Transactional lowpaylevel consistentprocesses

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Unformatted text preview: some • Uniform Rewards – A reward system that minimizes employees substantially more than others to emphasize high and low performers differences among workers and offers similar compensation to all employees Transactiona l Bargain Laborer External/Cost HR Strategy Uniform Transactional Low pay level Consistent processes Loyal Soldier Internal/Cost HR Strategy Relationa l RELATIONSHIP TYPE Strategic Recruitment Strategic Recruitment Uniform relational Similar pay for all Rewards for loyalty Free Agent External/Differentiation HR Strategy Variable transactional High pay level Short­term incentives Committed Expert Internal/Differentiation HR Strategy Uniform Variable relational High performers rewarded Long­term incentives Variable REWARD TYPE Activity Activity What does “value” in a job mean to you? To make a couple of very important points about compensation and benefits that you need to understand, let us begin with an activity. This activity is saved on the L Drive in Class Activities folder and is called “Valuing Jobs” Definition Definition Reward Management, what is it? “Reward management deals with the strategies, policies and processes required to ensure that the contribution of people to the organization is recognized by both financial and non­financial means.” Strategic Business Aims Strategic Business Aims Reward management must be strategic – it helps achieve key business objectives and goals: •Reward people according to the value they create •Align reward practices with business goals and employee needs •Reward the right things (values, effort, behaviour, attitudes, results) •Help to attract, engage, develop and retain top people •Develop a high performance culture •Build market competitiveness and reward differentiation Achieve Reward Objectives Achieve Reward Objectives • • • • • • • Start with a philosophy Reward according to contribution Have a transparent and fair system Align rewards with strategic business plans Integrate rewards with other HR initiatives Design rewards for your business context Aim to develop a high performance culture Rewards Philosophy: Lloyds TSB Rewards Philosophy: Lloyds TSB • People know wh...
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