Cathy Hendry LINKING STRATEGY AND REWARD

Transcription

1 Cathy Hendry LINKING STRATEGY AND REWARD

2 WHAT WE WILL COVER TODAY + Introduction to the Total Rewards Model + Key elements to a Reward Strategy + Insight into pay and benefits in the sector

3 WorldatWork Total Rewards Model Remuneration

4 Example Total Rewards Framework Making a Difference Strategies to attract, motivate and retain employees Compelling Future Vision and Values Organon image & reputation Development & career opportunities Community focus Employment brand Pay and Rewards A rewards framework across Organisation that reinforces high performance recognises achievement is transparent, fair and consistently applied Total remuneration Benefits Recognition & celebration Engaged Staff Positive culture People focus Leadership Colleagues Trust & commitment Open communication People Performing Positively Performance management at all levels Achieving Results Living the Values Development & training Career enhancement

5 THE REMUNERATION FRAMEWORK

6 Context: Remuneration and Rewards

7 Pay structure options Simple job matching Enhanced job matching Broadbanding / classification Banding JE Based Narrow grade structure Job evaluation points E.g. match to #212 Financial Acct. Survey A E.g. match to average of Financial Acct, Survey A; Group Acct, Survey A UQ; Qual Acct, Survey B UQ F E D C B A Top Executive Senior Management Snr Prof/Specialist Middle Management Professional Advisor Supervisory Technical Specialist Technical Admin Skilled Operator Clerical/ Semi-Skilled In this model jobs are assigned to bands using descriptors for each band e.g e.g Jobs assigned to bands based on points e.g. 150 pts = $31, pts = $31,500 The points in this model are based on job evaluation total points (sum of points in all factors)

8 Link to external market + Understand your relevant markets + Identify appropriate sources for information + Understand the market information + Don t hard wire market linkage into policy or employment agreements

9 A Balancing Act MARKET RATES AFFORDABILITY

10 Linking Pay to Performance IDEAL CULTURE (empowered workforce, values-based, trusting, transparent, credible, responsive) Clear Vision / Mission Robust Business Planning Cascaded Goals and Objectives Proactive Performance Management Rewards for Performance Clearly articulated purpose Strategic Plan Annual business plan developed from strategic plan Balanced scorecard goals Clearly articulated expectations (results and competencies) BU, team and individual People Management On-going coaching Consequences of performance or non-performance Exit? Pay, Recognition, Promotion Justifiable / defensible decisions based on performance evidence Differentiated for highest performing individuals

11 2016 Strategic Pay Limited

12 HOW DOES THE NFP SECTOR PERFORM WHEN IT COMES TO REWARD?

13 FR NZD Thousands Actual Pay Practices: Sectors General Market 28% Private Sector 500 Public Sector 400 Not for Profit 8% -11% % -13% General staff Mid management Snr management CEO & Snr Exec pts pts pts pts Source: NZ Remuneration Survey Sep 2016 / NFP 2016

14 Top Benefits Offered 2015/16 Flu Vacs 62% 76% (48%) General Market Tool of trade vehicle 48% 68% Not for Profit Prof Ass Fees 65% 78% Car Park 67% 73%

15 Work / Life Balance Initiative 98 % NFP RESPONDENTS OFFER SOME FORM OF WORK/LIFE BALANCE INITIATIVE COMPARED TO ONLY 82 % GENERAL MARKET ORGANISATIONS

16 Turnover Voluntary Turnover (median) 12.3% NFP Market 13.1% General Market 13.9% Private sector 12.0% Public sector Involuntary Turnover (median) 0.5% NFP Market 1.9% General Market 2.3% Private sector 1.8% Public sector Source: HR Metrics Survey2016

17 Absenteeism Average # days lost to absenteeism (median per employee) 3.0 days NFP Market 4.0 days General Market 4.0 days Private sector 5.0 days Public sector Overall number of days lost per year (median) 75 days NFP Market 294 days General Market 327 days Private sector 708 days Public sector Source: HR Metrics Survey 2016

18 Final Thoughts + Don t forget to communicate your policies + Consider Transparency in the context of your organisation. + Fairness and Equality are key

19 OUR DATABASE 1,175 5% 13% 32% THANK YOU FOR YOUR 3% TIME 5% Organisations 168,537 Employees 46% Private 34% NFP 20% Public 2% 2% 4% 3% 20% 11%

20 Thanks for joining us! QUESTIONS OR COMMENTS?