1. Pay People Right Zingheim & Shuster Chapter 11 Rewarding Scarce Talent

2. Three Approaches Commodity Total Pay Total Rewards

3. Commodity Solution Bought and sold at a stated price –Pork bellies, corn, beans Some companies (I.e., company leaders) see talent as a commodity Practices –Sign-on bonus –Referral awards –Retention awards –Counter-offers

4. Total Pay Solution Reliance on total pay if other components are weak Flexibility and broad guidance for pay Cash variable pay –Scarcity changes –Special awards –Stock Options Recognition Benefits

5. Total Reward Solution “Big Six” Practices “Five Commitments” Key: Great companies are not in the business of buying talent Individual Growth Positive Workplace Compelling Future

6. Strategic Valuing Top 10 – 20 percent identified and looked after Workforce Scorecard Model –A, B, C positions –A, B, C contributors