TOTAL REWARD
Every organization’s total rewards plan must be compliant with applicable laws and regulations and be cost-effective and affordable for the organization. A well-crafted plan will be able to achieve its overall goals and objectives while working within the reality of fiscal constraints.
Assuming that the compensation and benefits system is legal and affordable, its basic objective is to provide the employer and the employees with an approach for compensating employees that is:
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Compatible with the organization’s mission and strategy.
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Compatible with the organizational culture.
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Appropriate for the workforce.
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Internally and externally equitable.
Organizational Mission and Strategy
All organizations, regardless of their type of business, profit status, profit margins, size, or private or public status need to have their compensation and benefits systems support their organizational missions and strategies. Therefore, the first consideration in developing a compensation and benefits system is to review the organization’s mission and its strategy.
Larger and more mature organizations generally have a strategic business plan that outlines the basic directions and goals that guide the organization over time. The organization’s HR strategy should be adjusted to accommodate updates to the strategic business plan. The compensation and benefits system should be an outgrowth of the strategic business plan and the HR strategy. Smaller and newer organizations may not formally define their strategies; in this case, the HR professional may consider other indicators, such as where the organization is in its life cycle—is it downsizing or expanding, acquiring or being acquired, profitable or unprofitable? Or does the organization promote from within (organic growth) or hire from the outside (inorganic growth)?
An employer must generate sufficient revenue to cover expenses. The degree of market competition, the level of product demand, and industry characteristics all have an influence on compensation and benefits packages, as does the organization’s life-cycle stage. But large or small, an organization’s compensation and benefits package must support organizational goals and objectives. In the end, the total rewards plan should be compatible to attract the right people to the right jobs at the right time and place. It should also be at the right cost and should provide appropriate performance incentives to produce engaged employees who are loyal to the organization and drive organizational success.
Based on the organizational and grading structure we design and implement remuneration systems considering specific company achievements, culture, individual performance, and best industry practices which comprises of:
Base pay design – the process of establishing the salary scales based on the results obtained from the job evaluation and the compensations level existent in the market.
Performance bonus scheme design – relate the Management by Objectives process (MBO) with offering a variable pay, based on the target achievement level, The reward communication plan – publishing and reinforcing to the employees the advantages included in the benefits package etc.
Non-cash incentives and benefits - detailed analysis of the current incentives and benefits package and its market value, having in mind the organization’s business goals and cultural values. We design a plan that achieves the right balance between the different monetary and non-monetary elements of pay. Our solution captures different employee groups with their sphere of influence, interests and impact on business results to create flexible schemes and ensure high employee commitment.
Bonus schemes and long term incentive plans - based on client specific needs taking into account employee prospective and market practice. We provide structures which consider business results and assure alignment of overall remuneration packages to individual performance.