evolving total rewards - hrpa · pdf file · 2017-07-07evolving total rewards....

Evolving Total RewardsFind, Keep & Reward The Talent You Need

Introduction• Director of HR & Total Rewards

Solutions at The Talent Company• Our Mandate:

Help organizations Find, Keep, Reward & Transition the right talent

• We design & deliver practical & effective HR, Talent & Total Rewards strategies, programs & processes

What We’ll Cover Today

Understanding Total Rewards

The Right Mix of Total Rewards Trending Practices

Practical Tips & Techniques Recommendations

What Is Total Rewards?

Total Rewards

Compensation Health & Wellness

Financial Security

Retirement & Savings

Life Changes & Challenges

Professional Development

Defining Compensation

• Salary/Regular Wage• Bonuses/Incentives• Overtime• Vacation• Personal Time Off

Bonus versus Incentives

Bonuses• Tied to Group/Organizational results• Discretionary• Goals may/may not be pre-communicated & knownIncentives• Tied to Group/Organizational results• Formulaic• Goals are pre-communicated & known

Defining Total Rewards

Total Rewards

Compensation Health & Wellness

Financial Security

Retirement & Savings

Life Changes & Challenges

Professional Development

Defining EVP

Great Job

Great Rewards

Engaged & Retained Employee

Great Company

Effective Total Rewards• Aligns with your organization’s mission• Ensures you find, keep, reward & engage

the right talent• Ties rewards to business strategy & results• Drives team & individual performance• Understood by all employees

Effective Total Rewards -Challenges

• Activity led by technical subject matter experts• Organization’s mission or goals not clear• Conflicting goals• Metrics to measure/drive performance not

established• Rewards practices are designed

to be efficient not effective• Volume of work• Team capability

Designing Total Rewards

Compensation/Total Rewards Philosophy

• 90% Have a compensation/total rewards philosophy

• 60% Communicate philosophy in writing

• 30% Communicate philosophy effectively

Defining Your Total Rewards Philosophy

Total Rewards Perspectives

Traditional Meritocracy

Purpose-Driven Teal

Traditional Perspective• Defined by:

• Tenure/seniority or skill-based pay• Strict job structures and hierarchies• Base Pay + Bonus

• Pros:• Clear rules• Easy to administer • Effective cashflow management

• Cons:• Sense of entitlement can develop• Demotivating• Limited flexibility

Meritocracy• Defined by:

• Pay for performance• Employee evaluations and/or rankings based on past

performance• Base Pay + Variable Incentives

• Pros:• Rewards results• Aligns payouts to company performance• Allows for discretion/flexibility

• Cons:• Complex/often poorly administered• Personal opinion/bias can have a bigger impact• Top talent conundrum

Purpose-Driven Approach• Defined by:

• Focused on common purpose or autonomy, mastery & self-direction• Objective is to remove money as a behaviour driver• Base Pay + (sometimes Group/Organizational Bonuses)

• Pros:• Focuses work effort• Increases engagement• Motivating

• Cons:• Not compatible with rigid or command/control environments• Requires strong culture to implement• May not appear market competitive

Teal Philosophy• Defined by:

• Teal paradigm/organizational structure• Self-set compensation and complete transparency• Base Pay + Variable Incentives/Bonuses

• Pros:• Fosters openness & promotes fairness• High buy-in from participants• Rewards individual and group performance

• Cons:• Not compatible with rigid or command/control environments• Requires strong culture to implement• May not appear market competitive

Why Are Strong Fundamentals Necessary?

Organization Individual

Consistent frameworkfor Rewards decisions

Increases confidence that decisions are fair & equitable

Improves ROI onyour talent investment

Clarifies how tomaximize compensation

Connects & aligns Rewardsto other HR/Business priorities

Clearer understanding ofhierarchy, career paths

Compensation Framework

Reward PeopleThe Right Way

What You Can Afford

What People Want

What Is Fair

Use The EntireTotal Rewards Toolbox

Key Trends

Eliminating Performance

RatingsLong-Term Incentives

The Gig Economy

Fast Changing

TechnologyDrive For Innovation

Eliminating Performance Ratings

Rationale For EliminatingPerformance Ratings

Rationale For EliminatingPerformance Ratings

Eliminating Performance Ratings - What’s Next?

How do you make decisions about rewards?• We don’t know• Shadow Ratings/Rankings• Target Pay• Career Based Milestones• Direct Contribution

Long Term Incentives

The Gig Economy

Did You Know?

25% Contractor,Temp or PT

42 millionAmericans by

2020

1 in 3Millennialsfreelance

Fast Changing Technology

76%of Canadian organizationsare or will implement a new HR Systemwithin the next year.

Drive For Innovation

Discussion Activity

Break into groups to discuss the questions below:1. Which trend has the biggest impact on

your organization?• Is it a positive or negative impact?• How big is the impact?

2. How can your organization capitalize on this trend?

3. What other areas of HR does this impact?

Practical Tips & TechniquesThe 5 C’s

Collaborate Communicate Change

Capacity Capability

Collaborate

People Leaders

IndividualEmployees

HR/Rewards

HR/Rewards Role• Leverage your expertise to educate & gain buy-in• Communicate an overall roadmap• Support Rewards practices & decision making• Provide ongoing coaching• Deliver practical, flexible tools & support

People LeadersAre Critical To Success

• People Leaders must be a priority• Drive conversations about Performance & Rewards• Remember: Compensation is only a single driver;

it can’t fix all motivation & performance problems.

TIP:Communication from a People Leader is 3x more impactful than the same communication from HR/Rewards.

Employee Feedback

TIP:Want to know what your employees want?

Ask them!

Communicate

“The single biggest problem in communications is the illusion it has taken place.”

- George Bernard Shaw

Know Your Audience

When do I get a raise?

Communications• Craft transparent, clear & compelling communications• Learn from marketing – segment your message• Respect & recognize their contributions

Why Change?

Managing Change• The Talent Company Pulse On Leadership:

Managing Change is the most significantgap in leadership

Building Capacity

Building Capability

Conclusions• Total Rewards must evolve• No “one size fits all” solution• People Leaders are critical• Communication & change management

have a huge impact• Don’t try to boil the ocean

Questions?