Total Rewards Management

Question 1

What is Total Rewards?

Answer 1

Collective strategies used by companies to attract, retain and motivate talent, contributing to improved business performance.

Question 2

What are the elements of TR? (5)

Answer 2

(1) Compensation
(2) Benefits
(3) Work-life
(4) Performance and recognition
(5) Development and career opportunities

Question 3

What is compensation?

Answer 3

Pay provided by an employer to an employee for services rendered as part of an employment relationship.

Question 4

What are the elements of compensation? (4)

Answer 4

(1) base pay
(2) variable pay
(3) short term incentives
(4) long term incentives

Question 5

What is base pay?

Answer 5

Fixed pay that does not vary according to performance.

Question 6

What are examples of base pay?

Answer 6

Wages and salaries.

Question 7

What is variable pay? (2)

Answer 7

(1) pay that varies according to performance; and

(2) must be re-earned each performance period

Question 8

What are examples of variable pay?

Answer 8

Performance bonus.

Question 9

What is short-term incentive?

Answer 9

A form of financial reward for meeting a pre-established level of performance over a period of one year or less.

Question 10

What are examples of short-term incentives?

Answer 10

Gain sharing and profit sharing.

Question 11

What is long-term incentive?

Answer 11

A form of financial reward for meeting a pre-established level of performance over a period longer than one year.

Question 12

What are examples of long-term incentives?

Answer 12

Performance shares.

Question 13

What are benefits?

Answer 13

Indirect compensation that is used to supplement the cash compensation that employees receive.

Question 14

What are examples of benefits?

Answer 14

Annual leave and medical benefits.

Question 15

What is work-life?

Answer 15

What an employer does to create a more friendly and supportive environment to help employees achieve success both at work and at home.

Question 16

What are examples of work-life?

Answer 16

Flexible work arrangements.

Question 17

What is performance?

Answer 17

The alignment of organisational, team and individual effort towards achieving business goals and organisational success.

Question 18

What is recognition?

Answer 18

It acknowledges employee’s effort and meets an intrinsic psychological need for appreciation of one’s efforts that contribute to organisational success.

Question 19

Is recognition cash or non-cash?

Answer 19

It can be both cash or non-cash

Question 20

What are examples of recognition?

Answer 20

Verbal recognition and certificates.

Question 21

What is development?

Answer 21

A set of learning experiences designed to help employees enhance their applied skills and competencies.

Question 22

What are career opportunities?

Answer 22

A plan for employees to advance their career goals and may include an advancement to a more responsible position in an organisation.

Question 23

What is a lateral move?

Answer 23

A new job that’s at the same career level as your current job, but there are different duties.

Question 24

What are examples of development opportunities?

Answer 24

Seminars, OJT, coaching and mentoring.

Question 25

What are examples of career opportunities?

Answer 25

Overseas assignments.

Question 26

What is an employee's perspective on compensation? (2)

Answer 26

(1) source of income | (2) rewards for job well done

Question 27

What is a manager's perspective on compensation? (2)

Answer 27

(1) major expense | (2) used to influence employee behaviour

Question 28

What are the purposes of compensation? (3)

Answer 28

(1) To attract qualified employees (2) To retain competent employees (3) To motivate employees to perform their duties

Question 29

What are the components of total compensation? (3) Explain what it is mainly about.

Answer 29

(1) direct financial- pay (2) indirect financial- benefits (3) non-financial- job/environment

Question 30

Direct financial compensation consists of pay in the form of? (4)

Answer 30

(1) wages (hourly/daily) (2) salaries (monthly) (3) commissions (4) bonuses

Question 31

What does indirect financial compensation consist of?

Answer 31

Financial rewards that are not included in direct financial compensation.

Question 32

What are examples of indirect financial compensation?

Answer 32

Annual leave, medical leave, employee services and unique benefits.

Question 33

What is non-financial compensation?

Answer 33

``` Satisfaction that a person receives from the: (1) job (2) psychological environment (3) physical environment in which the person works. ```

Question 34

What are examples of non-financial compensation in the job?

Answer 34

Skill variety and autonomy.

Question 35

What are examples of non-financial compensation in the job environment?

Answer 35

Sound policies and conducive working conditions.

Question 36

What is compensation equity?

Answer 36

Equity in financial compensation.

Question 37

What is 'equity in financial compensation'?

Answer 37

Fair pay treatment for all employees.

Question 38

What are the types of compensation equity? (4)

Answer 38

(1) external (2) internal (3) employee (4) team

Question 39

What is external equity?

Answer 39

When a firm's employees are paid comparably with employees who work similar jobs in other firms.

Question 40

How to measure external equity?

Answer 40

Compensation surveys.

Question 41

What are compensation surveys for?

Answer 41

Enable firms to determine the extent to which external equity is present.

Question 42

What is internal equity?

Answer 42

When employees are paid according to the relative value of their jobs within an organisation.

Question 43

How to measure internal equity?

Answer 43

Job evaluation.

Question 44

What is job evaluation?

Answer 44

A primary means of measuring internal equity.

Question 45

What is employee equity?

Answer 45

When employees performing similar jobs for the same firm are paid according to factors unique to the employee.

Question 46

What are examples of factors unique to the employee?

Answer 46

Performance level and seniority.

Question 47

How to measure compensation equity?

Answer 47

Pay range.

Question 48

What is pay range.

Answer 48

A minimum & maximum pay rate, with enough variance between the two to allow for significant pay difference.

Question 49

What is team equity?

Answer 49

When teams are rewarded based on the group's productivity.