HRM200 Lecture Notes - Lecture 7: Total Rewards, Equal Pay For Equal Work, Job Evaluation

• School: University of Waterloo
• Department: Human Resources Management
• Course: HRM200
• Professor: Dean Bulloch William Peckham

Document Summary

Module 7: strategic pay plans and pay-for-performance and financial incentives. A total rewards approach includes both compensation and other non-monetary rewards. Employee compensation includes all forms of pay going to employees arising from their employment. I(cid:374)direct fi(cid:374)a(cid:374)cial pay(cid:373)e(cid:374)ts (cid:894)(cid:449)ages salaries, i(cid:374)ce(cid:374)ti(cid:448)es etc (cid:895) a(cid:374)d i(cid:374)direct financial payments (employer-paid insurance and vacations). A total rewards approach recognizes how the business environment has changed (e. g. , more virtual, knowledge-based, and service- based). Employers must consider individual reward components as part of the whole to determine the best mix of rewards that are aligned with business strategy and provide employee value, all within the cost constraints for the organization. The purpose of rewards is to attract, retain, motivate, and engage employees. The five components of total rewards are: compensation, benefits, work-life programs, performance, recognition. Organizations must abide by the legal standards outlined in provincial and federal laws such as the employment standards act, etc.