Author Profile
Acknowledgments
Business Intelligence
Preface
Chapter 1: The New Context of Reward
What you will learn from this chapter
Introduction
1999: a benchmark year
The Ten Drivers of New Reward approaches and Practices
Reward Issues and Challenges: Research Findings
World at Work studies
Strategic Reward Shortcomings
Further Issues
Reward Issues and Challenges
Corporate and reward team agendas
Employees and employment
The Challenges of Implementing Total Reward
Performance, Reward and Culture
Overview: Why Rethink Reward Strategy?
Potential advantages
Consequences of inaction
Take the Self-Assessment Test
References
Chapter 2: Engagement, Value Creation and the Human
Dimension of Reward
What you will learn from this chapter
Introduction: People Make the Difference
Interpretations and Connections
How Companies Use Reward to Improve Performance
The Business Case and Potential Pay-offs
Levels of engagement
What human capital management can deliver
Implications for Practitioners
Human Capital and Reward
Optimizing value through reward
Valuing human capital
How companies make the connection between reward and human capital
Case Report: Royal Bank of Scotland
Case Report: Federal Express
Building Engagement into Reward
Connecting Engagement with Reward
How companies implement engagement policies
Case Report: St Luke’s Communications
Case Report: Google
The Value Proposition and Brand
Proposition and brand: simple questions
What employees Want: Expert Views
How companies build and deploy their corporate value propositions
Case Report: Starbucks
Case Report: Richer Sounds
Overview: Rethinking the Human Dimension of Reward
The Key Challenges Summarized
Take the Reward Human Dimension Self-Assessment Test
References
Chapter 3: Developing Total Reward Strategy
What you will learn in this chapter
Introduction: The Scope of Total Reward
The Difficulties Posed by Total Reward
Reward Philosophy and Design
The need for reward philosophy
The link between reward and best-employer rating
Influences on reward philosophies and design
The Importance of the Corporate Context for Reward
How Companies are Tackling Reward Philosophy
Case Report: The Hartford Group
Case Report: Babcock and Wilcox
Reward and Business Strategy
The essentials of well-designed reward strategies
The Issue of Effectiveness
How Companies and Experts Interpret Reward Strategy
Case Reports Office of Personnel Management
Two Reward Strategy Models
The Star Model
Reward Strategy Roadmap
Approaches to Total Reward
What total reward entails
Establishing the business case: the crucial first step
How Companies and Consultancies Approach Total Reward
Case Report: Borders Group
Institute and Consultancy Interpretations of Total Reward
Overview
Potential advantages
Possible difficulties
Take the Reward Strategy Self-Assessment Test
References
Chapter 4: The Shift to Total remuneration
What you will learn from this chapter
Introduction: Rethinking the Financial Deal
What’s New and What’s Emerging?
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THE TOTAL REWARD REPORT
The Potential Impact of Total Remuneration on Recruitment and Retention
Remuneration, Cost and Competitiveness
Cost containment and shifts in remuneration
The emphasis on long-term, sustainable performance
Strategic Remuneration Opportunities
How Companies are Tackling Cost Issues
Case Report: Nationwide Building Society
Case Report: Aflac Inc
Case Report: Lincoln Electric
Challenges in Total Remuneration Effectiveness
Pricing and ROI issues
Companies look to cover the cost of reward charges
Creating an Edge in Remuneration Strategy
Optimizing Total Remuneration Investments
Investment levels
Related costs
Competitiveness
Criteria for Regular Effectiveness Reviews
How Companies are Tackling Total Remuneration
Case Report: Cisco Systems
Case Report: Aflac Inc
Emerging Priorities in Pay, Bonus and Benefits
Sifting out what matters most
Priorities for base and variable pay
Defining criteria for differential rewards
Priorities for bonus use: the experts’ views
Priorities for benefits: the experts’ views
How Companies Tackle Pay, Bonus and Benefit Priorities
Case Report: Huntington Hospital
Case Report: Suncorp
Overview: Total Remuneration Reviews
Strategic tune-up for pay
Total remuneration review
Take the Total Remuneration Self-Assessment Test
References
Chapter 5: Building a Performance-Reward Culture
What you will learn in this chapter
Introduction: The Changing Context of Performance
Your total reward and performance management checklist
Expert Views on the Performance-Reward Focus
Tapping into the Discretionary Effort Factor
Satisfaction, motivation and reward expectations
Examples of Performance Cultures
Enabling High Performance across the Enterprise
What high performance organizations do well
Getting the Best from High Performers - and Others
The flow theory of engagement
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CONTENTS
How Companies are Paying for and Recognizing Performance
Case Report: Payless ShoeSource
Case Report: Graniterock
Improving and Aligning Performance Management with the Business
What performance management is all about
What good management performance looks like
How Companies are Tackling Performance Management Issues
Case Report: Office of Personnel Management (OPM)
Case Report: Daimler Chrysler
Performance Levers and Reinforcers - The Scope for Innovation
Extending the performance toolkit
The lever of motivation
Using recognition to raise performance
How companies use non-cash levers of performance 114
Case Report: Southwest Airlines
Case Report: PRC
Overview
Take the Performance-Reward Culture Self-Assessment Test
References
Chapter 6: The Work Environment and Participation 121
What you will learn in this chapter
Introduction: The Emerging Psycho-social Work Environment
Best Company Award Schemes
Great companies and best workplaces
Case Report: Colgate Palmolive Hellas
Changing Work Practices
Trends in work-life balance and flexible working
Trends and Issues in Health and Wellness
Emerging cost and complexity issues
How Companies Tackle Work Practice Issues
Case Report: Melaleuca
Case Report: Google
The Rise of Participative Cultures
How to build participation into the enterprise
The Management of Total Reward in the Workplace
Manager effectiveness checklists
How Companies are Building Workplace Participation 139
Case Report: Starbucks
Case Report: Cendant Car Rental
Financial Participation and Education
Ownership and profit sharing
Education for wealth creation
How Companies are Approaching Financial Participation
Case Report: Hypertherm
Case Report: Resources for Human Development (RHD)
Overview
Take the Work Environment and Participation Self-Assessment Test
References
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Chapter 7: The Situational Context of Reward
What you will learn in this chapter
Introduction: Corporate Situations that Affect Reward
Effects of Globalization on Reward
Factors and challenges in global reward
Off-shoring and compensation models
Factoring in Cultural Issues
Impacts of Mergers and Acquisitions on Reward
Case Report: Verizon
Reward Responses to Competitive Drivers
The basics of productivity and skills
The need to flex total reward to local conditions 162
Case Report: Corning Inc
Reward and the Customer Interface
Reward as a Lever of Sales Force Effectiveness
Innovation and Reward
The case for and against rewarding innovation
Case Report: Whirlpool
Overview
Take the Situational Context Self-Assessment test 170
References
Chapter 8: Issues and Practices in Executive Compensation
What you will learn in this chapter
Introduction: Pressures Shaping Changes in Executive Reward
Pressures for Change and Transparency
Influences on executive pay
Setting differential ratios for executive and staff pay
Focus on executive and organization performance
Cash-based performance targets
The use of strategic performance measurement systems
Governance-related issues and practices
Board Roles in Executive Reward
Developments causing role change at board level
Chairman and non-executive director roles: issues and practices
New Purpose and Work of Remuneration Committees
Insights into compensation committee practice
The Use of Consultants
Overview
Take the Executive Reward Self-Assessment Test
References
Chapter 9: Roles in Reward Strategy and Implementation
What you will learn in this chapter
Introduction: How Reward Roles are Changing
Reward Leader and Team Roles
What reward leadership needs
Moving beyond compensation and benefits
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CONTENTS
The role of HR
Challenges for the Head of Reward
Reward Leader Capabilities in Case Study Organizations
Reward Team Roles and Work
How Case Organizations Define Roles and Responsibilities
Reward team structure
Reward team roles
Reward team success measures
Reward team attributes
Case Report: Cendant - Self-service Tool for Managers
Relationships that Drive Reward
Working with senior managers
HR, reward and line collaboration
Helping managers deliver rewards
Case Report: BT
Overview
Reward function staffing and pay level concerns
Take the Reward Function Self-Assessment Test
References
Chapter 10: The Future of Reward - An Overview
What you will learn in this chapter
The Future is Here - Now
Has reward change happened?
Future Trends Impacting on Reward
Business drivers and reward roles
What change means for the reward function
The opportunities for reward transformation - and the barriers
Future Agendas of Case Study Organizations
AstraZeneca’s education and communication agenda 215
Husky: formalizing recognition
Royal Bank of Scotland’s six-point programme
How We See the Future of Reward
Main Chapter Themes Summarized
Trends Affecting Reward over the Next Three Years 217
Take the Futures Self-Assessment Test
References
Case Studies
AstraZeneca in the UK
BT
HCA-HealthONE LLC
Nationwide Building Society
The Royal Bank of Scotland
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THE TOTAL REWARD REPORT
Exhibit 3.1: One framework used by the OPM.
Exhibit 3.2: The Star Model: Lawler’s Notion of Fit
Exhibit 3.3: How leading consultancies define Total Reward.
BT
Exhibit CS1: Seven key stages in the total reward transformation programme.
HCA- HealthONE LLC
Exhibit CS2: Total reward tools
Exhibit CS3: Total reward sample statement
Nationwide Building Society
Exhibit CS4: The Committed and Engaged Person framework
