1. TOTAL REWARDS PLANS
Adapting, Adopting or Re-
design
Module 7: Adapting, Adopting or Re-Design the total Reward Plan
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2. AGENDA
 Purpose of the Presentation
 Alternative compensation Approaches
 Total Rewards Philosophy Review
 Compensation- Current State/Future State
 Building a Compensation Structure
 Future Trends and Future Plans
Module 7: Adapting, Adopting or Re-Design the total2Reward Plan

3. ALTERNATIVE APPROACHES
 Developed a Total Rewards Philosophy
 Re-examined current situation
 Reviewed recent market studies
 Hired compensation consultant
 Reviewed internal processes
 Job evaluation methodology
 Defined our desired future state
 Determined what to focus on first
Module 7: Adapting, Adopting or Re-Design the total3Reward Plan

4. PHILOSOPHY GOALS
 Reinforce the WSSC’s Mission, Vision, Core Strategies, and
Core Values
 Increase accountability by offering more rewards to top
performers
 Attract, hire and keep employees
 Better manage dollars to reward employees
Module 7: Adapting, Adopting or Re-Design the total4Reward Plan

5. TOTAL REWARDS
PHILOSOPHY
 Total Rewards include:
 Pay or compensation
 Benefits
 Employee recognition
 Career opportunities
 Opportunity to work for an organization with an important
mission
Module 7: Adapting, Adopting or Re-Design the total5Reward Plan

6. TOTAL REWARDS PHILOSOPHY
Compensation piece of the Total Rewards Philosophy
states :
 Performance based pay system
 Compare salaries internally and externally
 Target compensation positioning in the market
Module 7: Adapting, Adopting or Re-Design the total6Reward Plan

7. WHY DO WE NEED TO DO THIS?
 To be competitive with the local area especially with jobs that
are in high demand and low supply i.e. Engineers
 Allows us to hire and retain employees who will be replacing
our retirees
• Replacing approx. half of our workforce in the next 5-10 years
 New generation in the workforce concerned more with the
salary than healthcare benefits & retirement plans
 World Class organizations use a market based system
Module 7: Adapting, Adopting or Re-Design the total7Reward Plan

8. CURRENT STATE FUTURE STATE
 Structure is built from point factor  Structure is built from market data
 Hiring many new employees close  Retains and attracts employees
to the max of the range  Allows flexibility in hiring “high
 Does not allow flexibility in hiring demand/low supply” jobs
“high demand/low supply” jobs  Strengthen our competitive position
 Promotional increases move  Provides flexibility in rewarding
employees closer to the maximum performance
of the pay grade
 Perception employees leave for
higher pay  HR will track exit data
 No documentation to support
No pay cuts COLA will not go away
Module 7: Adapting, Adopting or Re-Design the total8Reward Plan

9. GAP ANALYSIS: Between current
reward practices / strategy and
industry best practices
 Structure alternatives
 Built from market data
 Our market includes:
 Industry average
 Market Leader
 Market Follower
 Focus groups
 Conducted 15 focus groups- 150 employees
 10% of the organization’s population
Module 7: Adapting, Adopting or Re-Design the total9Reward Plan

10. CLOSING THE GAP: Re-design,
Adapt or Adopt
 Review and update all of the job descriptions with the
departments
 Market price all of the benchmark jobs
 Build structure from the benchmark jobs market data
 Slot the non-benchmark jobs into the structure
 Internal audit of job slotting
 Assess employees’ salaries against the new structure
 Propose new structure and implementation plan
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Module 7: Adapting, Adopting or Re-Design the total Reward Plan

11. LEGAL and COST considerations
 Alignment with Talent Acquisition, Retention, Performance
Management and Succession Management
 Updated job descriptions
 Financial impacts
• Some employees will no longer be maxed out
• Some employees may be red-circled
• Market adjustments
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Module 7: Adapting, Adopting or Re-Design the total Reward Plan

12. FUTURE TRENDS & FUTURE
PLANS
 Move forward with next steps
 Review job descriptions
 Salary Survey
 Best Practices
 Variable compensation
 Periodic updates
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Module 7: Adapting, Adopting or Re-Design the total Reward Plan