Total reward Flashcards
What is the total reward made up of?
- Financial rewards- pay and benefits
- Work-life balance
- Recognition, development and self actualisation
- The work environment and the work itself
Give 4 factors that influence organisations pay and reward.
- Legislation
- Trade Union/Employee Demands ie Collective Bargaining
- Scarcity of Particular Skills
- External Market Rate Comparisons
What are the different types of pay? give 5.
- UK Gov legislation for pay rates ie national minimum wage; national living wage
- Payment by results –individual piecework
- Plussage – payment for additional qualifications and for extra responsibilities eg supervisor
- Non Monetary awards such as gift vouchers; recognition; training and development will discuss later but non monetary awards can be classified as other benefits
- Bonuses – e.g. Xmas one off payment awarded retrospectively generally as a reward for work completed. Organisations can manage costs better (not added to salaries etc)
Give 4 critiques of variable pay
- Perverse incentives (competition, manipulation, bribery)
- Crush creativity.
- Extinguish intrinsic motivation.
- Encourage cheating, shortcuts, and unethical behaviour.
Total rewards can be described as a balance between pay, benefits etc. Give the 4 levels we can use to categorise this balance.
Individual- base pay, contingent pay
Transactional- pension, holidays
Relational- Training and career development
Communal- leadership, recognition
What are the main objectives behind the reward strategy system. Give 3
Encourage behaviours that enable the organization to achieve its goals and attain competitive advantage
Enable flexibility, creativity and innovation
Attract suitable candidates
What is meant by pay and reward in the rewards strategy? Define each term separately
Pay- monetary award
Reward-the whole reward/benefits element plus pay to include financial and non -financial elements
How have peoples efforts of work changed over time?
Was- discretionary effect (people would want to do more than was required of them with work taking over a great amount of time of their lives)
Now- Quiet quitting- doing the tasks required of them but doing no more so work doesn’t take over their life.
Explain Adams equity theory
- Employees distinguish well between pay satisfaction and benefit satisfaction
-With pay it is the amount that matters (distributive justice) and with benefits its the processes that matter (procedural justice)
It is important that an employer not only treats employees equitably in payment matters, but is SEEN to do so too.
You should be able to treat everyone equally in terms of:
-Voice
-communication
- involvement
What is a job evaluation
Job Evaluation – a system to measure the significance of a job in an organisation helps identify hierarchy of job roles
What must pay and reward systems do to be successful? Give 4 things.
Fit with business strategy
Encourage desired behaviours
Integrate with other HR strategies
Reward results and behaviour
Give some ethical issues related to pay and reward
Low Paid Foreign Workers particularly in the clothing, care, & agricultural sectors
More UK Organisations claiming to be wholly aware and responsible for their supply chain
Public hold them accountable
Gig jobs & Zero Hours Contracts
Define the term variable pay
Pay that is not guaranteed e.g. commission, a bonus, overtim
Define the term communal reward
Communal Reward – Sense of belonging, socialisation of work, having a voice and control over work, employee involvement, values of organisation and leadership
Define the term relational reward
Relational Reward – opportunities for continuous professional development
