1. 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
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2. Total Rewards at InSystems
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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.
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3. 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
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4. Total Rewards in Exchange for Work
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Total Rewards in Exchange for Work
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5. The Total Rewards Dollar
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The Total Rewards Dollar
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6. Influences & Decisions on Base Pay
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Legal
Key
Dimensions
Economic
Pay
Structure
Job Structure
Pay
Fairness
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7. Legal Requirements Legal Requirements for Compensation Human Rights
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Legal Requirements
Human Rights
Legislation
Legal
Requirements
for
Compensation
Pay Equity
Employment/
Labour
Standards
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8. Economic Influences on Pay
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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
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Pay Fairness
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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
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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
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12. Alternatives to Job-Based Pay
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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
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13. Effective Incentive Pay Plans
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Effective Incentive Pay Plans
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14. 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
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15. Benefits and Services Legally Required Optional CPP/QPP Paid Leave
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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
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16. Emerging Benefits (Figure 9.13)
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Emerging Benefits (Figure 9.13)
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17. Selecting Employee Benefits
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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
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18. Communicating Total Rewards
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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
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19. Executive Compensation & Rewards
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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.