Pay People Right Zingheim & Shuster

1. Pay People RightZingheim & Shuster Chapter 2 The Business Case for Changing Rewards

2. Value of the Business Case • Pay is a powerful communicator of values and direction • Companies must make profit and increase shareholder value • Executives need justification to make change • The business case justifies change to the workforce

3. The Better Workforce Deal • Covey: “Win-win or no deal” • Third in a series of “deals” • The Old Workforce Deal • The New Workforce Deal • The Better Workforce Deal • Chart, page 24

4. Business Reasons for Changing Rewards • Define the reason for needed pay changes • Your company and it’s business case • The workforce and the business case

5. Total Pay Diagnostic • Evaluating the Business Situation • Determining Total Pay Alignment • What Should Your Company Do?

6. Articulating the Business Case for Change • Straightforward Message • Critical Stories to Tell • Why • Present state • Impetus for change • Case Examples • Owens Corning – Skills/performance • Monsanto - Competencies

7. Where the Reward Principles Apply in the Business Case • Principle 1 – It’s not possible to make people comfortable with change unless they see the value and understand the reasons • Principle 2 – Articulate the business goals and outline the win-win so people can see why total pay must change and what’s in it for them

8. Where the Reward Principles Apply in the Business Case • Principle 3 – extend line of sight by showing people how they link to the KSA’s and outcomes the business needs to succeed • Principle 4 – integrate rewards so everyone gets a clear and consistent message about what is valued

9. Where the Reward Principles Apply in the Business Case • Principles 5 and 6 – The business case may include rewarding individual ongoing value with base pay and rewarding results with variable pay to accelerate a successful win-win partnership