Unit 6 - Total Rewards
The Goals and Elements of a Total Rewards Strategy
• The Goals and Elements of a Total Rewards Strategy
• The objective a total reward program is to shape employee behaviour
• The goal is to increase:
• Membership Behaviour
• Candidates want to join your organization and employees want to stay
• Task Behaviour
• Employees do the tasks that are assigned to them
• Organization Citizenship Behaviour
• Employees are motivated to support the success of the organization
• Attract, retain and motivate employees
• Combination of intrinsic and extrinsic
Intrinsic vs. Extrinsic Rewards
• Argues that intrinsic factors influence work motivation, while extrinsic factors influence job satisfaction
Intrinsic Rewards
• relate to job content
• Feeling of self worth & satisfaction
• Task identity - doing the whole job
• Task Significance - social value
• Skill Variety - utilizing many skills
• Job Autonomy - freedom to act
• Job Feedback - self monitoring
• All lead to job enrichment
Extrinsic Rewards
• relate to job context
• Monetary Rewards / Direct Pay
• Base pay
• Performance pay
• Merit pay
• Short-term Incentives
• Long-term Incentives
• Compensation Strategy determines External Competitiveness
• Indirect Pay
• Health & wellness Benefits
• Retirement plans
• Time off with Pay
• Perquisites & Employee Services
• e.g. cars, clubs, education reimbursement
• Working Conditions
• Supervisor Behaviour
• Co-workers
,Organizational Total Rewards influenced by internal and external environment factors
• Different cultures influence
• Internal Environment
• Sector
• Growth Strategy
• Competitive Strategy
• Culture
• Demographics
• Unionization
• Nature of work
• External Environment
• Economy
• Labour Force
• Competition
• Regulatory
• Employment Standards
• Pay Equity
, Theories of employee motivation:
Content Therories of Motivation (driven by need)
• Maslow’s Hierarchy of Needs
• Basic Needs
• Low paying jobs more focus
• More likely to work over time
• More guarantee
• Herzberg’s Two-Factor Theory
• Suggests money is not a motivator
• Both can lead to dissatisfaction (overpaying vs underpaying)
• Enhance motivators that lead to satisfaction
• Minimize factors that lead to dissatisfaction
The Goals and Elements of a Total Rewards Strategy
• The Goals and Elements of a Total Rewards Strategy
• The objective a total reward program is to shape employee behaviour
• The goal is to increase:
• Membership Behaviour
• Candidates want to join your organization and employees want to stay
• Task Behaviour
• Employees do the tasks that are assigned to them
• Organization Citizenship Behaviour
• Employees are motivated to support the success of the organization
• Attract, retain and motivate employees
• Combination of intrinsic and extrinsic
Intrinsic vs. Extrinsic Rewards
• Argues that intrinsic factors influence work motivation, while extrinsic factors influence job satisfaction
Intrinsic Rewards
• relate to job content
• Feeling of self worth & satisfaction
• Task identity - doing the whole job
• Task Significance - social value
• Skill Variety - utilizing many skills
• Job Autonomy - freedom to act
• Job Feedback - self monitoring
• All lead to job enrichment
Extrinsic Rewards
• relate to job context
• Monetary Rewards / Direct Pay
• Base pay
• Performance pay
• Merit pay
• Short-term Incentives
• Long-term Incentives
• Compensation Strategy determines External Competitiveness
• Indirect Pay
• Health & wellness Benefits
• Retirement plans
• Time off with Pay
• Perquisites & Employee Services
• e.g. cars, clubs, education reimbursement
• Working Conditions
• Supervisor Behaviour
• Co-workers
,Organizational Total Rewards influenced by internal and external environment factors
• Different cultures influence
• Internal Environment
• Sector
• Growth Strategy
• Competitive Strategy
• Culture
• Demographics
• Unionization
• Nature of work
• External Environment
• Economy
• Labour Force
• Competition
• Regulatory
• Employment Standards
• Pay Equity
, Theories of employee motivation:
Content Therories of Motivation (driven by need)
• Maslow’s Hierarchy of Needs
• Basic Needs
• Low paying jobs more focus
• More likely to work over time
• More guarantee
• Herzberg’s Two-Factor Theory
• Suggests money is not a motivator
• Both can lead to dissatisfaction (overpaying vs underpaying)
• Enhance motivators that lead to satisfaction
• Minimize factors that lead to dissatisfaction
