MODULE 3--Total Rewards Communication and Special Situations Flashcards
(30 cards)
What should be communicated (as it related to Compensation)?
Depending on the organization’s Total Rewards and compensation philosophy, the company may choose to develop communication plans for the following:
■ Compensation philosophy and strategy
* Pay for performance
* Risk/reward relationship
* Competitive pay position, pay mix
■ Base pay
* Pay strategy — median, 75th percentile
* Salary administration program, grades and bands
* Merit policy and timing of increases
■ Variable pay
* Eligibility — Who? When?
* Objectives, link to business strategy, payout terms
* Targets, progress, expected payout
* How the program works
* Vesting, risks and tax implications for equity plans
■ Legally required communication — other information legally required to be communicated to employees or otherwise communicated publicly
What are two of the main Considerations as it relates to Compensation Communication
■ Compensation is an emotional issue.
* For employees, their sense of self-worth and personal esteem may be attached to pay, including merit increases and incentive payments.
* Managers and supervisors need to make business decisions that affect the working lives of their employees — pay levels being one of the most important.
■ Value of compensation — The value of compensation may be affected by:
* Employees’ perception of their self-worth
* Employee perception and expectations of the pay and performance management system
* Comfort in knowing values are correctly assigned
* Pay based on the value of the job, not the individual
* Knowledge or perception of pay in the competitive job market
* How pay changes are communicated
■ Often delivered by line managers — Compensation plans are typically administered locally.
* Generally created locally based on local law, geography or business unit
■ Open vs. closed communications approach — Organization culture and HR philosophy/ strategy vary greatly between organizations. Depending on an individual organization’s culture
and communication philosophy, the following should be determined regarding employee communication.
* Is knowledge about pay systems open or closed?
* Will salary grades and ranges be made available to employees? If so, how?
* Will merit ranges and performance standards be published?
* Typically, when limited or no information is provided, employees will attempt to find data to fill this void or make their own assumptions about pay. Employee data may be inaccurate or incomplete.
What is the definition of Physical Well-Being
Definition of physical well-being: To thrive physically, manage one’s
health, take preventive measures, improve the health status, recover from acute illness, and return to peak functionality at home and at work.
Whjat is the Definition of emotional/mental well-being?
Definition of emotional/mental well-being: Being emotionally balanced, being self-aware, maintaining good mental health, being resilient by managing stress, coping with positive and negative emotional triggers, dealing with life crisis and maintaining stability during crisis.
What is the definition of Financial Well-Being?
Definition of financial well-being: Being financially secure, having the
ability to manage budget, meeting financial goals, protecting against risk, saving for contingencies and coping with financial shocks.
What is the definition of environmental well-being?
At its core, environmental wellbeing means being mindful of the space surrounding you (your bedroom, school, workplace, planet, etc.), how you are impacting that space, and how that space is impacting you.
What is a Culture of Well-Being and Philosophy?
Companies that focus on developing a culture of well-being believe that if employees are happy and buy into the brand strategy of the organization, then they will in turn put in maximum effort. These companies usually have a philosophy that involves recognizing employees as individuals whose working lives are intertwined with their personal lives. This approach addresses the whole person by acknowledging that a lack of health or well-being in one area of a person’s life affects their overall sense of well-being.
Communicating that the organization offers programs to support
employees’ well-being is a valuable attraction and retention tool for
key employees.
What are some example of Well-Being Programs?
Programs — Companies often develop a variety of programs under
each category of well-being:
1. Physical well-being
* Nutritional counseling programs
* Weight control programs
* Health and wellness programs
* Exercise and fitness programs
* Smoking cessation
* Disease management programs
- Emotional/mental well-being
* Employee assistance programs
* Stress management programs
* Health and lifestyle coaching
* Flexibility programs
* Mindfulness training programs - Financial well-being
* Debt counseling
* Adoption assistances
* Tuition assistance
* Group insurance discounts
* Estate planning
* Long-term insurance - Environmental well-being
* Community services activities (social or environmental focus)
* Corporate volunteer programs
■ Program changes
* New benefits, provision changes
■ Policies and procedures
* Choices, forms, process
What are some consideration of Communicating Well-Being?
■ Make it clear and simple — Just the names of some wellness program elements — biometric screenings and health risk assessments, for example — can seem daunting. Most of us don’t
understand medical jargon, and when we see or hear it, we find it overwhelming and often scary.
Wellness programs need to be communicated in a way that makes sense to employees.
■ Personalized, customized — Personalized and relevant communications is key. For example, people who don’t have or aren’t at risk for diabetes, don’t typically want to receive content about diabetes or diabetes-friendly recipes. They want to receive content that is directly relevant to their health needs and goals. It is important to avoid one-size-fits-all content whenever possible.
■ Focus on confidentiality and privacy — Information about some aspects of well-being, such as health and mental health information are very personal and elicit strong emotional responses. Employees need to be reassured that their privacy will be protected and the results of any well-being program will remain absolutely confidential. Clearly communicating the company’s commitment to maintain employee privacy and confidentiality will inspire confidence, earn respect, and win engagement.
What should be Communicated as it relates to Benefits?
■ Benefits philosophy and strategy
* Typically, a Total Rewards philosophy or strategy explains
the overarching goals of the programs an employer offers. If
you have a Total Rewards philosophy, or a distinct benefits
philosophy, it is recommended you communicate that to
employees so they understand the organization’s goals in
providing the programs.
* For example, is the employer philosophy paternalistic or is there
more shared accountability between employer and employee? Is
the philosophy one of informed consumerism? Is it supporting
the financial and health well-being of employees and their
families? This will determine the message that the employer
wants to convey above and beyond simply communicating
plan types.
– Seniority-driven, family-centered, employee-centered
* What is the benefits strategy? The strategy should drive not only
what information is communicated, but the message and the
desired end result of the strategy.
– Choice
■ Programs/package
* Benefits programs include retirement programs and health and
welfare programs.
* Benefits communication contains technical messaging as
well as messaging meant to persuade behavioral change that
ultimately supports the strategy.
Technical messaging might include:
– Available options
– Cost
– Number and types of funds available in retirement plans
■ Plan changes — If plans change during the plan year or during an
annual enrollment period, these changes must be provided.
* Provider changes
* Provision changes
* Employer/employee contributions
* Funds and fund managers
■ Enrollment and administrative procedures — Information must be
communicated that can guide employees and their families through
the decision-making process of enrolling in available plans.
* Choices, deadlines, forms, process
* Separate new hire communication may be required for
onboarding employees. They receive enrollment information
but there may be an introductory video or different messaging
that encompasses all things offered to new hires that are not
normally included in the annual enrollment period.
■ Benefits statements
* Account activity and transactions
■ Legally required communications
* Various laws and regulations exist around the globe requiring
employers to inform and educate participants regarding
benefits programs. It is important to work with legal counsel,
an HR consulting firm, or other advisor to understand your
obligations for legally required employee communication.
Certain types of plans have requirements not only for what you
must communicate, but also the timing of communication, and
even the format of the communication. To avoid penalty fees,
you need to meet the requirements.
What are some Benefits Communications Considerations?
■ Events-centered communication
* Employment-centered communication occurs following an event related to an individual’s employment.
– Time of hire — immediate eligibility, waiting periods
– Subsequent eligibility for plan participation — plan features and costs, required actions
– Pay raise — impact on benefits levels, impact on employee contributions
– Promotion — expanded eligibility
■ Needs-centered communication occurs at the time of individual need.
* Illness/disability — medical/hospital benefits, short-term disability, long-term disability
* Retirement — pension plan, Social Security, retiree health
* Death — life insurance, AD&D, beneficiary pension benefits
* Other termination of employment — vesting status, conversion rights
■ Annual enrollment — offers employees the chance to re-enroll or change their benefits plans. Proceeding and during this period there are many opportunities for employers to effectively use various communication channels to get the messages across:
* Face-to-face — benefits and wellness fairs
– Display all the benefits that employees and their dependents can renew on an annual basis
– Invite vendors in to showcase their benefit and entice enrollment
– Provide on-site health screenings and wellness promotions
– Offer meetings to give an overview of benefit changes
* Paper-based
– Brochures, postcards and fliers to communicate upcoming programs as well as provide detailed information regarding the plans
* Technology
– Online brochures, plan documents, plan comparisons, links to providers, online enrollment
Often delivered from a central source — Benefits plans are generally centrally administered.
* Although there may be local variances (e.g., medical plans), generally the programs are administered from the organization’s headquarters.
■ Entitlement mentality — Communications have significant impact on employee perceptions regarding the roles of the employer and employee in providing benefits.
■ Complexity of information
* Legal context
* Technical details
* Complex formulas
* Multiple considerations
■ Expanded audience — Spouses, family members, retirees, and new and former employees may also need to receive and understand information regarding benefits programs.
■ Demographic shifts
* Education
* Length of service
* Earnings
* Family status
■ Compliance — Legal requirements govern documentation, administration, financing and communication of benefits plans.
What should be Communicated as it Relates to Development?
Opportunities for growth and development that help employees expand their knowledge, skills and abilities, and apply the competencies they have gained to new situations are highly valued.
Development programs tap current employees’ potential and build their competencies to achieve the employer’s goals. Communicated properly, these development programs can speed innovation through engaged and motivated employees, increase organizational agility by forming right-skilled internal teams and help the company remain competitive through retention of valuable employees.
Communicating the value of development opportunities in the organization to prospective candidates can go far in attracting the talent the organization needs for success.
■ Philosophy and strategy (short-term and long-term)
■ Program policies and procedures
* College recruitment
* Development plans
* Educational reimbursement
* Skills training provided in-house or through outside training centers
* Career development, mentoring or counseling services
* Internal career advancement
* Job shadowing, job rotation, stretch assignments, and cross-training
* Leadership development and succession planning
What are some Considerations in communicating Development
■ Integrated — Similar to those of recognition, development communications should be integrated with other communications. These include:
* Performance management
* Compensation
* Succession planning
* Workforce planning
■ Responsibility shared by supervisor and employee
■ Lack of accountability — Few organizations consistently hold managers or executives accountable for developing their direct reports.
■ Unique to each individual
■ Inconsistent execution — Most organizations have development programs in place, but few companies execute these programs in a consistent manner.
■ Generational issues — In earlier generations (Baby Boomers and Generation X ), on-the-job training was enough to bring employees up to speed. The new generations seek well-defined assignments, clear goals and time for discussion and feedback. Understanding what each generation needs is a key input for a development strategy.
■ Programs/opportunities may be somewhat volatile — Programs/opportunities are often at risk of being reduced or eliminated when an organization experiences hard times such as an economic downturn or financial difficulties. However, communicating available development opportunities can retain key talent during these challenging times when compensation may be frozen, and some benefits may be reduced.
What should be Communicated as it Relates to Recognition Programs
Recognition — What to Communicate
Today, more organizations are focusing their recognition programs strategically to align them with business goals. Best practice recognition programs are designed to promote employee actions that support individual, team and organizational goals. The culture of the organization will determine the type and amount of recognition communication. Appropriate communication can help ensure the success organizations are looking for in achieving business goals.
■ Program policies and procedures
* Processes and forms
* Recognition policy — The policy assists managers in observing, and ultimately, recognizing those employees who meet goals and exhibit the desired behaviors.
■ Objectives and valued behaviors
* Employees who understand the valued objectives and demonstrate the desired behaviors can strive to meet those expectations and be rewarded accordingly.
■ Specific types of recognition awards
* Recognition plans may be formal or informal depending on the plan design.
* Examples include: spot awards, managerial recognition, above-and-beyond performance, peer-to-peer
What are some Considerations when Commmunicating Recognition
■ Integrated — Needs to be part of all HR and management processes and not a stand-alone communication
■ Supervisor-dependent — How adept the supervisor is at communicating, coaching and aligning individual goals, behaviors and actions with those the organization values can vary from supervisor to supervisor.
■ Public recognition — The value in publicly noting desired behaviors needs to be tempered with the recipient’s sensitivity to public recognition.
How should the EVP be communicated?
Communicating the Value of the Employee Value Proposition
■ Organizations can communicate their value propositions to attract, motivate, engage and retain employees. Research has shown that when the EVP is communicated effectively and employees understand the value proposition, their organization’s financial performance is above that of their peers.
■ Communication of the EVP follows a strategic communication process, and would most likely include:
* a sentence or graphic image representing the EVP
* key messages and position statements to be delivered through multiple channels inside the company
What is the Total Rewards Statement?
In addition to communicating information targeted to compensation, benefits, well-being, recognition and development, some organizations prepare statements summarizing the value of each employee’s complete Total Rewards package. Total Rewards statements can help achieve greater employee appreciation and understanding of their Total Rewards package. However, caution should be taken to avoid arbitrarily setting or estimating a monetary value on intangible benefits that not all employees use or value.
Total Rewards statements are often sent to employees, available real time electronically, or given to employees by their supervisors and discussed as part of performance reviews. They may include the following:
■ Compensation and benefits data combined
■ Value of well-being programs itemized
■ Value of development programs itemized
■ General information and specific data regarding rewards
■ Individualized, personalized rewards information for employees
What are some Special Situations that may require heightend communication Awareness and Sensititivity?
Situations that may require heightened communication awareness and sensitivity include:
■ Communicating negative change
■ Communicating to a global audience
■ Communicating about mergers and acquisitions
■ Communicating in a union environment
How should Negative Change be communicated
Communicating negative change requires preparation. A company can provide a structure to what it is going to say, without necessarily scripting the entire conversation. A structured approach will also help you identify possible obstacles and implications and determine ways to address them.
■ Tell the employees the situation the employer faced and provide a clear picture of the situation.
■ Explain how and why the business decision was made. Make the business case for the changing situation. The employee may not agree, but it is important to convey that this was not an arbitrary decision.
■ Outline the alternatives and choices. Describe some of the choices the organization was faced with and the implications.
■ Explain how the final decision was reached. Offer a clear, detailed, fact-based rationale for the final decision.
■ Give employees a coping strategy. The employee will need some mechanism to cope with the information. Depending on what the information is, possible solutions include Employee Assistance Programs (EAPs) and job placement assistance.
When communicating to a global audience what should a person be sensitive to?
When communicating to a global workforce it is important to remember that what might be appropriate in the home country may not be appropriate in other countries. Be sensitive to the following issues:
■ Language
* Translation — Be wary of word-for-word translations. Translation should be done and reviewed by someone with native fluency.
* Mistranslation and colloquialisms
■ Culture
* Conversational style
* Greetings and introductions
* Gestures and public manners
■ Compensation and benefits perceptions
* Expectations
* Team compensation (Japan)
* Enhanced benefits (Western Europe)
■ Events and customs — Events and customs may differ
* Work days differ
* Holidays
* Time off
■ Different process — The process is different and takes longer
* Translation and review
* Legal review
* Physical distribution
* Obtaining and evaluating feedback
How should communication about Mergers and Acquisitions Happen?
Communicating About Mergers and Acquisitions
Mergers and acquisitions, along with downsizing, rightsizing and restructuring, present significant communication challenges to the HR professional. Furthermore, there are often restrictions placed on what can be communicated and when it can be communicated to employees.
■ Prepare for and anticipate employee concerns — Address employee concerns early, honestly, quickly and often.
* Job stability
* Incentive payout
* Pension benefits
* All other benefits
■ Ensure consistent and accessible communication messages.
* Be sure to explain the purpose of the event, as allowed.
* Meetings should allow for two-way communication.
* Provide the same message to all employees.
What is the process for Communicating in a Union Environment?
Communicating in a Union Environment
Employees often unionize due to the perceived lack of management response to employee concerns.
Therefore, a union audience may not be receptive to communication from management. Nonetheless, communication is still important and necessary.
■ Remember Total Rewards programs may differ for union vs. nonunion employees.
■ Consider any contractual obligations.
■ Keep supervisors as informed as union-represented employees — It is important for the company to keep supervisors as informed as the union-represented employees that they supervise.
What is the process for working Effectively wtih External Vendors?
Working Effectively with External Vendors
When outsourcing any employee communication plan, it is imperative to establish good communications with vendors and outsource partners.
■ Establish clear expectations — Establish clear performance expectations, including Communications. Back the performance standards with guarantees and financial rewards or penalties.
■ Orient the vendor — Orient the vendor to the organization’s history, core values and communication practices.
■ Involve the vendor — Involve the vendor in every step of the communication process.
■ Ensure shared communications — Ensure shared development of all communication from the outset; nothing goes out to plan participants until reviewed and agreed upon by the company and the vendor.
■ Follow up after project completion — Conduct a feedback meeting with the vendor to discuss the process, project success, and areas for improvement.
To work effectively with an Internal Communications Department what should happen?
Working Effectively with an Internal Communications Department
■ Include members on the project team — Include a member or members of the organization’s communications department on the project team. The communication expert can:
* Help identify design elements which are good in the abstract but may be difficult to communicate
* Gain a better understanding (from the viewpoint of the audience) of the rewards program design if involved early, leading to a more effective communication plan.
■ Assign a project manager — When working with several communication specialists, assign a project manager or main contact person.
■ Determine methods of communication — Determine the most effective methods of communicating with the team (e.g., email, conference calls, memos, notices).
■ Establish goals and objectives — Establish goals and objectives and get buy-in from all team members.
■ Agree on an approval process up front — Decide who will have final approval on costs, changes and the final product.
■ Recognize that your internal communications staff’s knowledge of Total Rewards programs can be an asset or a liability.
* Lack of knowledge can help you by providing a layman’s view of the material. A good communicator improves the piece by ensuring it is thorough and understandable to a general audience.
* Lack of knowledge can hinder you if the process is slowed or complicated with time required to explain programs and features to your communication reviewer(s).
