve and advance, and scope to
    use and develop their skills and abilities.
     Integration
    A total reward strategy involves the horizontal
    integration of reward and other HR strategies to
    achieve greater impact and internal consistency.
    This is the process of “bundling”- the development
    and implementation of several HR practices
    together so that they are interrelated and therefore
    complement and reinforce each other.
    TOTAL REWARD BENEFITS
    • Greater Impact

    • Enhancing the employment


    relationship

    • Flexibility to meet
    individual needs

    • Attraction and Retention


    Models of total rewards
     Towers perrin
     Worldatwork
     Zingheim and Schuster
     Hay group
    TOTAL REWARD MODEL – Towers Perrin
    TRANSACTIONAL
    (TANGIBLE)

    PAY AND REWARD


    BENEFITS
    • base pay • pensions
    • contingent pay • holidays
    • Cash bonuses • health care

    COMMUNAL
    INDIVIDUAL

    • shares/ profit sharing • perks


    • long term incentives • flexible benefits

    LEARNING AND DEVELOPMENT WORK ENVIRONMENT


    • on the job learning • core values/ organizational culture
    • leadership
    • training
    • communications
    • performance management • involvement
    • career development • Work-life balance
    • succession planning • non financial recognition

    RELATIONAL
    (INTANGIBLE)
    TOTAL REWARD MODEL – WorldatWork

    external 5 Elements of
    environment Total reward
    organizational • compensation
    culture • benefits employee business
    • work/life satisfaction performance
    attract
    business strategy • performance and motivate and and results
    motivate
    recognition retain
    retain engagement
    Work experience • development and
    HR strategy career opportunities
    TOTAL REWARD MODEL – Zingheim and Schuster

    INDIVIDUAL GROWTH TOTAL PAY


    • Investment in people • Base Pay
    • Development & training • Variable Pay
    • Performance Management • Benefits
    • Career Enhancement • Recognition & celebration
    COMPELLING FUTURE POSITIVE WORKPLACE
    • People focus
    • Vision & values
    • Leadership
    • Company growth & success • Colleagues
    • Company image & reputation • Work itself
    • Trust & Commitment
    • Stakeholdership • Open communication
    • Win-win over time • Involvement
    TOTAL REWARD MODEL – Hay Group
    Hay group
     The hay group total reward framework takes a
    strategy as a starting point- and it focuses on total
    reward- every financial measures together with non
    financial rewards too. It also takes into account the
    needs of both company and employees.
    Hay group design total remuneration
    programe that can help:
     Align the value of the total reward program with individual
    performance, business performance and work culture.
     Provide competitive and differentiated total reward packages.
     Ensure the external competitiveness of the total reward
    program.
     Develop the reward program that most cost effectively meets
    the motivational and retention needs of employees.
     Ensure line manager fully understand the program and can
    lead in implementation them.
    Six most popular non-financial rewards

    Career Development

    Recognition

    Work-Life Balance

    Performance Management

    Involvement

    Work Environment, including work itself


    Models of total rewards produce
    by other consultants
     Mercer (2007)
     Compensation, including recognition
     Benefits
     Career including training and development
     Sibson consulting (2006)
     Direct financial
     Indirect financial, including work arrangement
     Career including training and employees security.
     Work content
     Watson Wyatt (2006)
     Role based reward
     Performance rewards including recognition
     Career and environment rewards including learning and development and work life balance.
    STEPS REQUIRED TO INTRODUCE TOTAL REWARDS

    Clarify Concept

    Monitor and Involve


    evaluate Stakeholders

    Identify total
    Implement reward
    elements
    Total
    Rewards

    Involve line
    Prioritize
    managers

    Make business
    Communicate
    case
    Plan
    development
    Development
    Our strategic
    objective for rewards:

    To attract, retain and Environment


    motivate people to Reward
    perform to the highest
    standards possible. Committed and
    engaged employee
    Those who excel by
    living the values and
    contributing the most
    will benefit the most. Leadership Quality of
    behaviours work
    TOTAL REWARD FRAMEWORK – Agon (Norwich Union Insurance)

    reward performance

    • pay progression, •Recognition


    performance
    • benefits and pay •challenging
    work

    development career framework

    • learning • career
    opportunities opportunities

    • personal • meaningful job


    development content
    Thank you

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