1. Topical reward issues for the second
half of 2013
by Toronto Training and HR
June 2013
2. CONTENTS
5-6 Definitions
7-8 Philosophy of reward management
9-11 Total reward
12-13 Conducting a compensation impact analysis
14-15 The model of effort-reward imbalance
16-17 Drill A
18-21 Why have a reward strategy?
22-26 Developing a reward strategy
27-28 Drill B
29-30 Job evaluation
31-36 Recognition
37-38 Applying a reward and recognition program
39-40 The four Ps of reward
41-48 Trends in 2013
49-50 Conclusion and questions
Page 2
4. Page 4
Introduction to Toronto Training
and HR
Toronto Training and HR is a specialist training and
human resources consultancy headed by Timothy Holden
10 years in banking
10 years in training and human resources
Freelance practitioner since 2006
The core services provided by Toronto Training and HR
are:
Training event design
Training event delivery
Reducing costs, saving time plus improving
employee engagement and morale
Services for job seekers
8. Philosophy of reward management
• Strategic sense
• Total reward
• Differential reward according
to the contribution
• Fairness, equity, consistency
and transparency
Page 8
15. The model of effort-reward
imbalance
• Transmitter systems
• Imbalance is maintained under
certain conditions
• The imbalance between high
effort and low reward
increases the risk of reduced
health
• Overcommitted people are at
increased risk of reduced
health
Page 15
19. Why have a reward strategy? 1 of 3
• Can play a central role in
shaping reward policies and
practices when aligned to the
organization‟s culture, values
and objectives
• Communicate and reinforce
what the organization wants to
and wants not to reward
• Drive change on pay, benefits
and wider reward so that it is
aligned
Page 19
20. Why have a reward strategy? 2 of 3
WHY DO THEY NOT DELIVER?
• Focus on best practice
• Focus on design at expense of
shareholders and implementation
• Focus on „what‟ outcomes can
drive unwanted behaviours
• Changes not aligned to the
organization‟s culture and values
• No clear means of measuring or
evaluating success
Page 20
21. Why have a reward strategy? 3 of 3
WHY DO THEY NOT DELIVER?
• Skills and abilities of line
managers in implementation
• Perceived as a HR initiative and
not driven by top leadership
• Insufficient two-way
communications
• Attitudes of employees, line
managers and the top team
Page 21
23. Developing a reward strategy 1 of 4
• Organizational strategy
• HR strategy
• Reward strategy
Page 23
24. Developing a reward strategy 2 of 4
• STRUCTURE AND CONTENT OF A
REWARD STRATEGY
• Environmental analysis; macro
and micro
• Gap analysis
• A broad-brush approach
• Specific initiatives
Page 24
25. Developing a reward strategy 3 of 4
• MAJOR STRATEGIC REWARD
DECISIONS
• What to pay employees
• How to pay individual employees
• What benefits to offer
• How to construct recognition
programs
Page 25
26. Developing a reward strategy 4 of 4
• Phase One-diagnosis and
specification
• Phase Two-design and
stakeholder input
• Phase Three-test and validate in
preparing for implementation
• Phase Four-implement,
communicate and evaluate
Page 26
32. Recognition 1 of 5
• Types of recognition
• Why does it matter today?
• Sustaining a culture of
recognition
• The business case
• Anticipated benefits
• Program effectiveness
• Measurable impact
Page 32
33. Recognition 2 of 5
PROGRAMS
• Adoption
• Type
• Standardization
• Age
• Delivery
• Design and reality
• Activities
Page 33
34. Recognition 3 of 5
PROGRAMS (CONTINUED)
• Ensure the program delivers
value to its employees
• Resolve the tension between
manageability and
measurability
• Evolve recognition so that it
becomes a part of the culture
Page 34
35. Recognition 4 of 5
RECENT RESEARCH
• It‟s there but not enough
people know about it
• HR fails to effectively enable
recognition
• Highly effective programs
result in lower turnover
• Many employees state they are
recognized annually or not at
all
• Whilst many employees crave
recognition specificity and ease
these are not priorities for HR
36. Recognition 5 of 5
RECENT RESEARCH (CONTINUED)
• Senior leaders are not as
important to recognition as HR
thinks
• Programs help create a
recognition culture
• Failure to customize external
programs or integrate software
comes at a price
• Programs need to be refreshed
frequently
Page 36
38. Applying a reward and recognition
program
• Create an award program for peer
recognition of a job well done or for
going above and beyond in their
work
• Produce a monthly or quarterly
newsletter
• Plan an annual firm-wide retreat
• Host employee outings
• Recognize your employee‟s family
including children and pets
Page 38
42. Trends in 2013 1 of 7
NON TRADITIONAL REWARD
PROGRAMS
• Faster ramp-up cycles in
keeping events relevant
• Use of hybrid and virtual
formats
• Decision making pushed up the
change of command
• “Above and beyond”
behaviours
• Acknowledge performers who
are adaptable, collaborative
and innovative
43. Trends in 2013 2 of 7
BUDGETARY PESSIMISM
• Global economic difficulties
• “Discount fever”
• Changes in vacation choices
• Cutting back on gifts but
increased usage of gift cards
• Are gift cards right for your
organization?
Page 43
44. Trends in 2013 3 of 7
TECHNOLOGY
• Faster broadband speeds
• Cost-effective apps
• Mobile access
• Tablet applications
• Social media
Page 44
45. Trends in 2013 4 of 7
GAMIFICATION
• Incentives
• Virtual currencies
• Learning & development
Page 45
46. Trends in 2013 5 of 7
NON-CASH REWARDS
• Meaningful and challenging
work
• Trustworthy and transparent
performance management
process
• Praise
• Recognition
Page 46
47. Trends in 2013 6 of 7
WELLNESS
• Exercise
• Sleep
• Diet
• Alcohol and tobacco
• Mental health
Page 47
48. Trends in 2013 7 of 7
CSR
• Ethics and morals
• Sustainability
• “Green”
• Climate change and carbon
footprint
Page 48