Upload
dinhkhue
View
219
Download
3
Embed Size (px)
Citation preview
Evolving Total RewardsFind, Keep & Reward The Talent You Need
Introduction• Director of HR & Total Rewards
Solutions at The Talent Company• Our Mandate:
Help organizations Find, Keep, Reward & Transition the right talent
• We design & deliver practical & effective HR, Talent & Total Rewards strategies, programs & processes
What We’ll Cover Today
Understanding Total Rewards
The Right Mix of Total Rewards Trending Practices
Practical Tips & Techniques Recommendations
What Is Total Rewards?
Total Rewards
Compensation Health & Wellness
Financial Security
Retirement & Savings
Life Changes & Challenges
Professional Development
Defining Compensation
• Salary/Regular Wage• Bonuses/Incentives• Overtime• Vacation• Personal Time Off
Bonus versus Incentives
Bonuses• Tied to Group/Organizational results• Discretionary• Goals may/may not be pre-communicated & knownIncentives• Tied to Group/Organizational results• Formulaic• Goals are pre-communicated & known
Defining Total Rewards
Total Rewards
Compensation Health & Wellness
Financial Security
Retirement & Savings
Life Changes & Challenges
Professional Development
Defining EVP
Great Job
Great Rewards
Engaged & Retained Employee
Great Company
Effective Total Rewards• Aligns with your organization’s mission• Ensures you find, keep, reward & engage
the right talent• Ties rewards to business strategy & results• Drives team & individual performance• Understood by all employees
Effective Total Rewards -Challenges
• Activity led by technical subject matter experts• Organization’s mission or goals not clear• Conflicting goals• Metrics to measure/drive performance not
established• Rewards practices are designed
to be efficient not effective• Volume of work• Team capability
Designing Total Rewards
Compensation/Total Rewards Philosophy
• 90% Have a compensation/total rewards philosophy
• 60% Communicate philosophy in writing
• 30% Communicate philosophy effectively
Defining Your Total Rewards Philosophy
Total Rewards Perspectives
Traditional Meritocracy
Purpose-Driven Teal
Traditional Perspective• Defined by:
• Tenure/seniority or skill-based pay• Strict job structures and hierarchies• Base Pay + Bonus
• Pros:• Clear rules• Easy to administer • Effective cashflow management
• Cons:• Sense of entitlement can develop• Demotivating• Limited flexibility
Meritocracy• Defined by:
• Pay for performance• Employee evaluations and/or rankings based on past
performance• Base Pay + Variable Incentives
• Pros:• Rewards results• Aligns payouts to company performance• Allows for discretion/flexibility
• Cons:• Complex/often poorly administered• Personal opinion/bias can have a bigger impact• Top talent conundrum
Purpose-Driven Approach• Defined by:
• Focused on common purpose or autonomy, mastery & self-direction• Objective is to remove money as a behaviour driver• Base Pay + (sometimes Group/Organizational Bonuses)
• Pros:• Focuses work effort• Increases engagement• Motivating
• Cons:• Not compatible with rigid or command/control environments• Requires strong culture to implement• May not appear market competitive
Teal Philosophy• Defined by:
• Teal paradigm/organizational structure• Self-set compensation and complete transparency• Base Pay + Variable Incentives/Bonuses
• Pros:• Fosters openness & promotes fairness• High buy-in from participants• Rewards individual and group performance
• Cons:• Not compatible with rigid or command/control environments• Requires strong culture to implement• May not appear market competitive
Why Are Strong Fundamentals Necessary?
Organization Individual
Consistent frameworkfor Rewards decisions
Increases confidence that decisions are fair & equitable
Improves ROI onyour talent investment
Clarifies how tomaximize compensation
Connects & aligns Rewardsto other HR/Business priorities
Clearer understanding ofhierarchy, career paths
Compensation Framework
Reward PeopleThe Right Way
What You Can Afford
What People Want
What Is Fair
Use The EntireTotal Rewards Toolbox
Key Trends
Eliminating Performance
RatingsLong-Term Incentives
The Gig Economy
Fast Changing
TechnologyDrive For Innovation
Eliminating Performance Ratings
Rationale For EliminatingPerformance Ratings
Rationale For EliminatingPerformance Ratings
Eliminating Performance Ratings - What’s Next?
How do you make decisions about rewards?• We don’t know• Shadow Ratings/Rankings• Target Pay• Career Based Milestones• Direct Contribution
Long Term Incentives
The Gig Economy
Did You Know?
25% Contractor,Temp or PT
42 millionAmericans by
2020
1 in 3Millennialsfreelance
Fast Changing Technology
76%of Canadian organizationsare or will implement a new HR Systemwithin the next year.
Drive For Innovation
Discussion Activity
Break into groups to discuss the questions below:1. Which trend has the biggest impact on
your organization?• Is it a positive or negative impact?• How big is the impact?
2. How can your organization capitalize on this trend?
3. What other areas of HR does this impact?
Practical Tips & TechniquesThe 5 C’s
Collaborate Communicate Change
Capacity Capability
Collaborate
People Leaders
IndividualEmployees
HR/Rewards
HR/Rewards Role• Leverage your expertise to educate & gain buy-in• Communicate an overall roadmap• Support Rewards practices & decision making• Provide ongoing coaching• Deliver practical, flexible tools & support
People LeadersAre Critical To Success
• People Leaders must be a priority• Drive conversations about Performance & Rewards• Remember: Compensation is only a single driver;
it can’t fix all motivation & performance problems.
TIP:Communication from a People Leader is 3x more impactful than the same communication from HR/Rewards.
Employee Feedback
TIP:Want to know what your employees want?
Ask them!
Communicate
“The single biggest problem in communications is the illusion it has taken place.”
- George Bernard Shaw
Know Your Audience
When do I get a raise?
Communications• Craft transparent, clear & compelling communications• Learn from marketing – segment your message• Respect & recognize their contributions
Why Change?
Managing Change• The Talent Company Pulse On Leadership:
Managing Change is the most significantgap in leadership
Building Capacity
Building Capability
Conclusions• Total Rewards must evolve• No “one size fits all” solution• People Leaders are critical• Communication & change management
have a huge impact• Don’t try to boil the ocean
Questions?