9 6 Total Rewards C H A P T E R Training Employees What Do I Need to Know? C H A P T E R 1. Discuss how to link training programs to organizational needs. 2.  Explain how to assess the need for training. 3.  Explain how to assess employees’ readiness for training. Describe how to plan an effective training program. Compare widely used training methods. Summarize how to implement a successful training program. Evaluate the success of a training program. 8.  Describe training methods for employee orientation and diversity management. Total Rewards © 2005 McGraw-Hill Ryerson Ltd.

Total Rewards at InSystems 2 of 19 Total Rewards at InSystems Anything that employees take into account when considering the value of working at InSystems is part of the total rewards package. Vice-President of HR, Laurie McRae put a process in place to re-examine everything that comprised the employee value proposition to ensure compensation and rewards are managed as a portfolio. © 2005 McGraw-Hill Ryerson Ltd.

3 of 19 Introduction Total rewards is a comprehensive approach to compensating and rewarding employees Total compensation includes all types of financial rewards and tangible benefits and services employees receive as part of their employment Direct compensation Indirect compensation © 2005 McGraw-Hill Ryerson Ltd.

Total Rewards in Exchange for Work 4 of 19 4 of 21 Total Rewards in Exchange for Work © 2005 McGraw-Hill Ryerson Ltd. .

The Total Rewards Dollar 5 of 15 4 of 21 The Total Rewards Dollar © 2005 McGraw-Hill Ryerson Ltd. .

Influences & Decisions on Base Pay 6 of 19 Legal Key Dimensions Economic Pay Structure Job Structure Pay Fairness © 2005 McGraw-Hill Ryerson Ltd.

Legal Requirements Legal Requirements for Compensation Human Rights 7 of 21 7 of 19 Legal Requirements Human Rights Legislation Legal Requirements for Compensation Pay Equity Employment/ Labour Standards © 2005 McGraw-Hill Ryerson Ltd.

Economic Influences on Pay 8 of 19 8 of 21 Economic Influences on Pay Product Markets Pressure to be globally competitive Increases in employees’ pay need to be linked to increases in productivity Pay Level: Deciding What to Pay May pay at, above, or below the rate set by market forces Organizations must evaluate pay as an investment that can generate returns in attracting, retaining, and motivating © 2005 McGraw-Hill Ryerson Ltd.

9 of 19 7 of 16 7 of 21 Pay Fairness © 2005 McGraw-Hill Ryerson Ltd.

10 of 19 8 of 21 Job Structure Job evaluation considers the relative contribution each job makes to the organization’s overall performance An administrative procedure for measuring the relative internal worth of jobs Uses compensable factors i.e. the characteristics of a job that the organization values and chooses to pay for e.g. Skill, Effort, Responsibility, Working Conditions May focus only on key jobs © 2005 McGraw-Hill Ryerson Ltd.

11 of 19 8 of 21 Pay Structure Pay structure involves putting together decisions about how much to pay (pay level) and the relative value of each job (job structure) Pay rates i.e. of key and nonkey jobs Pay grades i.e. group of job having similar worth or content Pay ranges i.e. within a particular pay grade or band © 2005 McGraw-Hill Ryerson Ltd.

Alternatives to Job-Based Pay 12 of 19 8 of 21 Alternatives to Job-Based Pay Broadbanding may provide greater flexibility by reducing the number of levels in the organization’s job structure Creates broader groupings of jobs i.e. reduces layers Competency-based pay systems are pay structures that set pay according to the employees’ levels of skill or knowledge and what they are capable of doing Can encourage a climate of learning © 2005 McGraw-Hill Ryerson Ltd.

Effective Incentive Pay Plans 13 of 19 9 of 21 Effective Incentive Pay Plans © 2005 McGraw-Hill Ryerson Ltd.

Types of Incentive Pay Piecework Rates Standard Hour Plans Merit Pay Individual Group Organizational Piecework Rates Standard Hour Plans Merit Pay Performance Bonuses Sales Commissions Gainsharing Group Bonuses & Team Awards Profit Sharing Stock Ownership Balanced scorecard © 2005 McGraw-Hill Ryerson Ltd.

Benefits and Services Legally Required Optional CPP/QPP Paid Leave 13 of 21 15 of 19 Benefits and Services CPP/QPP Employment Insurance (EI) Workers’ Compensation Minimum vacation Paid holidays Paid Leave Group Insurance Medical Life Disability Retirement Plans Family-Friendly Other Legally Required Optional © 2005 McGraw-Hill Ryerson Ltd.

Emerging Benefits (Figure 9.13) 16 of 19 14 of 21 Emerging Benefits (Figure 9.13) © 2005 McGraw-Hill Ryerson Ltd. .

Selecting Employee Benefits 17 of 19 15 of 21 Selecting Employee Benefits Flexible Benefits Offers employees a set of alternatives from which then can choose the types and amounts of benefits they want Advantages Employees become more aware of value Each enable matches needs to offerings Disadvantages Higher administrative costs May increase costs to the organization © 2005 McGraw-Hill Ryerson Ltd.

Communicating Total Rewards 18 of 19 16 of 21 Communicating Total Rewards Comprehensive communication strategy is needed to achieve objectives Focusing employees on organizational goals Attracting and retaining employees Creating a motivating environment Managers play a significant role Employers should combine several media © 2005 McGraw-Hill Ryerson Ltd.

Executive Compensation & Rewards 19 of 19 18 of 21 Executive Compensation & Rewards Link between organization’s performance and executive compensation Base Pay Incentives Short-term e.g. bonuses based on profits Long-term e.g. stock options, and stock purchase plans Ethical issues © 2005 McGraw-Hill Ryerson Ltd.