Please enable JavaScript.

Coggle requires JavaScript to display documents.

TOTAL REWARD, PROFICIENT INDICATOR: collect, compiles and interpret…

- - - - BENEFITS: tangible service or payment to broad group of employees to cover issue such as retirement, health care, sick pay... & L&D
      - COMPENASATION: all financial returns (beyond any tangible benefit payment or service), including salary & allowances
      - PERQUISITES: compensation provided on an individual basis in the form of good or service e.g. automobile or mobile phone
      - INCENTIVE/PREMIUM: Payment in return for the achievement of specific, time-limited, targeted objective . Often they are calculated as % of base salary. Might be made in lump sum or as ongoing payment over a specific of time
  - - - Entitlement-oriented
        
        A caring, protective feeling
        
        Employee benefits as a condition of employment
        
        benefit increase --> :red_cross: less emphasis on individual contribution & responsibility, :check:more emphasis on the success of the org as a whole
      - Contribution-oriented
        
        more performance-driven
        
        emphasize performance-based pay, incentive & shared responsibility for benefits
    - - INTERNAL EQUITY: fair by relative value to employee's job, helps to ensure legal compliance
      - EXTERNAL EQUITY: fair by performing similar job in other org
- - - - Benefits that are government-provided: are administered and provided directly by the government, usually paid for through taxes.
      - Benefits that are government-mandated: are provided by employers because the law requires them to do so.
      - Benefits that are voluntary or discretionary: provided voluntarily by the employer may not be totally discretionary :!: pressure by employee relation
      - Benefits that are market practice: are offered and adjusted compared to the external market.
      - Tax treatment of benefits: are taxed differently in different countries.
  - - - Needs that are not being met by existing benefits :star: Research new benefits or revise existing benefits.
      - Benefits that are not addressing organizational or employee needs :star: Drop or revise benefits that are not meeting needs.
      - Benefits that overlap each other :star: Revise benefits that overlap or conduct utilization review and keep only the used benefit(s).
      - Benefits that are underutilized :star: Do further research and then drop or revise benefits that are not being used enough.
      - Benefits that are too costly but are heavily used by employees :star: Adopt cost-containment strategies and reevaluate each benefit.
    - - REVIEW ORG STRATEGY: The org market strategy has a direct effect
        
        lead market = extensive benefit packages
        
        lag or match market = simple benefit packages
      - REVIEW ORG'S COMPENSATION PHYLOSOPHY: provide an understanding of how benefits fit into that philosophy
        
        how much can be spent on benefits and their actual impact on the organization’s cash flow?
        
        Benefits must be balanced with the other elements in the total rewards program.
      - ANALYZE THE DEMOGRAPHICS OF THE ORG'S WORKFORCE
        
        benefits plan must address the needs of various categories of employees
      - ANALYSE THE DESIGN & UTILIZATION DATA ON ALL BENEFIT PLANS
        
        Utilization data looks at specific benefits plan usage
        
        based on employee life style and employee mix
  - - - Employee assistance program (EAP): :check: intended to help identify and resolve employee concerns
        
        provide employees with confidential expert advice and support 24 hours a day, seven days a week
        
        Nearly all EAPs are outsourced, and most are priced at a "per capita" = "average per person" rate.
      - Wellness programs :check: intended to promote and support the health, safety, and well-being of employees
        
        programs to help employees stop smoking, diabetes management programs, weight loss programs, and preventive health screenings
  - - - PAYMENT:
        
        by month till death or lumpsum .
        
        colleagues and experts with strong, country-specific expertise must be consulted regarding the organization’s long-term liability :!: due diligence—including consultation with legal and accounting experts—is very important.
      - FIDUCIARY ủy thác RESPONSIBILITY
        
        organizations must be aware of the concept of fiduciary responsibility
        
        one party (for example, the employer) to act in the best interest of another (for example, the employees)
- - - - Single- or Flat-Rate Systems: same rate of pay for each incumbents, regardless of performance or seniority e.g. all factory worker earn the same rate
        :check: Work well in routine, simple jobs, simply implemented and administered
        :red_cross:Does not reflect individual performance, seniority or skill differences
      - Time-Based Step-Rate Systems: the pay rate is based on longevity in the job. Pay increase occur on a pre-determined schedules
        
        the size or timing of increases may vary if performance is substantially above or below standard
        
        requires adequate resources to develop and administer a performance appraisal system and communicate it to employees --> they understand how they can earn performance-based increases
        :check: best suit with routine job where the incumbent's qualification increase with time; reward long term employment
        :red_cross:
      - Performance- or Merit-Based Systems: the individual employee’s performance on the job is the basis for the amount and timing of pay increases
        
        commonly called merit pay or pay for performance (P4P or PfP)
        
        Helps make effective in case of small budget and hire employee at near to pay range minimum
        
        Employee must be explained differences in salary increase & performance appraisal method if it deserved a specific pay increase
      - Productivity-Based Systems pay is determined by the employee’s output. Work best in
        
        Units of output can be measured
        
        The job is standardized, the work flow is regular, and delays are few or consistent
        
        Quality is less important than quantity, or, if quality is important, it is easily measured and controlled.
        
        Costs are known and precise
      - Person-Based Systems employee characteristics, rather than how the job is performed, determine pay
        
        In a knowledge-based system approach --> for compensating learned professions such as scientists or teacher
        
        Skill-based systems: base pay on the number of different skills an employee is qualified to perform
        
        most commonly used in a production environment
        
        Competency-based systems set pay at the level at which an employee can operate in defined competencies (for example, directing or training others)
        
        commonly found when rewarding professional groups of employees
    - - PERFORMANCE PAY by a technique that integrates performance appraisals and pay adjustments.
      - COLA given to all eligible employees without regard to org profitability, employee productivity or other performance factor
      - GENERAL PAY increase given to all employees (or sometime a class of employee) based on local competitive market requirement
      - SENIORITY INCREASE with 2 conditions:
        
        Employee must work for a certain of time period
        
        Automatically increase after a set time of work
      - LUMP SUM INCREASE LSIs or performance bonus = one time payment --> is not impact to other wages and benefits e.g. overtime, shift premium, sick pay...
      - MARKET PAY INCREASE be used to be competitive in attracting new talent or to keep key employees
        
        be added to base pay and sometime called equity increase
    - - HAZARD PAY for increase level of risk employee.
      - TIME-BASED DEFFERENTIAL PAY
        
        SHIFT PAY: if working in less-desirable hours e.g. night shift.
        
        EMERGENCY-SHIFT PAY: industries pay emergency-shift pay when employees work in response to an emergency
        
        PREMIUM PAY: working any of the following (Holidays or vacation days or weekends, For the sixth or seventh day of straight time, After eight hours in a day)
        
        ON-CALL or CALL-BACK PAY: extra pay for working in other shift on the same day
        
        REPORTING PAY: for reporting to work as schedule even no work is available
        
        TRAVEL PAY: hourly payment for traveling time to work assignment
        
        OVERTIME PAY: minimum amount is dictated by legislation
      - GEOGRAPHIC DIFFERENTIAL PAY: based on where employee works. Org needs to tailor C&B program in local market.
        Some reasons:
        
        For labor cost: change base pay structure to cover COLA
        
        To attract worker to certain location: Org pay more for people agree to work in a deterrent places e.g. offshore
        
        For foreign country: base pay plus allowance
      - INCENTIVE PAY to motivate employee to performs at a higher level for high-performer. Theory to reward drive behavior.
        :check: incentive program must be related to aspects of job
        :check: Employee must believe that the goals are achievable
        
        SHORT-TERM: easy to measure but may not have a lasting impact on the overall health of the organization
        
        LONG-TERM: Keep high performers and provide positive outcomes for the organization
        
        INDIVIDUAL TYPE: to improve individual performance
        
        piece-rate system: who produce more earn more
        
        commission
        
        noncash reward program
        :check: most significant impact on productivity
        
        GROUP: when difficult measuring individual performance or need cooperation of the groups
        
        gainsharing plan: any gains above the standard are shared by the group and employee
        
        team bonus: when archiving group goals and objective
        :check: Encourage teamwork
        
        ORG-WIDE to reward overall results
        
        Profit sharing & stock ownership
        
        program tied to org goals
        
        CROSS BORDER CHALLENGES:
        
        any incentive must be culturally appropriate
        
        considerations for HR to address in ensuring equitable, fair, and competitive compensation packages for transferees
  - - - TYPE OF EXECUTIVE PAY
        
        Annual salary: be guaranteed, not linked to performance
        
        Stock option plan: can buy company stock at a pre-determined price for a certain period of years
        
        Stock purchase plan: can buy stock at lower price or without brokerage fees phí môi giới
        
        Restricted stock grants: can not sell the stock in certain period of time --> keep employee stay
        
        Phantom stock: cash reward designed to mimic bắt chước share of stock
        
        Restrict stock units: defer compensation of key executives until after they have retired
        
        Performance grants: stock-based compensation is tied to org performance
        Other benefit and perquisites and a retirement package
      - GLOBAL VARIATION PRACTICES
        
        most shareholders consider an organization’s financial success as the primary indicator of executive performance
        
        But, the org metrics used to evaluate varies country
      - CHALLENGES: reasonable, fair and ethical compensation for executives
        
        if an executives perceived as being overly compensated for providing inadequate nghèo nàn performance?
        
        ask for a good governance and well-established compensation strategies, policies, and practices that are closely aligned with the organization’s overall goals and objectives.
      - HR'S ROLES
        
        communication regarding the benefits, costs, and array of options in launching or improving an executive compensation program- determining what in-house and outside expertise is necessary and sufficient to handle an executive compensation program
        
        ongoing assessment of the existing program’s effectiveness to determine if changes should be made
    - - STRAIGHT SALARY- are the least used compensation package- when: sales spends most of time to serve customer, difficult to measure sales performance, impossible to separate one individual efforts, long sales cycle
      - STRAIGHT COMMISSION
        
        entire compensation based on commission
        
        when: org's objective are to motivate sales volume, holding down the cost of sales is important, competitor provides same practices
      - SALARY PLUS COMMISSION and/or BONUS is the most widely used approach for reasons
        
        sales to be motivated by financial gain
        
        directly reward behavior that best support org strategy
        
        readjust the plan to fit current conditions
        
        competitor usually use the similar practice
- - - - Content: KSA
      - Method: observation, interview, open-ended questionnaire, Highly structure questionnaire, work diary or log
    - - Job-content-based evaluation
        
        Non-quantitative:
        - Job ranking: The simplest method for small org
        - Job classification: relies on similar job titles and fduties
        
        Quantitative:
        - Point-factor system: Points are assigned to the compensation factors
        - Factor comparison: Combination of the ranking & point method
      - Market-based evaluation :check: determines the relative worth and pay structure of different jobs based on their market value or the going rate in the market place
        
        Remuneration survey: Internal & External (age, wright, data)
        
        Benchmarking
        
        Others
      - Global market survey consideration:
        
        What are the best sources of salary data?
        
        How much information is available?
        
        How frequently does the market change?
        
        Does the data for the jobs available match or compare to the ones being compared
    - - PAY RATE
      - PAY GRADES:
        
        group jobs that have approximately the same relative worth in an organization.
        
        Pay the same rate or within the same pay range.
      - PAY RANGES:
        
        sets the upper and lower limits of compensation for employees whose jobs fit within that particular grade.
        
        Market date from surveys used to determince a midpoints
      - COMPA-RATIO
        
        compa-ratio (compensation ratio) metric determine how actual wages match, lead, or lag the target market.
        
        Allows managers to consider if employees are being paid appropriately on the basis of their skills, experience, and performance.
        
        COMPA-RATIO = PAY RATE/MID POINTS
        
        :check:< 1.00 occur when employee: New to the job, poor performer, lag org regard to pat
        
        :check: > 1.00 occur when: Lead org regard to pay, manager are not following the salary policy, long-tenured and/or high performers.
      - BROAD BANDING/ SALARY BAND combine 2 or more salary grades to create larger range and give people wide latitude to move within their job without outgrowing the pay scale
        :check: for large & hierarchical org tent to flatten structure & remove levels of management
        :red_cross: not work in org having large number of professionals e.g. having career ladders cosisting of many levels
        
        Advantage
        
        Wider range than traditional pay range
        
        Reduces number of job grades
        
        Reduces the number of reporting level
        
        More autonomy to line managers in salary & promotion decision
        
        Enhances employee mobility (can transfer without requiring a change in assigned pay range)
        
        Disadvantage
        
        Reduces the value of ranges as parameters for governing pay rates
        
        Affords less control for the organization in salary and promotion decisions
        
        no mechanism to tie the salary growth of individual employees
        
        hard to justify salary differentials if two employees are in the same broadband doing similar work
        
        Reduces the opportunity for promotion and accompanying job title and base salary changes --> can lead to retention rate
        
        Risks divergence from market pay practices; paying too little relative to competitors --> can higher turnover rate