Employee Reward. Alternatives, Consequences and Contexts. Stephen j. Perkins and Geoff White. Chartered Institute of Personnel and Development

Transcription

1 Employee Reward Alternatives, Consequences and Contexts Stephen j. Perkins and Geoff White Chartered Institute of Personnel and Development

2 Contents LIST OF FIGURES AND TABLES FOREWORD ACKNOWLEDGEMENTS XIII xiv BOOK PLAN xv Chapter 1 PART ONE Introducing Employee Reward Systems Interests in employee reward Influences on employee reward thinking Chapter scope Employee reward: definitions, relations and contribution potential Employee reward levels vs 'labour costs' Employee reward and the employer-employee dyad Orientations towards workforce members Employee reward: a systems approach Criticisms of systems thinking A few words on our tripartite taxonomy Key learning points and conclusions Plan of the book Chapter 2 Conceptual and Theoretical Frameworks Why is theory important? The major theoretical underpinnings to employee reward Labour market theory Alternative economic theories of reward Human capital theory Efficiency wage theory Principal-agent theory Internal labour markets Wage-gap (or union mark-up) theory Criticism of neo-institutionalist arguments Tournament theory and winner-take-all regimes Alternative perspectives on employee motivation and reward Definitions of motivation

3 Employee Reward Instincts, learned behaviours and expectancy 51 The psychological contract and reward 55 Individuals, institutions and strategic alignment 56 Key learning points and conclusions 60 Chapter 3 PART TWO Chapter 4 Chapter 5 The Legal, Employment Relations and Market Context 62 Regulating the reward system 64 The impact of anti-discriminatory legislation 67 Legal regulation of reward systems 67 Collective bargaining 81 Levels of pay determination 86 The impact of the labour market 88 Criteria for pay increases 92 Key learning points and conclusions 93 Base Pay Structures and Relationships 97 Grading structures 98 The historical development of grading structures 102 The importance of equal-pay law 103 The objectives of grading structures 104 Types of pay structure 105 Job evaluation 118 The development of job evaluation 119 The critique of job evaluation 120 The types of job evaluation 122 The prevalence of job evaluation in the UK 127 Choosing a job evaluation scheme 129 Aligning pay with the market 137 Sources of pay intelligence 139 Key learning points and conclusions 148 Pay Setting, Composition and Progression 151 Wages vs salary systems 153 Reward contingencies 155 Time- or performance-based reward? 156 Service- or seniority-based pay 158 Age-related pay 160 Performance-based pay 161 Competency-based pay 176 Skills-based pay 181 Market-based pay 186 Compensatory payments 190 Key learning points and conclusions

4 Contents Chapter 6 PARTTHREE Chapter 7 Chapter 8 Variable Pay Schemes Some key concepts The dimensions of incentives How common is variable pay? Individual results-based rewards Individual piecework Work-measured schemes Measured day work Commission Results-based individual bonuses Team-based rewards Types of teamworking Measuring team performance How is the reward distributed? Collective short-term rewards Collective long-term rewards Incidence of employee share schemes Key learning points and conclusions Benefits An absence of theory The growth of employee benefits Typologies of employee benefits Employee attitudes to benefits Benefit policies and decisions Welfare benefits Work-related benefits Status benefits Flexible benefits Case study: Lloyds TSB Voluntary benefits Salary sacrifice schemes Key learning points and conclusions Pensions The origins of UK pension schemes The UK state pension scheme UK occupational pension schemes today Types of occupational pension scheme Other types of scheme Equality issues The major benefits available AVCs l

5 Employee Reward Stakeholder pensions 283 The role of HR in pensions 283 The pensions crisis 284 Key learning points and conclusions 288 Chapter 9 PART FOUR Chapter 10 Chapter 11 Non-financial Reward 290 Defining non-financial reward 292 A high-investment employment experience 297 Unpacking the total reward employment experience 300 Total reward, employee engagement: managing work(er) identity? 312 Key learning points and conclusions Rewarding Directors and Executives 319 What do executives earn; how does it compare with other employee reward levels: is it justifiable? 322 So much for substance: what about the process? 327 The corporate governance context 330 Theorising executive reward: contested terrain 336 Designing and reporting on executive reward 344 Executive reward compliance/disclosure issues 346 Unpacking the portfolio 3/>q The remuneration committee's role 351 The reward specialist's role in executive reward management 352 Executive reward in the public sector 353 Key learning points and conclusions 354 International Reward Management 357 Rewarding expatriation - rewarding multi-local talent 358 Convergent transnational capital power - divergent business systems 359 Not for profit alone 360 Multinational contexts for employee reward management 361 Choices for multinational management and their reward consequences 363 Factors and trends in rewarding expatriated knowledge mobilisation 365 Defining expatriates 366 Expatriate assignments 366 Accounting for expatriation reward management 389 HR role: scope for tension with the line 373

6 Contents Factors and trends in rewarding non-expatriated knowledge mobilisation 376 Key learning points and conclusions 383 Chapter 12 Employee Reward within 'HRM' 386 " Defining HRM 387 Strategy perspectives and employee reward choices 392 Strategic reward (aka 'the new pay'): advocates and critics 400 Actors and their roles in employee reward management under the H RM rubric 406 Key learning points and conclusions 408 REFERENCES 410 INDEX 442