chapter 0 - total rewards

Question 1

Total Rewards: 3. Relational

Answer 1

More difficult to quantify than compensation elements
Employees don’t value all the same – depends on individual circumstances
Employees may not recognize the value (yet a cost to the employers)
Goal is to influence human behavior; attraction to the organization, retention and motivate
How do we know what people value?
How will employees and prospective employees know what elements of total rewards the organization offers?

Question 1

Total Rewards: 3. Relational (Non-Compensation Elements)

Answer 1

Relational rewards don’t have a clear cash value; they are the “other” reasons you join, stay or are engaged

What rewards do you value?
Do these rewards motivate you?
Are these rewards the same rewards you valued last month, last year, five years ago?
Do you anticipate that these rewards will be what you will value next month, next year, in five years, twenty years?
What impacts what rewards you value?

Question 2

Categorizing the Forms of Total Rewards

Answer 2

1. Direct: cash and equity (monetary value)
   Base pay (salary or hourly rate; allowances)
   Short-term incentives (formal bonus, profit sharing)
   Long-term incentives (options, restricted stock)
2. Indirect: benefits & welfare programs
   Health and welfare benefits
   Government mandates (e.g., social security)
3. Relational: interaction & development
   Social, personal growth, “human capital appreciation”
   Some rewards for performance, some by membership

Question 3

statutory benefits

Answer 3

Social Security: Federally administered insurance and retirement program; paid by employee & employer
Unemployment compensation: Provides income to employees who have lost their jobs; employer paid
Workers’ compensation: Protects employees who are injured on the job; employer paid