The document outlines the agenda and content for the first day of the Smart-Link Consultancy Remuneration and Rewards Summit 2014. The day will include workshops on strategic total rewards management, utilizing rewards to attract and retain talent, engaging and motivating employees, and benchmarking rewards programs. Specific topics that will be covered include rewards strategies, compensation practices, performance management, and employee motivation. The goal is to help organizations develop effective and aligned total rewards programs.

1. SMART-LINK CONSULTANCY
REMUNERATION AND
REWARDS SUMMIT 2014
PREMIER HOTEL OR TAMBO
CHARLES COTTER
11 JUNE 2014 (DAY 1)

2.  INTRODUCTION AND INTRODUCTORY ACTIVITY (DIAGNOSIS)
 WORKSHOP A: STRATEGIC TOTAL REWARDS MANAGEMENT (STORM)
 WORKSHOP B: UTILIZING STORM TO ATTRACT AND RETAIN THE BEST
TALENT
 WORKSHOP C: UTILIZING STORM TO ENGAGE AND MOTIVATE
EMPLOYEES TO ACHIEVE IMPROVED LEVELS OF PRODUCTIVITY
 WORKSHOP D: BENCHMARKING, MEASURING AND EVALUATING THE
IMPACT OF STORM
WORKSHOP OVERVIEW (DAY 1)

3.  Refer to pages 6-19 of the Delegate hand-out
 Definition of Rewards Management
 Objective of Rewards Management
 Types of rewards
 The components of Total Rewards
 The evolution of Rewards Management
 Best Practice Rewards Management
INTRODUCTION

4. TYPES OF REWARDS

5. THE EVOLUTION OF REWARDS
MANAGEMENT

6. BEST PRACTICE REWARDS
MANAGEMENT PRINCIPLES

7.  #1 Your organization offers competitive and market-related (above market-
related) remuneration packages to employees (prospective employees).
 #2 Your organization adequately and accurately recognizes the knowledge,
skills, competencies and experience of employees and rewards them
accordingly.
 #3 Your organization applies fairness in methods, procedures and practices
for compensating, recognizing and rewarding employee contributions.
 #4 Your organization applies equitable methods, procedures and practices
for compensating, recognizing and rewarding employee contributions.
 #5 Your organization promotes transparency through sharing information
about their compensation practices, pay rates criteria and how they are
determined – especially at the managerial and executive levels.
DIAGNOSIS OF CURRENT REWARDS
MANAGEMENT PRACTICES

8.  #6 Your organization applies consistency (standardization) in the
allocation of remuneration and rewards e.g. performance bonuses and
incentives etc., thereby serving as a retention and motivation
mechanism.
 #7 Your organization’s applies objectivity throughout the performance
management process, as the pre-cursor and chief determinant of
performance bonuses.
 #8 Your organization has an efficient, user-friendly and stream-lined job
evaluation and job grading process.
 #9 The value of remuneration and rewards offered by your organization
is affordable (feasible) promoting business sustainability and
continuity.
 #10 Your organizations’ rewards system is effective in that to directly
contributes to and enables the achievement of business management
goals e.g. higher levels of retention, productivity and performance.
DIAGNOSIS OF CURRENT REWARDS
MANAGEMENT PRACTICES

9.  Contextual introduction to STORM
 The strategic imperative of Rewards Management
 Defining the fundamental concepts
 Creating/Developing a reward strategy
 Implementing Strategic Rewards Management
WORKSHOP A: STRATEGIC TOTAL REWARDS
MANAGEMENT (STORM)

10.  An effective total rewards strategy enables organizations to
deliver the right amount of rewards, to the right people, at the
right time, for the right reason.
 Best Fit vs. Best Practice vs. Hybrid (integration)
 Reward strategies must be anchored in business reality to be
effective. Which means linking it to your business strategy, the
needs of your employees as well as your organization.
 “Effective reward is about finding the right reward programs for
the strategic direction of your business.” (Tom McMullen)
 Appropriate Total Rewards Framework
CONTEXTUAL INTRODUCTION TO
STORM

12.  “Effective reward is about finding the right reward programs for
the strategic direction of your business.” (Tom McMullen)
 Strategic reward management involves the formulation and
implementation of an equitable reward system that is congruent
with the organization’s strategic objectives.
 The reward system must be congruent with the management
style and other organizational systems, in particular,
communication and decision-making. (Lawler)
 To be effective, a total rewards package must tie together the
organizational strategy, workforce strategy, and HR
strategy. Total rewards should align each employee with the
organizational objectives.
THE STRATEGIC IMPERATIVE OF
REWARDS MANAGEMENT

13.  Strategic reward is based on the design and
implementation of long-term reward policies and practices
to closely support and advance business or organizational
objectives as well as employee aspirations.
 The concept of total reward encompasses all aspects of
work that are valued by employees, including elements
such as learning and development opportunities and/or an
attractive working environment, in addition to the wider
pay and benefits package.
 Links between strategic and total reward
DEFINING THE FUNDAMENTAL
CONCEPTS

14. COMPONENTS OF TOTAL REWARD
STRATEGY

15.  Holistic
 Best fit
 Integrative
 Strategic
 People-centred
 Customized
 Distinctive
 Evolutionary
CHARACTERISTICS OF TOTAL
REWARD SYSTEM

16.  Advantages/Benefits:
Economic: Creates affordable and sustainable costs
Financial: Generates maximum return on the reward
program investment
Strategic and Performance-related: Connects with the
business strategy to create a high performance culture
Reputational: Supports the employment brand
BUILDING A BUSINESS CASE FOR
STORM

17.  Costs/drawbacks:
Management: Managerial apathy
Cultural: Organizational cultural resistance and readiness
Provision: The supply of resource-constrained rewards
(across the board)
Weighting: Attempting to measure the comparative value
of certain rewards
BUILDING A BUSINESS CASE FOR
STORM

18.  Step 1: Define the context and issues (environmental analysis)
 Step 2: Set the total reward strategy (guiding principles and reward
priorities)
 Step 3: Set reward change agenda (status quo relative to desired end state)
 Step 4: Implementation overview
 Step 5: Design individual plans
 Step 6: Implement
 Step 7: Measure and manage
 Outcome: A cohesive and comprehensive reward strategy that is both
value-oriented and cost-effective and aligned with the organization's
business strategy.
CREATING/DEVELOPING A REWARD
STRATEGY (7-STEP PROCESS)

19.  Develop a business case for Strategic Total
Rewards Management (STORM). Do the
benefits outweigh the costs? Justify and
motivate your viewpoint.
SYNDICATE GROUP LEARNING
ACTIVITY 1

20.  Total Rewards Statement (TRS)
 Strategic Talent Attraction:
Employee Value Proposition (EVP)
Employer Branding
WORKSHOP B: UTILIZING STORM TO
ATTRACT AND RETAIN THE BEST TALENT

21. TRS PROCESS FLOW

22.  Organizations need to communicate the total rewards provided to each
individual employee, demonstrating the organization's investment in
ensuring employees are competitively rewarded for their skills,
contribution and performance.
 The rewards package that you provide to your employees is among your
organization's most significant investments.
 Total reward statements may help reduce turnover and increase retention
rates
 A Total reward statement provides employees with a personalized
document that communicates the overall value of their financial rewards
such as base pay, incentives and employee benefits.
 Total reward statements can also be used to reinforce the communication
of less tangible benefits such as work/life programs, learning and
development and flexible work arrangements.
TOTAL REWARDS STATEMENTS
(TRS) – RATIONALE AND VALUE

23.  To attract, motivate and retain employees.
 Differentiation: To reinforce your brand and set yourself
apart from other organizations.
 Raise awareness and appreciation by focusing attention
on the benefits you offer.
 To reduce the cost of benefits administration by providing
an employee self-service tool that results in fewer phone
calls thereby enabling HR to focus on more strategic
initiatives.
OBJECTIVES OF TRS

24. BENEFITS OF TRS

25.  Objective: Magnetically attracting the “Cream of the
Crop”
 Objective: Facilitating an optimal Person-
Environment (P-E) fit
 Strategy: Developing, articulating and advocating of
a compelling Employee Value Proposition (EVP)
 Strategy: Employer Branding – (re) positioning as an
“Employer of Choice”
STRATEGIC TALENT ATTRACTING

26.  A resourcing strategy is concerned with shaping what an organization has
to offer to people to join and stay in the organization. (Armstrong, 2011)
 EVP is a statement of what an organization will provide for people that
they will value - why the total work experience at their organization is
superior to that at other organizations.
 The EVP is an employee-centered approach that is aligned to existing,
integrated workforce planning strategies because it has been informed by
existing employees and the external target audience.
 Key Selling Points (KSP): Host of financial and non-financial benefits
 Non-financial benefits:
 The attractiveness of the organization
 Responsibility – corporate conduct, ethics and CSR/CSI
 Respect – diversity and inclusiveness
 Work-life balance
 Opportunities for personal and professional growth
EMPLOYEE VALUE PROPOSITION
(EVP)

27. COMPONENTS OF VIABLE EVP

28. HISTORICAL EVP’S

29.  “At Campbell Arnott’s, we are committed to attracting a diverse group
of talented employees and providing all our team members with
development opportunities and a culture in which they can flourish.”
CONTEMPORARY EXAMPLE:
CAMPBELL ARNOTT’S

30.  Unique Selling Points (USP) - Employer brand that is
unique and special
 Creation of a Brand image of the organization for
prospective employees
 Influenced by the reputation of the organization
 Creating an Employer Branding strategy
EMPLOYER BRANDING

31.  Analyze what ideal (preferred) applicants need and want
 Establish how far core values of the organization support the
creation of an attractive brand and ensure these are inculcated
into organizational value system
 Define the features of the employer brand on the basis of
examination and review of each of the areas that affect the
perception of people e.g. quality of management
 Benchmark the approaches of top performing companies as a
means of improvement
 Pragmatic approach: be honest and realistic
CREATING AN EMPLOYER BRANDING
STRATEGY

32. THE LINK BETWEEN TALENT ATTRACTION
AND EMPLOYEE ENGAGEMENT

33.  For a defined organization, craft and develop the
following key statements as a form of attracting and
retaining top talent:
Total Rewards Statement (TRS)
Employee Value Proposition
Employer brand
SYNDICATE GROUP LEARNING
ACTIVITY 2

34.  Employee motivation
 Recognition and praise
 Employee Engagement
WORKSHOP C: UTILIZING STORM TO ENGAGE AND
MOTIVATE EMPLOYEES TO ACHIEVE IMPROVED
LEVELS OF PRODUCTIVITY

35.  “INSIDE JOB” - A motive is an inner drive, stimulus or
incentive to satisfy a human need of some kind.
 “CUSTOMIZATION” - People differ from one another and
no one has the same needs so people will be motivated
differently. “Different strokes for different folks.”
 “CITIZEN KANE” – Employees who experience a
heightened sense of emotional connection with the
organization, demonstrate higher levels of motivation.
 “MONEY MYTH” – “financial rewards are more of a mover
than a motivator”
CONVENTIONAL WISDOM REGARDING
MOTIVATION – FACT OR FICTION?

36.  Business Leaders and Managers need to transform from
applying Compliance-driven (extrinsic) motivational
strategies to Commitment-driven (intrinsic) strategies
 Business Leaders and Managers need to adopt a targeted
(rifle) approach and not a hit and miss (shotgun) approach
to employee motivation – “one size fits all” is inappropriate
 Business Leaders and Managers need to transform
employees into associates (sense of ownership) and
brand/company ambassadors
 Business Leaders and Managers need to develop a
bouquet of recognition-oriented strategies and de-
emphasize the value of monetary rewards
MANAGEMENT LESSON – CONVENTIONAL
WISDOM REGARDING MOTIVATION

37. WHAT MOTIVATES EMPLOYEES?

38.  #1 Job and Organizational Cultural Fit
 #2 Conducive Work Environment
 #3 Policies, procedures and work practices
 #4 Trust and Relationship Management
 #5 Meaningful Work and Responsible Tasks
DIAGNOSE CURRENT LEVELS OF MOTIVATION
- GENERIC MOTIVATIONAL STRATEGIES

39.  #6 Participatory Management and Leadership
practices
 #7 Performance Feedback and Recognition
 #8 Customized Rewards
 #9 Career, Learning and Development opportunities
 #10 Employee Engagement
DIAGNOSE CURRENT LEVELS OF MOTIVATION
- GENERIC MOTIVATIONAL STRATEGIES

40.  Only 18% of employees are satisfied with their jobs
 Only 10% of employees look forward to going to work
everyday
 70% of the workforce are more motivated by (favour) non-
monetary rewards
 79% of employees who resign cite a lack of appreciation as
the main reason
 Only 12% of employees actually leave for more money
MOTIVATION – INTERESTING
STATISTICS

41.  20% of employees are actively seeking new jobs
 83% of executives and 84% of employees rank having
engaged and motivated employees as the top
factor that substantially contributes to a company’s
success
 There is a correlation between employees who say
they are “happy at work” and feel “valued by their
company,” and those who say their organization has
a clearly articulated and lived culture
MOTIVATION – INTERESTING
STATISTICS

42. MOTIVATIONAL APPROACHES
CARROT STICK

43.  EMPLOYEE
 MANAGER
 (WORK) ENVIRONMENT
3 KEY COMPONENTS OF
MOTIVATION
EMPLOYEE
ENVIRONMENT
MANAGER

44. PERCEPTUAL GAP

45. FUN
OPPORTUNITIES FOR GROWTH
RECOGNITION
EMPLOYEE ENGAGEMENT
ESCALATING MOTIVATION TO THE
F-O-R-E

46.  90% of employees find a fun working environment very/extremely
motivating
 Collegial working relations - 80% of employees value working for
people that they like
 Technology-enabled Gamification - 70% of Forbes Global 2000
companies are using gamified platforms as a way to boost
employee engagement, retention, and revenues
 Objective: Design an “Industrial Playground”
 Conducive and Positive Work Environment
 Celebrating work success and creating corporate “Rituals”
FUN

47.  Retention - 76% of employees cited opportunities for growth were
the top reason why they stayed in organizations. In every age and
demographic category, opportunities for growth were more of a
motivating reason to stay in an organization than pay increases
 Managers should apply a strengths-based approach to employee
development
 Establish a Learning Organization, climate and culture
 Learning, Development and Empowerment Opportunities
 Career Development and Advancement
 Mentoring and Coaching
 Creativity and Innovation through Action Learning
 Collaboration
OPPORTUNITIES FOR GROWTH

50.  40% of employees who do not meaningfully feel
recognized will not go above and beyond their formal
work responsibilities to get the job done. 86% of those
who feel recognized will.
 83% of employees cited recognition for contributions is
more fulfilling than rewards and gifts.
 Type of recognition matters – 68% favoured individual
above team-based recognition; 88% found recognition
from their managers as very/extremely motivating and 76%
found praise from peers as very/extremely motivating.
 Recognition strategies
RECOGNITION - STATISTICS

51. RECOGNITION - STATISTICS

52.  Create a Fabulous Work Environment with Praise
 Employees Need Praise
 What Praise Can Give Employers
 How to Give Praise
THE POWER OF PRAISE AND
RECOGNITION

53.  Engagement happens when people are committed to their work
and the organization and motivated to achieve high levels of
performance
 Engaged employees at work are positive, interested in and even
excited about their jobs and are prepared to put discretionary
effort into their work beyond the minimum to get it done
 Say
 Stay
 Strive
DEFINING EMPLOYEE ENGAGEMENT

54.  The Global Assessment Trends Report (GATR) (2013 Global
Assessment Trends Report - SHL.com) identifies the top priorities
for HR globally as follows: Engagement and retention (55%)
 71% of employees are disengaged
 Highly engaged employees are 26% more productive than
disengaged employees
 Companies earned 13% greater total returns for shareholders over a
5-year financial period
 90% of leaders think an engagement strategy will impact business
success
 Only 40% of the workforce knew about their company’s goals,
strategies and tactics
EMPLOYEE ENGAGEMENT –
INTERESTING STATISTICS

55.  71% of employees are disengaged:
45% are not engaged
26% are actively disengaged
29% of the workforce are engaged
CURRENT DEGREE OF EMPLOYEE
ENGAGEMENT
Engaged
29%
Not Engaged
45%
Actively
disengaged
26%

56. THE VALUE OF EMPLOYEE
ENGAGEMENT

57.  According to Gallup (2013), employers can reap the following benefits of an
engaged workforce:
 202% better performance
 $11 billion is lost annually due to employee turnover
 Direct correlation to 9 key business performance indicators
BENEFITS OF EMPLOYEE
ENGAGEMENT

58.  Are employees COMMITTED to the organization?
 Are employees proud to work for the organization – company/brand
ambassadors? CITIZEN
 Do employees put forth extra/discretionary effort to help the
organization and their colleagues achieve business objectives?
COMRADE
 Are employees enthusiastic and passionate about their work/jobs?
CREATOR
 Are employees CONNECTED (intellectually and emotionally) to their
work/jobs – offer value add?
MEASUREMENT OF EMPLOYEE
ENGAGEMENT - 5c INDICATORS

59.  According to Dale Carnegie research:
Relationship with the immediate supervisor
Senior Leadership’s ability to lead the company and communicate
its goals
Organizational Pride - vision of organization and corporate social
responsibility
KEY DRIVERS OF EMPLOYEE
ENGAGEMENT

60.  Work
 People
 Opportunities
 Total rewards
 Company practices
 Quality of Work Life
KEY DRIVERS OF EMPLOYEE
ENGAGEMENT

61.  According to Gallup (2013), three (3) strategies to accelerate
employee engagement are:
Select the Right People and Managers
Develop employees’ strengths
Enhance employees’ well-being
STRATEGIES TO DEVELOP
EMPLOYEE ENGAGEMENT

62.  According to Armstrong (2011), the five (5) strategies to
enhance employee engagement are:
 The work itself
 The work environment
 Leadership
 Opportunities for personal growth
 Opportunities to contribute
STRATEGIES TO DEVELOP
EMPLOYEE ENGAGEMENT

63.  According to Dale Carnegie research:
 Senior managers must articulate the company vision in a clear and
compelling way
 Senior managers need to define organizational goals and objectives in
realistic, clear and attainable manner
 Leaders should project a positive manner with employees, and be
accessible
 Leaders should ensure that employees understand how their role
contributes to the overall company success
 Senior leaders should create a climate of trust and encourage managers to
demonstrate that they care about employees (on personal level)
LEADERSHIP STRATEGIES TO
DEVELOP EMPLOYEE ENGAGEMENT

64.  According to Dale Carnegie research:
 Managers should determine how each employee’s personal motivators align with
organizational goals
 Managers should praise publicly, reprimand privately and coach team members who
demonstrate disengaged behaviour
 Employees should be encouraged to communicate clearly and provide input into the
company vision
 Direct managers should foster healthy relationships with employees
 Senior leadership should continuously demonstrate that employees have an impact on
their work environment
 Managers should show that employees are valued as true contributors, giving them a
sense of empowerment
STRATEGIES TO DEVELOP
EMPLOYEE ENGAGEMENT

65.  According to Gallup (2013) research, the best organizations
deeply integrate employee engagement into the following four
areas:
Strategy and Leadership Philosophy
Accountability and Performance
Communication and Knowledge Management
Development and on-going Learning Opportunities
BEST PRACTICE EMPLOYEE
ENGAGEMENT

66.  Describe which motivational strategies can be
applied in your organization to reward employees
and boost performance and productivity.
 Describe which employee engagement strategies
can be applied in your organization to enhance
retention and productivity levels.
SYNDICATE GROUP LEARNING
ACTIVITY 3

67.  Benchmarking STORM
 Annual STORM reviews
 Best practice guidelines and principles
WORKSHOP D: BENCHMARKING, MEASURING AND
EVALUATING THE IMPACT OF STORM

68.  Question: How do you know if your rewards program is
offering the right levels of total remuneration to recruit
and retain staff?
 Benchmarking offers a useful tool to answer this question.
Benchmarking aims at improving performance - a search
that never ends. Therefore, benchmarking is not a single
action but a continuous, cyclical process.
 Performance Assessment
 Performance Improvement
BENCHMARKING

69. P-D-C-A BENCHMARKING CYCLE

70. REMUNERATION REVIEW PROCESS

71.  A clear, executable remuneration philosophy aligned
with business strategy
 Employee-centricity
 Investment in front-line manager capability
 Well thought-through decision-support data and
tools
 A continual process, not a one-off project
5 KEY FOCUS FOR STRONG REMUNERATION
EXECUTION (AON HEWITT)

72.  Review your programs and rewards frequently to keep them aligned with
corporate goals as well as employee expectations.
 Measure the effectiveness and impact of your reward and recognition
programmes.
 Create a performance measurement framework so you can measure the
impact of your reward and recognition programme.
 Track the performance metrics that form the basis of your reward structure
and conduct surveys to gain qualitative feedback from employees and
supervisors.
 24% of participants do not measure reward and recognition programme
success.
 Measure your reward and recognition programme impact and improve
based on your results.
EVALUATION GUIDELINES

73. METHODS FOR MEASURING REWARD AND
RECOGNITION PROGRAMME SUCCESS

74.  Explain the best practice methods and
process that your organization will apply in
the benchmarking, reviewing and measuring
of your Strategic Total Rewards Strategy.
SYNDICATE GROUP LEARNING
ACTIVITY 4

75. Key points
Questions
SUMMARY

76.  CHARLES COTTER
 084 562 9446
 charlescot@polka.co.za
 LINKED IN
 TWITTER: Charles_Cotter
CONTACT DETAILS