Evaluation grade pay structures contingent pay

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Unformatted text preview: n of each job, in relation to other jobs in the organization across Europe through the introduction of COLT job levels Increases to base salary and variable pay will always be related to the company’s ability to pay. Compensation must be affordable in relation to business success and equitable to employees and customers. Examples – Strategic Reward Examples – Strategic Reward • The overall reward strategy at Diageo is to “release the potential of every employee to deliver Diageo’s performance goals”. The role of the reward strategy comprises five key elements: • Support and enable the talent agenda • Provide clear principles to enable decision making in the business • Align the reward approach with Diageo’s business strategy • Enable every employee to understand why they get paid what they do • Have a customer service ethic that results in great execution Examples – Strategic Reward Examples – Strategic Reward • The rational behind the development of the reward strategy at Friends Provident was to: • Match salaries directly to the market • Give line managers greater accountability for staff salaries and career progression • Increase the flexibility of pay arrangements at business unit level • Facilitate a top­down change in organizational culture • Reward the best performers by paying salaries above market rate • Manage salary costs • Encourage greater accountability by staff for development of Norwich Union Insurance – Norwich Union Insurance – Strategic Reward Pay Benefits Reward Performance Progression, pay and performance Development Learning opportunities Personal development Challenging work Recognition Brand­supporting behavior Career framework Meaningful job content Career opportunities Analysis of current reward arrangements Analysis of internal environment Diagnosis Analysis of external environment Formulation of guiding principles Development of total rewards approach Alignment with business strategy and drivers Development of reward strategies Financial • Total rewards • Job evaluation • Grade & pay structures • Contingent pay • Employee benefits • Pensions Integration with HR strategy Non-financial • Recognition • Development &...
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This document was uploaded on 02/03/2014.

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