IRE367H1 Lecture Notes - Lecture 4: Reward System, Profit Sharing, Independent Contractor
23 Nov 2020
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How an effective compensation strategy has led to a strong culture at westjet. Compensation strategy clearly aligned with their top priority business strategy (people & culture) a culture of ownership: All employees entitled to generous espp that is employer matched. Profit sharing: (organizational level performance pay plan) Different functions that overlign with overall superordinate business strategy. Other hr strategies aligned with culture of ownership goal. Given a voice in important business decisions (pact) Recruiting, t & d all oriented around the culture of ownership . All because management has understood the compensation option and legal constraints facing this firm and industry. Took time to understand the constraints to compensation the industry posed to them. The airline industry is a very competitive and expensive one, tons of regulation needed, follow procedures, inspection, etc. Horizontal fit: other parallel important hr strategies/functions that line up with compensation strategy. Reward strategy: the plan for the mix of rewards (extrinsic and intrinsic)
