Striking the right balance (Web Sight)

The past and predictions for the future • Total rewards drivers • Finding the total rewards sweet spot • Performance management Survey highlights

Effectiveness in total rewards occurs when the right combination of elements are added to create value for the employee at a cost that works for the employer. But how does one reach that balance? The following sites identify strategies and look at total rewards past, present and future.

The past and predictions for the future

This is a PowerPoint presentation on the total rewards landscape. It lays out the four elements of compensation as cash, goods and services, equity, and time and place. It looks at common tactics used to make them effective components of a total rewards strategy and, conversely, how each might cause total rewards headaches. It then goes into a number of scenarios for what the employee compensation future might look like and poses some “wild predictions.”

Total rewards drivers

This brief article from Mercer Human Resource Consulting examines how total rewards practices need to evolve to meet changes in the workplace. It looks at cost as a driver for total rewards. The author states, “salaries in the Canadian private sector will rise by about 3.4 per cent, and benefits and pension costs are rising more quickly than salaries. This will compel more organizations to take a critical look at how they reward people, and to focus on the link between pay and business performance.” The article also looks at executive compensation and talent management as other factors that drive the need for total rewards.

Finding the total rewards sweet spot

This paper looks at finding the “sweet spot” in total rewards — striking the right balance between effectiveness and cost. It lists the three key elements to consider for achieving ROI: alignment, employee value and cost. It also looks at the process of creating an effective, valuable total rewards system. “The right total rewards approach for each organization evolves from a collaborative process with three broad stages: discover, invent and deliver.” The paper details what each stage involves and what should be accomplished. Diagrams are used throughout to illustrate key points.

Performance management Survey highlights

This report from Towers Perrin — despite a long and awkward URL — is a useful snapshot of how cost pressures are shaping trends in performance management and rewards and what high-performing firms do differently. The report is based on a survey of about 300 respondents from major American and Canadian organizations, 78 per cent of whom are primary decision-makers for their rewards programs. Visitors will find a number of interesting visuals graphing results from the survey. It’s definitely worth all the typing.

Shannon Simson is Canadian HR Reporter’s resource editor.

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