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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
Low pay level
Consistent processes Loyal Soldier Internal/Cost HR Strategy
l RELATIONSHIP TYPE Strategic Recruitment
Strategic Recruitment Uniform relational
Similar pay for all
Rewards for loyalty Free Agent External/Differentiation HR Strategy
High pay level
Shortterm incentives Committed Expert Internal/Differentiation HR Strategy Uniform Variable relational
High performers rewarded
Longterm incentives Variable
REWARD TYPE 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
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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- Fall '13