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Total Rewards Strategy derek hendrikz
| Date post: | 08-May-2015 |
| Category: |
Recruiting & HR |
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Copyright © 2014
Derek Hendrikz Consulting
www.derekhendrikz.com
Defining ‘Total Rewards’:
Total Rewards are all of the tools available to the employer that may be used to attract, motivate and
retain employees. Total rewards include everything the employee
perceives to be of value resulting from the employment relationship.
The concept of total rewards has advanced considerably. The power of total rewards is in leveraging the concept as a whole and the individual elements to
attract, motivate and retain talent.
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Advantages of a total rewards Strategy…
• Drive organizational success through greater talent attraction, engagement and retention
• Guide investment decisions for the employer while enabling informed choices for the employee
• Clarify the employer-employee relationship • Build a distinctive employment brand • Increase the return on rewards and create value
for the enterprise
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Employers View… Employee View…
1 Challenging work 1
Base salary
2 Base salary 2
Job security
3 Career advancement 3 Career advancement opportunities
4 Health/Wellness 4 Organization reputation
5 Organization values 5 Convenient work
6 Organization Reputation 6 Learning opportunities
7 Organization Performance 7 Health/Wellness benefits
Views on all employees…
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Views on high potential employees…
Employers View… Employee View…
1 Challenging work 1 Career advancement
opportunities
2 Ability to impact 2
Base salary
3 Career advancement opportunities
3 Job security
4 Base salary 4
Challenging work
5 Organization values 5 Organization
6 Organization performance 6 Learning opportunities
7 Job autonomy 7 Convenient work location
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Developing the Total rewards Strategy…
1. Understand organisational outcomes and the processes and projects which it must deliver;
2. Develop a master scorecard;3. Link the master scorecard to human performance;4. Conduct Job Grading Analysis;5. Define the Employee Value exchange (EVE); and6. Develop the Total Rewards Strategy (TRS).
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Practical Exercise (1)…
Company Expectations Employee Rewards
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…an effective total rewards strategy enables organisations to deliver the
right amount of rewards, to the right people, at the right time, for
the right reason...
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Basic Assumptions of a ‘Performance Motivation’ Model…
• Employees believe that good performance will lead to more pay
• Employees want more pay• Employees do not believe that good performance will
lead to negative consequences• Employees see that other desired rewards besides pay
result from good performance• Employees believe that their efforts do lead to
improved performance
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Bonus Plans – Two Basic Rules…
1. Fund the Pool
2. Split the Pool
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Practical Exercise (2)… Master TRS
Total Rewards Strategy Elements Skill Job Risk Performance
H M L H M L H M L
Compensation • Xxx• xxx
Benefits • Xxx• xxx
Work Life • Xxx• xxx
Professional Development • Xxx• xxx
Career Development • Xxx• xxx
Work Environment • Xxx• xxx
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Practical Exercise (3)… Individual TRS
Total Rewards Strategy Elements Weight ValueCompensation • Xxx
• xxxBenefits • Xxx
• xxxWork Life • Xxx
• xxxProfessional Development • Xxx
• xxxCareer Development • Xxx
• xxxWork Environment • Xxx
• xxx
Employee Name:Job Description:Skills Risk: Job Risk: Performance Risk:
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