linking strategy and reward -...
TRANSCRIPT
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LINKING STRATEGY AND REWARD
Cathy Hendry
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WHAT WE WILL COVER TODAY
+ Introduction to the Total Rewards Model
+ Key elements to a Reward Strategy
+ Insight into pay and benefits in the sector
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WorldatWork Total Rewards Model
Remuneration
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“ Making a Difference”Strategies to attract, motivate and retain employees
Compelling Future
Vision and Values
Organon image & reputation
Development & career opportunities
Community focus
Employment brand
Pay and Rewards
A rewards framework across Organisation that
reinforces high performance
recognises achievement
is transparent, fair and consistently applied
Total remuneration
Benefits
Recognition & celebration
Engaged Staff
Positive culture
People focus
Leadership
Colleagues
Trust & commitment
Open communication
People Performing Positively
Performance management at all levels
Achieving Results
Living the Values
Development & training
Career enhancement
Example Total Rewards Framework
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THE REMUNERATION FRAMEWORK
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Context: Remuneration and Rewards
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Pay structure options
Simple job matching
• E.g. match to #212 Financial Acct. Survey A
Enhanced job matching
• E.g. match to average of Financial Acct, Survey A; Group Acct, Survey A UQ; Qual Acct, Survey B UQ
Broadbanding / classification
• In this model jobs are assigned to bands using descriptors for each band
Banding JE Based
Narrow grade structure
Job evaluation points
• e.g.
• 150 pts = $31,400
• 151 pts = $31,500
• The points in this model are based on job evaluation total points (sum of points in all factors)
F Top Executive
ESenior Management
Snr Prof/Specialist
DMiddle Management
Professional Advisor
CSupervisory
Technical Specialist
B Technical Admin
Skilled Operator
A Clerical/ Semi-Skilled
Jobs assigned to bands
based on points
e.g. 150-160 e.g. 100-200
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+ Understand your relevant markets
+ Identify appropriate sources for information
+ Understand the market information
+ Don’t hard wire market linkage into policy or
employment agreements
Link to external market
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A Balancing Act
MARKET RATES AFFORDABILITY
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Clear Vision / Mission
• Clearly articulated purpose
• Strategic Plan
Robust Business Planning
• Annual business plan developed from strategic plan
• Balanced scorecard goals
Cascaded Goals and Objectives
• Clearly articulated expectations (results and competencies)
• BU, team and individual
Proactive Performance Management
• People Management
• On-going coaching
• Consequences of performance or non-performance
• Exit?
Rewards for Performance
• Pay, Recognition, Promotion
• Justifiable / defensible decisions based on performance evidence
• Differentiated for highest performing individuals
Linking Pay to Performance
IDEAL CULTURE
(empowered workforce, values-based, trusting, transparent, credible, responsive)
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© 2016 Strategic Pay Limited
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HOW DOES THE NFP SECTOR PERFORM WHEN IT COMES TO REWARD?
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0
100
200
300
400
500
600
700
FR
NZ
D T
housands
General Market
Private Sector
Public Sector
Not for Profit
General staff Mid management Snr management CEO & Snr Exec200 – 400 pts 400 – 800 pts 800 – 1200 pts 1200 – 1600 pts
Actual Pay Practices: Sectors
Source: NZ Remuneration Survey Sep 2016 / NFP 2016
28%
-11%8%
-6%
-13%
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73%
65%
68%
62%
67%
78%
48%
76%
General Market
Not for Profit
Top Benefits Offered 2015/16
(48%)
Flu Vacs
Tool of trade vehicle
Prof Ass Fees
Car Park
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Work / Life Balance Initiative
98% NFP RESPONDENTS OFFER
SOME FORM OF WORK/LIFE
BALANCE INITIATIVE
COMPARED TO ONLY
82% GENERAL MARKET
ORGANISATIONS
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Turnover
Voluntary Turnover (median)
12.3% NFP Market
13.1% General Market
13.9% Private sector
12.0% Public sector
Involuntary Turnover (median)
0.5% NFP Market
1.9% General Market
2.3% Private sector
1.8% Public sector
Source: HR Metrics Survey2016
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Absenteeism
Average # days lost to absenteeism (median per employee)
3.0 days NFP Market
4.0 days General Market
4.0 days Private sector
5.0 days Public sector
Overall number of days lost per year (median)75 days NFP Market
294 days General Market
327 days Private sector
708 days Public sector
Source: HR Metrics Survey 2016
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Final Thoughts
+ Don’t forget to communicate your policies
+ Consider Transparency in the context of your
organisation.
+ Fairness and Equality are key
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32%
11%
3%
20%
13%
5%
5%1,175
Organisations
168,537Employees
46% Private
34% NFP
20% Public
OUR DATABASE
3%
4%
2%
2%
THANK YOU FOR YOUR TIME
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Thanks for joining us!
QUESTIONS OR COMMENTS?