Pay People Right Zingheim

1
Pay People RightZingheim Shuster

• Chapter 1
• Total Rewards and the Six Principles

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Reward Principles

• Create a positive and natural rewards experience
• Align rewards with business goals to create a
  win-win partnership
• Extend peoples line of sight
• Integrate rewards
• Reward individual ongoing value with base pay
• Reward results with variable pay

3
Create a Positive and Natural Reward Experience

• Involvement in the process
• Communicate and educate
• Changes must be made as positive as possible
  within the constraints of the business message
• Examples, Monsanto, GE, Microsoft, Intel, others

4
Align Rewards with Business Goals to Create a
Win-Win Partnership

• People as stakeholders
• Alignment creates value for stakeholders
• Rewards emphasize performance at the point where
  customers measure value
• Company must feel its getting value, and people
  must believe company expectations are reasonable

5
Extend Peoples Line of Sight

• Company financial performance and customer
  satisfaction may appear remote
• Connect the person to these element through
  appropriate pay systems
• People become dislodged when their goals are only
  a short distance away, and dont appear to relate

6
Integrate Rewards

• Use each reward tool for what it does best
• Many facets
• Create a combination that
• Supports the role the company wants its people to
  play
• Defines how the workforce shares the results of
  the organizations success

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Reward Individual Ongoing Value with Base Pay

• Three dimensions that determine the value of an
  individual to the organization
• The skills and competencies that the company
  needs and the individual utilizes to generate
  results
• The individuals consistent performance over
  time, whether individual results or contribution
  to team results
• The individuals value relative to the labor
  market

8
Reward Results with Variable Pay

• Companies need results
• People make those results happen
• Rewards based on results
• Variable pay is the primary (paramount) method
  for linking the workforce to customer goals,
  extending line of sight, and sharing in the
  success of the enterprise (Authors perspective)

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Components of Total Rewards

• Individual Growth
• Compelling Future
• Total Pay
• Positive Workplace

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Individual Growth

• Investment in People
• Development and Training
• Performance Management
• Career Enhancement

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Compelling Future

• Vision and Values
• Company growth and success
• Company image and reputation
• Stakeholdership
• Win-win over time

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Total Pay

• Base pay
• Variable pay, including stock
• Benefits, aka indirect pay
• Recognition and celebration

13
Positive Workplace

• People focus
• Leadership
• Colleagues
• Work itself
• Involvement
• Trust and commitment
• Open communications

14
Total Reward Strategy

• Impact on Total Reward Strategy of
• Business Strategy
• Organization Design
• Human Resource Strategy
• Workforce
• Company Culture