A fundamental component of reward management and HR is a grade and basic salary structure, and these are often taken for granted. Rather than make changes, HR and reward professionals try to fit the ever-changing needs of their employees into a system that may not have been reviewed for many years. The course will touch on all areas of reward management, including grade structures, salary structures and pay scales, allowances, pay reviews, bonus and incentive schemes, benefits, and non-financial reward opportunities such as recognition and retention schemes.
This course is designed for everyone who requires an in-depth knowledge of working with and managing salary structures and compensation and reward issues, including all professionals who work in HR at all career levels.
To enhance the participants’ knowledge, skills, and Abilities necessary to understand the key areas in the overall compensation and benefits package that enable employers to adopt best-practices and compete more effectively in the war for talent whilst achieving cost-effectiveness for the employer.
By the end of this course, participant will be able to:
- Understand the golden triangle of reward management (jobs, people and performance, and pay markets)
- Define the pay policy for employee compensation
- Match the pay structures to organisational objectives
- Understand the role of job evaluation
- Develop grading and salary structures
- Understand the role of market salary surveys
- Design salary PayScale’s and compensation structures
- Implement new grading and salary structures
- Manage performance
- Understand goal of linking pay to performance
- Understand the role of variable pay schemes
- Understand the role of recognition programs
- Understand the role of retention programs.
- Introduction
- The golden triangle of reward management (jobs, people and performance, and pay markets)
- Why is compensation and reward management important?
- The role of grading and salary structures in compensation and reward
- How grading and salary structures have developed in the Middle East and GCC
- Definition of Pay Policy for Employee Compensation
- Knowing the key pay components and defining the appropriate pay market
- Selecting the right pay market position and understanding sector pay
- Determining a pay policy benchmark and reward strategy
- Linking the pay policy and reward strategy to the HR strategy and business goals
- Matching Pay Structures to Organisational Objectives
- Why Organisations are considering new pay structures
- How to assess if pay structure is meeting business objectives
- Managing the balance between employee expectations and ability-to-pay
- Job Evaluation
- The key job evaluation approaches and methodologies
- The internal role to develop the grading structure
- The external role to enable pay market benchmarking
- Development of Grading and Salary Structures
- Definition and types of basic pay structures
- Selecting a grade and salary structure to meet needs
- The challenges of grading and salary structures for multi-national workforces
- Benchmarking and designing a grading and salary structure
- he pros and cons of broad banding in different organisational cultures
- Methods of salary progression, merit-pay and pay-for-performance
- Changing existing grading and salary structures and transition methods
- Market Salary Surveys
- Understanding different types of market pay surveys
- Knowing how to interpret and utilize external pay market survey data
- Using survey data from consultants or gathering survey data
- Using salary surveys and benchmarking tools in salary structure design
- Salary PayScale’s and Compensation Structures
- Establishing the midpoint of the pay-range for each grade
- Determining the minimum and maximum salaries for pay-ranges
- The various calculation formulae for determining minimum-midpoint-maximum
- The single-step approach (80%-120%) and the double-step approach (70%-130%)
- Defining and using compa-ratios and managing pay-ranges and position-in-range
- Implementation of New Grading and Salary Structures
- The role of management in implementation, and the role of the HR and reward specialist
- Guidance on how to make changes that ensure successful implementation
- Communicating the new structures to employees
- Managing an annual pay review process and managing progression through a pay range
- Managing compa-ratios and coping with employees who reach the maximum of their PayScale
- Performance Management and the Goal of Linking Pay to Performance
- Establishing targets and measures
- Measuring and tracking performance (of the employee and the company)
- Building a performance monitoring system linked to business performance
- Reviewing and rating individual employee performance
- Performance Management and Linking Pay with Performance Via Merit-Pay
- What motivates an employee?
- Rewarding performance within basic salary increases and merit pay reviews
- Linking merit-pay to individual performance
- Rainbow curves to manage compensation and pay-for-performance and using a merit-matrix
- Conducting and managing the annual pay review process
- Variable Pay Schemes
- What motivates an employee?
- Types of variables pay schemes and current best practice in variable pay management
- How incentive schemes can be used to help achieve business goals
- Schemes that have proved successful, particularly in the Middle East
- Current trends on variable pay and incentives
- Importance of build-up and then pay-out
- Gearing effects and bonus multipliers
- Individual plans, team plans, departmental plans
- Prevalence of various types of incentive plans
- Recognition Programs
- Identifying the most appropriate schemes for company
- Understanding the popularity of incentive schemes
- Some of the challenges of developing incentive schemes in the Middle East
- The case for recognition
- Types of recognition plans
- Retention Programs
- What is a retention program in both a risk and non-risk context?
- Why have retention plans linked to talent management and key employee plans?
- Identifying the most appropriate retention schemes for the company
- Types of retention plans and the typical costs of retention scheme
