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Compensation & Total Rewards Strategy

Compensation management and total rewards strategies play a crucial role in attracting, motivating, and retaining talent. The chapter outlines the components of total rewards, emphasizing the balance between fixed pay, variable incentives, benefits, and non-monetary rewards to enhance employee satisfaction while supporting business objectives.

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Sections

  • 1

    Components Of Total Rewards

    This section outlines the essential elements that comprise a total rewards strategy, including compensation, benefits, recognition, and work-life balance.

    Learning Practice

  • 2

    Designing A Compensation Structure

    This section outlines the essential components involved in designing a competitive and equitable compensation structure that aligns with business goals.

    Learning Practice

  • 2.1

    Job Evaluation

    Job evaluation is the process of determining the value of a job within an organization based on various factors, ensuring equitable compensation.

    Learning Practice

  • 2.2

    Market Benchmarking

    Market benchmarking involves using salary surveys to ensure compensation packages remain competitive within the industry.

    Learning Practice

  • 2.3

    Pay Grades & Bands

    This section discusses the mechanisms of pay grades and bands utilized in compensation structures.

    Learning Practice

  • 2.4

    Internal Equity & Transparency

    This section emphasizes the importance of maintaining fairness and transparency in compensation structures across similar roles within an organization.

    Learning Practice

  • 3

    Incentive & Variable Pay Programs

    This section discusses various types of incentive and variable pay programs used to enhance employee motivation and align their performance with organizational goals.

    Learning Practice

  • 3.1

    Performance Bonuses

    This section focuses on the various types of performance bonuses that serve as incentives for employees, linking compensation to measurable performance outcomes.

    Learning Practice

  • 3.2

    Sales Commissions

    Sales commissions are variable pay incentives designed to boost sales performance by linking compensation directly to the revenue generated by employees.

    Learning Practice

  • 3.3

    Profit Sharing

    Profit sharing is a compensatory system that incentivizes employees by linking their rewards to the company’s financial performance.

    Learning Practice

  • 3.4

    Stock Options/esops

    This section discusses stock options and Employee Stock Ownership Plans (ESOPs) as incentive and variable pay programs that can enhance employee ownership and motivation.

    Learning Practice

  • 4

    Non-Monetary Rewards & Employee Value

    This section emphasizes the importance of non-monetary rewards in enhancing employee satisfaction and value within organizations.

    Learning Practice

  • 5

    Compliance, Pay Equity & Transparency

    This section focuses on ensuring compliance with legal obligations and fostering pay equity within organizations.

    Learning Practice

References

Chapter 8_ Compensation & Total Rewards Strategy.pdf

Class Notes

Memorization

What we have learnt

  • Total rewards consist of co...
  • A competitive and fair comp...
  • Aligning incentives with or...

Final Test

Revision Tests

Chapter FAQs