Question

You work as the sole HR professional in a relatively small organization. Recently, the company conducted its first employee survey, and the results indicated that employees don't understand how the company sets its pay rates -- in other words, they don't know why they are paid what the are paid. The company president, who happened to recently read an article during a cross-country flight about "total rewards philosophy," has asked you to draft one. He wants it "fast, good, and cheap." You know that no one source of information alone will give you everything that you need, but you've got to start somewhere. Which of the following do you think would be of greatest initial value to you as you put together this document?

1. A sample "total rewards philosophy" statement from a reputable HR-related website.
2. A "total rewards philosophy" statement from a local company that is well-known for being an employer of choice.
3. Your organization's mission, vision, and values statement, along with your organization's employee handbook.
4. A brochure from a consulting firm that specializes in communicating with employees about compensation-related issues.

Please answer the above question and post the information you gathered from your assignment in this thread and comment to others' about the content provided. What did you find interesting, shocking, or similar to your experience? How does your employer's Compensation Philosophy, regardless if it has been communicated, fit in with the summaries provided?

Discuss the pros/cons of being under-the-market, at-market, and above-the-market.

Answer 1

Personally, I would use the 4th option.

A brochure from a consulting firm that specializes in communicating with employees about compensation - related issues.

I chose that option because , many people i know doesn't much understand how the compensation works and all the things that are mentioned in their payslip. I know few people who told me their companies have followed the principle and the results are surprisingly better.

Because , in the short time that was given , it is much better to chose an option that is both good and promising. As the firms already have experience on things like this it is much preferred. Once you give the firm the details about your employers compensation philosophy, they will be ready to handout the brochure and you as an HR can have a Q&A session with your employees to make it clear to all of them .

1. Under-the-market

pro: savings will be significantly high.

con: might not attract lot of employees who got talent.

2. At-the-market

pro: savings will be optimal and employees also get satisfied.

con: even in this case some of the employees might not be satisfied.

3.Above-the-market

pro: company will be employees favourite and attracts a lot of people who are good at what they do.

con: as compensation is high the returns might decrease .

In the end , I want to conclude by saying , "As the organisation you work for is relatively small , I prefer being at-the-market."

Hope this helps.