Embed Size (px)
DESCRIPTION
Citation preview
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
1
TOTAL REWARDS PLANS
Adapting, Adopting or Re-design
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
2
AGENDA
Purpose of the Presentation
Alternative compensation Approaches
Total Rewards Philosophy Review
Compensation- Current State/Future State
Building a Compensation Structure
Future Trends and Future Plans
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
3
ALTERNATIVE APPROACHES Developed a Total Rewards Philosophy
Re-examined current situation Reviewed recent market studies
Hired compensation consultant
Reviewed internal processes Job evaluation methodology
Defined our desired future state
Determined what to focus on first
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
4
PHILOSOPHY GOALS Reinforce the WSSC’s Mission, Vision, Core Strategies, and
Core Values
Increase accountability by offering more rewards to top performers
Attract, hire and keep employees
Better manage dollars to reward employees
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
5
TOTAL REWARDS PHILOSOPHY
Total Rewards include:
Pay or compensation
Benefits
Employee recognition
Career opportunities
Opportunity to work for an organization with an important mission
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
6
TOTAL REWARDS PHILOSOPHY
Compensation piece of the Total Rewards Philosophy
states :
Performance based pay system
Compare salaries internally and externally
Target compensation positioning in the market
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
7
WHY DO WE NEED TO DO THIS? To be competitive with the local area especially with jobs that
are in high demand and low supply i.e. Engineers
Allows us to hire and retain employees who will be replacing our retirees
• Replacing approx. half of our workforce in the next 5-10 years
New generation in the workforce concerned more with the salary than healthcare benefits & retirement plans
World Class organizations use a market based system
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
8
CURRENT STATE FUTURE STATE Structure is built from point factor
Hiring many new employees close to the max of the range Does not allow flexibility in hiring “high
demand/low supply” jobs
Promotional increases move employees closer to the maximum of the pay grade
Perception employees leave for higher pay No documentation to support
No pay cuts
Structure is built from market data
Retains and attracts employees Allows flexibility in hiring “high
demand/low supply” jobs Strengthen our competitive position
Provides flexibility in rewarding performance
HR will track exit data
COLA will not go away
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
9
GAP ANALYSIS: Between current reward practices / strategy and industry best practices
Structure alternatives Built from market data
Our market includes: Industry average
Market Leader
Market Follower
Focus groups Conducted 15 focus groups- 150 employees
10% of the organization’s population
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
10
Review and update all of the job descriptions with the departments
Market price all of the benchmark jobs
Build structure from the benchmark jobs market data
Slot the non-benchmark jobs into the structure
Internal audit of job slotting
Assess employees’ salaries against the new structure
Propose new structure and implementation plan
CLOSING THE GAP: Re-design, Adapt or Adopt
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
11
LEGAL and COST considerations Alignment with Talent Acquisition, Retention, Performance
Management and Succession Management
Updated job descriptions
Financial impacts
• Some employees will no longer be maxed out
• Some employees may be red-circled
• Market adjustments
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
12
FUTURE TRENDS & FUTURE PLANS Move forward with next steps
Review job descriptions
Salary Survey
Best Practices
Variable compensation
Periodic updates
