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Unformatted text preview: ntingent pay and recognition schemes Total Rewards – Norwich Union Total Rewards – Norwich Union Insurance • NUI have the “Three P’s” for their total reward strategy: Progression, Pay and Performance. It comprises four main elements: • Reward – salary and benefits, variable pay, all­employee share option plan and incentive awards. • Career framework – meaningful job content and career opportunities. • Performance – challenging work, recognition ad brand­ supporting behaviors. • Development – learning opportunities and personal development. Case Study Case Study • To review this section on Total Rewards we will look at a case study “Compensation & Benefits Case 2: Galbraith Pharmaceuticals” • The case is saved in the Class Activities folder on the L Drive. Strategic Reward Management Strategic Reward Management Strategic reward is best described as a “State of mind” – it is an approach to the long­term development of reward strategies. Strategic reward management asks and answers questions: • • • Where do we want our reward strategy to be in a few years time? How do we plan to get there? How will we know if / when we arrive? Examples – Strategic Reward Examples – Strategic Reward • The Children’s Society defined its reward strategy as “we intend to develop a reward system which will support our mission and corporate objectives.” They moved toward processes which: Recognize contribution Are transparent Are owned by line managers and staff Reinforce leadership, accountability, team work and innovation • Are market sensitive but not market led • Are flexible and fair • • • • Examples – Strategic Reward Examples – Strategic Reward • The reward strategy at COLT Telecom is: • • • • Base salaries should be determined generally by position against median market, but always taking account of personal performance and contribution to business success At the senior level there will be greater emphasis on the variable portion of the total package including bonus potential and the opportunity to participate in share programs Internal equity is sought by working to ensure that the overall compensation package reflects the value and contributio...
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This document was uploaded on 02/03/2014.

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