Total Rewards Strategies: Getting the Most from Your Rewards Dollars

Transcription

1 Total Rewards Strategies: Getting the Most from Your Rewards Dollars June 2018 Dan Ripberger Managing Director

2 1 About the Webinar Lines Are Muted Use Arrow To Minimize Menu View Slides in Full Screen Mode Enter Questions for Q&A Session

3 2 HRCI & SHRM Pre-Approved In order to receive the HRCI* & SHRM** Credits: Must have signed in with your unique registration link Must attend the entirety of the webinar Must answer the applicable polls for HRCI credits An HRCI certificate with ID# will be sent to you upon completion of all of the above Make sure to add apbenefitadvisors.com to your whitelist/safe senders list to receive all follow-up s *The use of this seal confirms that this activity has met HR Certification Institute s (HRCI ) criteria for recertification credit pre-approval. **AP Benefit Advisors, LLC is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP or SHRM-SCP. This program is valid for 1 PDC for the SHRM-CP or SHRM-SCP. For more information about certification or recertification, please visit shrmcertification.org.

4 3 What do employers need of employees? Employers don t hire people because they like them. THEY HIRE PEOPLE TO MAKE THEM MONEY OR ACHIEVE THEIR MISSION! You can spend too much on employees... Investment Labor Supply Curve Hours Worked/Production

5 4 What do employers need of employees? Demonstrated proficiency in specific competencies Core behavioral and personal traits Job-related and technical competencies Engagement

6 5 So, we want engaged employees... Gallup defines engaged employees as those who are involved in, enthusiastic about and committed to their work and workplace. In other words, they are mentally present and aware to perform their jobs, they are engaged in the moment. Engagement is a percent of time measure.

7 6 SIDE BAR: Managers drive employee engagement... HR helps managers drive engagement. HR helps drive manager engagement. It s a small world managers and employees don t see it all.

8 7 SIDE BAR: In theory, managers are not people too... Management is a set of duties and responsibilities like any other job managers are tools of the organization. Managers first priority is management even if beer is involved. Totally effective management is difficult and exhausting (probably).

9 8 Step-Wise Strategy Formulation Organization Strategy People Strategy Employment Brand Total Rewards Strategy

10 9 Employment Branding Process of creating, communicating and socializing an organization s value proposition to current and potential employees. Brand image elements may include: Organization/product image Culture Management style/effectiveness Caliber of current employees Career and development opportunities Benefits and work/life balance options Security/stability Altruism

11 10 Poll Question #1 Which comes first, your people strategy or your employment brand? People Strategy Employment Brand

12 Total Rewards Model 11

13 12 Mass Customization No more herd each employee has their own needs One size does not fit all Impractical/impossible to individualize all rewards Total Rewards allows organizations an approach for mass customization Mass production of goods with differing individual specifications through the use of components that may be assembled in a number of different configurations. Mass customization is a cost-efficient way of offering some of the benefits of customization.

14 13 What is a Total Rewards Strategy? An approach for managing the elements of the employment interface between the organization and its workforce It provides a vehicle for: Identifying value-added employment-related factors Prioritizing the organization s human resource investment Rationalizing different components of the employment interface Communicating the alignment between rewards and business strategy It addresses opportunities to forge a shared destiny with employees: To attract, retain & engage To protect, enable, and reward Is the fundamental strategy for delivery upon your employment value proposition

15 14 Poll Question #2 Of the list below, what is the main reason employees leave? Their boss Boring work Career advancement opportunities Salary and/or variable pay Flexibility

16 Example Tools/Levers Tool Effective Tendency Recruit Retain Engage Cost Complication Base Salary Cash Incentive Long-term Incentive Health & Welfare Retirement Paid Time Off Employee Services Effective Management Positive Culture Internal Advancement External Advancement Co-workers Identification Other

17 16 Selecting Levers Based on Value Variable Pay Health Insurance Day Care Paid Time Off On-Site Services Group Auto Importance Effectiveness Cost

18 17 Additional Design Considerations Environment & Culture Leadership & direction Management style Work processes Organizational structure Communications

19 18 Poll Question #3 True or false. The relative importance (and plan design focus/vendor selection) of your health insurance program s employee cost, benefit levels, administrative features, employee education programs and other characteristics should be determined in the context of your total rewards strategy. True False

20 19 Additional Design Considerations Economic Environment Industry status Organization life cycle Financial constraints Competitive practices

21 20 Communicate, communicate, communicate Organizational basis/need Value proposition of employment Purpose of total rewards strategy Objectives of each element Current and future Organizational expectations of employees

22 21 Integrate, measure... adjust Align and integrate Selection systems Onboarding programs Talent identification and management Career development (Or counseling?) Measure Market/candidate perceptions and expectations Employee perceptions, expectations and disconnects Programmatic impact Business/organization performance

23 22 Critical Areas of Effectiveness Identifying most likely to succeed Managing overall investment Better aligning rewards with employee needs Creating a programmatic framework to communicate

24 23 Poll Question #4 What programs or items could be considered reward elements? Health benefits Educational assistance Expensive laptop HRIS All of the above

25 24 Parting Thoughts We judge our organizations intentions while employees judge our organizations actions

26 25 Parting Thoughts The way you pay people is your most sincere form of organizational communication... Is your money where your mouth is?

27 26 About RSC Advisory Group RSC is a full-service management consulting and services firm that provides clients compensation consulting solutions. We are comprised of senior advisors and technical specialists with diverse perspectives, experiences and technical abilities. Our tailored consulting teams are a key component of our value proposition. We bring resources that are best-suited to each client s specific needs. We advise on, design and help implement systems and practices that help clients grow and utilize people resources effectively. Visit our website at