8: Rewards & Compensation

Compensation reflects the value of the revenue they make and the niche skills that they possess.

Examine how to reward people to keep them engaged.

Always connects to business strategy: budget, market, attraction.

Considerations:

• Total rewards: everything you’ve received as an employee.

  • Direct compensation: base pay, overtime pay, discretionary variable pay, sales compensation

  • Indirect compensation: equity/stock, employee protection, non-monetary, sales. Value we will receive in the future.pr

    • retirement; education; flexible work conditions.

Incentive plans: a type of employee compensation structure that uses certain rewards to motivate team members to work harder and achieve specific goals. Variable and discretionary.

• Profit sharing, gifts, stock options, registered share units. Retention strategy.

• These are used to reward future work. If you achieve this in the future, I will pay you this future amount.

• What behaviours and work does the company want to motivate?

• In contrast with wages that pay for work done in the present.

Organizations often offer these incentives to executives.

Benefits: always on the final!

• Legally required benefits: Many of the benefits we collect from the government is collected through EI. Employers must take money, and must give it to the government. It is available for you when you aren’t being paid by your employer.

  • Employment Insurance

  • Workers Compensation

• Discretionary benefits: health/dental/prescriptions/tuition supports/flexible work

  • Not required by law. Companies use this to attract and retain talent.

  • Includes sick leave.