Más contenido relacionado La actualidad más candente (12) Similar a Compensation & Benefits Management: Xavier Baeten (20) Más de Vlerick Business School (20) Compensation & Benefits Management: Xavier Baeten2. “The changing face of reward”
"Plato believed that no-one in a community should earn
more than five times the pay of the lowest paid worker."
“incentives will never be perfectly aligned
with value-creation.”
“One-quarter of the highest-potential people in your company
Intend to jump ship within the year”
“The Silver Tsunami”
“work is becoming the new face of retirement in the
21st century”
“SRIHRM” “Age management” “FFWP”
3. Trends & challenges
1. Flexible rewards: pay-for-performance
2. Family-friendly workplace practices
3. Flexible rewards: choice
4. Health benefits
5. Corporate Citizenship
6. Retirement and pension plans
7. Employee value proposition
© Vlerick Leuven Gent Management School
4. 1. Flexible rewards: pay-for-performance
Less fixed, more variable
39% plan to increase the proportion of variable pay
More differentiation
Targets & measures
Collective bonus
Bonus deferral
Some tips:
Do not over-incentivise
5 – 10 – 15
Target setting
Go beyond financial measures
Flexibility& discretion
© Vlerick Leuven Gent Management School
5. 2. Family-Friendly Workplace Practices
Holidays:
number &
Total hours regulation
worked per
week
Childcare
subsidy Working
from home
Childcare
flexibility
Job Job
switching sharing
5| © Vlerick Leuven Gent Management School
6. 2. Family-friendly workplace practices
Bloom, N., Kretschmer, T., & Van Reenen, J. (2011):
Sample:
50-10.000 employees
Countries: Germany, France, UK, US
Findings:
No relationship with firm performance
No relationship with % female employees overall
Positive relationship with female managers
Positive relationship with ‘good management practices’
Operations
Monitoring
Targets
Incentives
6| © Vlerick Leuven Gent Management School
7. 3. Flexible rewards: choice
Low flexibility High flexibility
Low cost High cost
Salary Core Plus
Modular
reduction • Core: basic Mix and
options
coverage
• Premium Match
• Choice: • Plus: flexible
conversion
different credits to • Flexible credits
• Flexible
combinations purchase
spending
of benefits additional
account
coverage
Barringer & Milkovich (1998)
7| © Vlerick Leuven Gent Management School
8. 3. Flexible rewards: choice
Do not provide too much choice – most important:
Time (holidays, leave)
Mobility (car, public transport)
Pension contribution
Main barriers:
Tax treatment
Administrative burden
Main effects:
Employer reputation
Improves knowledge of benefits
8| © Vlerick Leuven Gent Management School
9. 3. Flexible rewards: choice
What are the most popular ingredients of a cafeteria
plan?
Money for…
Extra holidays
Bigger car
Holidays for…
Sabbatical or early retirement
Extra cash
Extra benefits
9| © Vlerick Leuven Gent Management School
10. 4. Health benefits
Wellness programs
Social, mental and physical health
Food, fitness, stop smoking, stress, …
Health risk appraisal
Growing focus in the USA
74% use incentives (e.g., small cash awards, t-
shirts, memberships in health clubs), up from
50% in 2008
J & J: return of $2.71 for $1.00 spent
Positive impact on retention
Clear signal about firm culture: culture of health
10 | © Vlerick Leuven Gent Management School
11. 5. Corporate Citizenship
CSR – PR = HR
Research results:
More than 90% of MBAs are willing to forgo financial benefits
in order to work for an organisation with a better reputation
for CSR and ethics (Stanford)
72% deciding between 2 jobs choose to work for the
company that also supports charitable causes (Deloitte)
Only 15% say their employer has an employee sustainability
engagement policy (Brighter Planet)
11 | © Vlerick Leuven Gent Management School
15. 6. Retirement & pension plans
“In Europe, fewer older individuals work because public policies
encourage them to step down and create job openings for younger
employees
Pension plans:
Impact of economic crisis?
People do not think enough about retirement
‘Older’ workers – some research results:
Fewer sich days
Less turnover
Better interpersonal skills
More engaged
However… 13% actively recruit older workers
15 | © Vlerick Leuven Gent Management School
16. 6. Retirement and pension plans
Impact on Reward Management
End-of-career is not an “on-off” switch - flexible retirement
(4th pillar)
Impact on job content
Need for flexible rewards:
Benefits: pension plan, mobility, holidays
Bonus plans?
Need for changes in social security
and tax system
16 | © Vlerick Leuven Gent Management School
17. 6. Retirement & pension plans
17 | © Vlerick Leuven Gent Management School
18. 7. Reward Proposition
Important Less important
Financial rewards: Financial rewards:
Pay structure Bonus
How raises are determined Employee benefits
Pay structure Non-financial rewards:
Information Management approachability
Non-financial rewards:
Responsibilities
Colleagues
Security
Career opportunities
18 | © Vlerick Leuven Gent Management School
20. What are companies working on?
Projects in reward management
20 | © Vlerick Leuven Gent Management School
21. What are companies working on?
Projects in reward management
Benchmarking
Bonus design:
Simplification
Collective bonus
Bonus deferral
Pension plans: from defined benefits to defined
contribution
21 | © Vlerick Leuven Gent Management School
22. “There is now more attention being paid to the
balance between financial and non-financial
performance; it has been too financially oriented”
“The trend will go to ‘one size fits me’”
“Distilling the message and getting line
managers to really buy it … is critical”