This is an important aspect of HR especially in a Current Scenario when talent engagement is very important and Reward management plays a vital role in it.
3. Components of Total Rewards
Financial Rewards and Benefits
Base Pay
Contingent Pay ( for Performance or Contribution)
Variable Pay (Cash bonuses)
Share ownership
Benefits
Non Financial Rewards
Recognition
Responsibility
Meaningful Work These arising from the
work and work environment
itself
Autonomy
Opportunity to use and develop skills
Career Opportunities
Work Life Balances
4. Factors Affecting Levels of Pay
Factors Influencing Job Values
Intrinsic Values
Internal Organization Relativities.
External Job Market Relativities.
Inflation and Market movement
Business or Financial circumstances
5. Rewards As Motivator
In any work environment Rewards (both Financial
and Non Financial) can act as a motivator.
Financial rewards:
Effectiveness of money as a motivator.
Reasons why people are satisfied or dissatisfied with their
rewards.
Criteria which should be used when developing a financial
reward system.
Non Financial rewards:
Can be focused on the needs most people have although to
different degrees for achievement, recognition, responsibility,
influence and personal growth.
6. Reward Policies for New & genuine Start Ups
Where to start:
Attract and keep people anxious to make organization grow and
flourish.
Reward the risk of coming into a new venture with high rewards and
generally a share in the business if the risk pays off.
Provide a sensible basic salary that is reasonably competitive with
the market for most staff and highly competitive if rare skills have to
be brought in.
Lock people to give business stability- with share schemes or profit
sharing for everyone.
Make a LEAN organization until some “FAT” comes in the systems.
Payout bonuses or provide non-cash rewards when key milestones
in the business plan are successfully achieved.
Improve on office culture and ambience.
7. Diagnostic Check list
Is there a clear and articulated link between reward
strategies and HR strategy on:
Organization design.
Recruitment : a reasonable attractive total package.
Training: rewarding skills acquisition and use.
Development: rewarding the behaviors or competencies
associated with good performance and continued learning.
Performance Improvement.
Effective team/group working.
Promotion: rewarding the acceptance and successful delivery
of greater responsibilities.
Reinforcing loyalty, integrity and commitment
8. Diagnostic Check list
Is there a strategy for ongoing reward management
which :
A. is based on organization’s:
Mission and values.
Culture.
Current and future needs.
B. Staff at all levels understand, at least in outline and believes to
be fair and rational.
C. Provides for a flexible response when different parts of the
organization have different needs or face different pressures.
9. Diagnostic Check list
What is the policy on levels of rewards,
A) the chosen place in a well- defined, surveyed and comparable pay
market for different grades, levels and specialisms.
B) the need to attract and retain high quality staff.
C) the need for stability and sustained staff commitment?
Is there a consistent method of progression pay,
according to:
A) length of service.
B) experience (how is this assessed?)
C) performance or contribution
D) competency acquisition and use;
F) skill?
10. To have a detailed discussion
CONTACT:
NILESH KUMAR
+91-997181-1300
NILESHKUMAR25@GMAIL.COM