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Pay People Right Zingheim & Shuster

Pay People Right Zingheim & Shuster. Chapter 1 Total Rewards and the Six Principles. Reward Principles. Create a positive and natural rewards experience Align rewards with business goals to create a win-win partnership Extend people’s line of sight Integrate rewards

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Pay People Right Zingheim & Shuster

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  1. Pay People RightZingheim & Shuster Chapter 1 Total Rewards and the Six Principles

  2. Reward Principles • Create a positive and natural rewards experience • Align rewards with business goals to create a win-win partnership • Extend people’s line of sight • Integrate rewards • Reward individual ongoing value with base pay • Reward results with variable pay

  3. Create a Positive and Natural Reward Experience • Involvement in the process • Communicate and educate • Changes must be made as positive as possible within the constraints of the business message • Examples, Monsanto, GE, Microsoft, Intel, others

  4. Align Rewards with Business Goals to Create a Win-Win Partnership • People as stakeholders • Alignment creates value for stakeholders • Rewards emphasize performance at the point where customers measure value • Company must feel it’s getting value, and people must believe company expectations are reasonable

  5. Extend People’s Line of Sight • Company financial performance and customer satisfaction may appear remote • Connect the person to these element through appropriate pay systems • People become dislodged when their goals are only a short distance away, and don’t appear to relate

  6. Integrate Rewards • Use each reward tool for what it does best • Many facets • Create a combination that: • Supports the role the company wants its people to play • Defines how the workforce shares the results of the organization’s success

  7. Reward Individual Ongoing Value with Base Pay • Three dimensions that determine the value of an individual to the organization: • The skills and competencies that the company needs and the individual utilizes to generate results • The individual’s consistent performance over time, whether individual results or contribution to team results • The individual’s value relative to the labor market

  8. Reward Results with Variable Pay • Companies need results • People make those results happen • Rewards based on results • Variable pay is the primary (paramount) method for linking the workforce to customer goals, extending line of sight, and sharing in the success of the enterprise (Author’s perspective)

  9. Components of Total Rewards • Individual Growth • Compelling Future • Total Pay • Positive Workplace

  10. Individual Growth • Investment in People • Development and Training • Performance Management • Career Enhancement

  11. Compelling Future • Vision and Values • Company growth and success • Company image and reputation • Stakeholdership • Win-win over time

  12. Total Pay • Base pay • Variable pay, including stock • Benefits, aka indirect pay • Recognition and celebration

  13. Positive Workplace • People focus • Leadership • Colleagues • Work itself • Involvement • Trust and commitment • Open communications

  14. Total Reward Strategy • Impact on Total Reward Strategy of: • Business Strategy • Organization Design • Human Resource Strategy • Workforce • Company Culture

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