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Strategic Reward Management (Strategic Reward Management (Aligned…
Strategic Reward Management
Reward Management + HRM Model
Remuneration (pay)
Policies and Systems
Strategic Reward Management
Total rewards systems (intrinsic + extrinsic rewards)
Total Reward Management
- a holistic approach to reward management that combines intrinsic and extrinsic rewards both financial and non-financial
Extrinsic
Financial / remuneration (cash, superannuation)
Developmental (support to do further study, career growth)
Social (organisational culture and support)
Intrinsic (psychological rewards)
Job content
Job challenge
Responsibility
Autonomy
Variety
Feedback
Need to understand meaning of rewards overtime - older vs younger workers
Purpose of Rewards
Organisation's View
Attract & retain staff
Motivate & align behaviours
Are cost effective
Are equitable and legal so there is transparency and fairness
Lead to competitive advantage
Individual's View
Equitable & transparent
Alignment with personal values/ evaluations
Motivational and that give feedback (E.g. recognise effort)
Valued (by them)
Strategic Reward Management
Aligned (vertical) with strategic values and direction of the organisation
Designing reward systems
Systematic and integrated (horizontal)
Job (importance, contribution)
Person (skills and attributes)
Performance (how much to reward)
Components of a reward system
Remuneration policies and systems
Total reward systems (intrinsic and extrinsic rewards)
E.g. Westpac's Benefit Package
Intrinsic Factors
Inclusive culture
Job quality and challenge
Career development
Extrinsic Factors
Leave including grandparental leave, sporting leave, unpaid career break leave
Share plan
Wellness/ flexibility
Designing a total rewards package so it is strategic
Align rewards to strategy
May develop a rewards philosophy (transparency, fairness, aligned to required competencies/ behaviours)
Reward strategy statement
Summary
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Rewards
Reward systems are concerned with rewarding people for directing their behaviour towards achieving organisational strategies
A 'total rewards' approach provides a holistic and strategic approach to rewards
Rewards systems are part of an integrated system that aids recruitment, retention and engagement - closely related to performance management
Motivation
Theories of Motivation
Equity Theory
Distributive and procedural justice
Includes issues of fairness, transparency and perceived equity in the calculation and distribution of rewards
Reinforcement Theory
Assumes a fairly simple reward/ performance relationship
Related to Hard HR
Reward soon after performance
Focuses on extrinsic needs
Work Motivation Theory
It is all about making sure intrinsic needs are met
Participation
Team working
Good quality work and work design
Skills formation
Growth
Meaningful incentives
Authentic organisational values communicated through intensive HR practices
Links back to Total Rewards Strategy and intrinsic rewards
Rewards addressing discrimination and diversity issues
Gender Pay Gap
Deloitte will address the 10.8% gender pay gap in their business
They are doing this through rewards and compensation practices
Addressing the "pregnancy pay penalty"
Benefits for a Diverse Workplace (PwC)
Maximise flexibility
Buy and sell annual leave
Health care plan (USA)
Dental insurance
Travel insurance
Cycle to work
Summary - Motivation
Motivational theories give us an understanding of individual values and job satisfaction underpin an understanding of reward management
It provides us with insight into the psychological processes through motivation