Total Reward - MBR&HRSL
3
Copyright - Malcolm Bond - Aug 05 Change management, communication, consultation and negotiation Balancing the needs of cost and performance with those of talent recruitment, development and retention TOTAL TOTAL REWARD REWARD Framing Total Reward within the Business Business strategy People strategy Total Reward strategy What are the organisational needs ? What are the employees’ needs ? Engagement Alignment Employees’ values, expectations, preferences and demographics Organisation’s values, budgets, performance demands, and talent requirements Implement- ation Business performance Statutory benefits Non- statutory benefits Annual variable pay; short-term incentives Long-term incentives Guaranteed cash Non-financial rewards MB Reward & HR Solutions People performance & contribution
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Transcript of Total Reward - MBR&HRSL
Copyright -Malcolm Bond - Aug 05
Change management,
communication, consultation and
negotiation
Balancing the needs of cost and performance with those of talent
recruitment, development and
retention
TOTALTOTAL
REWARDREWARD
Framing Total Reward within the Business
Business strategy
People strategy
Total Reward strategy
What are the organisational needs ?
What are the employees’ needs ?
Engagement
Alig
nmen
t
Employees’ values, expectations, preferences and demographics
Organisation’s values, budgets, performance demands, and talent requirements
Implement- ation
Business performance
Statutory benefits
Non- statutory benefits
Annual variable pay; short-term incentives
Long-term incentives
Guaranteed cash
Non-financial rewards
MB Reward & HR
Solutions
People performance
& contribution
Total Reward structureMB Reward
& HR Solutions
Typical examples Reward typeCareer growth; learning and development
Work / life balance
Internal and external pay equity; 'equal pay'
Work quality
Working environment
Affiliation, organisational reputation and brand
Employer’s National Insurance Contributions (NIC) Statutory benefits
Pension / retirement provision
Life Assurance
Disability insurance (LTDB / IP / PHI)
Private medical insurance (PMI)
Critical illness insurance
Other insurances (dental, optical, holiday / travel, etc.)
Car and fuel benefits / cash alternatives
Voluntary benefits (discounts, cashbacks, vouchers, etc.)
Benefit allowances (e.g. Flex plan)
Loans
Executive share options
Company share option plans (CSOPs and EMIs)
Restricted shares / performance shares
Discounted share purchase plans
Share acquisition plans / SIPs
Sharesave plans / SAYE
Sales incentive bonus plans
Sales commission plans
Annual incentive / bonus payments
Profit share / profit-related payments
Other contractual cash allowances
Other fixed payments (shift pay, etc.)
Basic salary / base pay (including holiday pay)
Total Direct Compensation To
tal R
ewar
d
Non-financial rewards
Non-statutory benefits
Reward category definitions
Total Reward
Total Remuneration +
Long-term incentives (LTI)
Long-term cash incentive plans
Intr
insi
c,
inta
ngib
le
Rew
ard
elem
ents
to
whi
ch a
cur
renc
y va
lue
can
be
appl
ied
Mot
ivat
iona
l, en
gage
men
t an
d en
able
men
t va
lue
wit
hin
orga
nisa
tion
Tota
l C
ash
Total Cash
Tota
l Rem
un
erat
ion
+
Tota
l Rem
un
erat
ion
Tota
l Dir
ect
Com
pen
sati
on
Extr
insi
c, t
angi
ble
Annual variable pay / short-term incentives (STI)
Guaranteed cash
Total Remuneration
Total Reward structure including extrinsic non-cash reward items
MB Reward & HR
SolutionsTypical examples Reward typeCareer growth; learning and development
Work / life balance
Internal and external pay equity; 'equal pay'
Work quality
Working environment
Affiliation, organisational reputation and brand
Business travel opportunities
Childcare / creche facilities
Gymnasium / health club
Sports & Social club
Telecommuting / flexible working
Recognition award programmes
Holidays
Employer’s National Insurance Contributions (NIC) Statutory benefits
Pension / retirement provision
Life Assurance
Disability insurance (LTDB / IP / PHI)
Private medical insurance (PMI)
Critical illness insurance
Other insurances (dental, optical, holiday / travel, etc.)
Car and fuel benefits / cash alternatives
Voluntary benefits (discounts, cashbacks, vouchers, etc.)
Benefit allowances (e.g. Flex plan)
Loans
Executive share options
Company share option plans (CSOPs and EMIs)
Restricted shares / performance shares
Discounted share purchase plans
Share acquisition plans / SIPs
Sharesave plans / SAYE
Sales incentive bonus plans
Sales commission plans
Annual incentive / bonus payments
Profit share / profit-related payments
Other contractual cash allowances
Other fixed payments (shift pay, etc.)
Basic salary / base pay (including holiday pay)
Reward category definitions
Mot
ivat
iona
l, en
gag
emen
t an
d en
able
men
t va
lue
wit
hin
orga
nisa
tion
Intr
insi
c,
inta
ngi
ble
Annual variable pay / short-term incentives (STI)
Total Remuneration +
Tota
l Rew
ard
Non-statutory benefits Total Remuneration
Tota
l Rem
un
erat
ion +
Long-term incentives (LTI)
Total Direct Compensation
Tota
l Rem
un
erat
ion
Rew
ard
elem
ents
to
whic
h a
curr
ency
val
ue c
an b
e ap
plie
d
Non-financial rewards Total Reward
Tota
l Dir
ect
Com
pen
sati
onGuaranteed cash
Tota
l C
ash
Extr
insi
c, t
angi
ble
Long-term cash incentive plans
Total Cash
