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Pay People Right Zingheim & Shuster

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Presentation on theme: "Pay People Right Zingheim & Shuster"— Presentation transcript:

1 Pay People Right Zingheim & 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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