MHR 523 Chapter Notes - Chapter 11: Canada Labour Code, Eval, Matpat

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16 Aug 2016
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Strategic Pay Plans
THE STRATEGIC IMPORTANCE OF TOTAL EMPLOYMENT REWARDS
total employment rewards = an integrated package of all rewards (monetary and non-monetary, intrinsic
and extrinsic) gained by employees arising from employment
o what employees value in relationship
compensation (extrinsic), benefits (extrinsic), non-monetary rewards (intrinsic)
Consider indiv. reward components as part of an integrated whole to determine the best mix aligned w/
bus. strategy
o alignment and employee value
The 5 Components of Total Rewards
compensation: direct financial payments (wages, salaries, incentives, commission, onuses)
benefits: indirect payments in form of financial benefits (employer-paid insurance, vacay), semployee
services
work-life programs: programs that help employees do their job effectively (flex. sched, telecommute,
childcare)
performance and recognition: pay-for-performance and recognition programs
development and career opp.: planning for advancement or change in responsibilities to best suit indiv.
talent/skill/desire (tuition assist., pre. development, coaching etc.)
Impact of Rewards
purpose: attract, retain, motivate, engage employees
engagement positive emotional connection to the employer and clear understanding strategic
significance of the job discretionary effort by employee
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attract: competitive base pay, retain: career opp., engage: man. interest well-being
BASIC CONSIDERATION IN DETERMINING PAY
Legal Considerations in Compensation
10 prov., 3 terr., 1 federal
Employment/Labour Standards Act (Canada Labour Code)
o min. std. regarding pay (min. wage, max. hrs. OT, paid vacay, holidays, termination pay, records)
Pay Equity Acts
o equal pay for equal (or comparable) value performed by men and women
o employer identify fe/male dominated jobs, use gender-neutral job eval. system, based on specific
compensable factors
o pay for female-dominated jobs that are equivalent in value to male-dom. jobs must increase pay
Human Right Acts
o discrimination (age, sex, colour, race, religion etc.)
Canada/Quebec Pension Plan
o all employees + employers contribute to C/QPP through employee working life
o pension benefits based on employee’s avg. earning paid during retirement
Other Legislation Affecting Compensation
o 14 workers’ compensation laws
o provide prompt, sure, reasonable income to victims of work-related accidents
o Employment Insurance Act protect Cdn workers from total economic destitution from
employment termination out of ctrl
employee(rs) contrinute
up to 45 wks pay, mat/pat leave, compassionate care leave
Union Influences on Compensation Decision
collective bargaining: wage rate, time off w/ pay, income security, COLAs, pension
Union Attitudes toward Compensation Decisions
o union leaders fear evaluate worth of job malpractice, compensable factors manipulated
o work together, involvement
Compensation Policies
guidelines of wages and benefits
factors: leader or follower w/ pay, bus. strategy, cost of diff. types compensation
policies: basis for salary increase, pro/demotion, OT, probabtionary, mil. service/jury/holidays
Equity and Its Impact on Pay Rates
external equity = employees perceive their pay as fair given pay rates in other organizations
internal equity = employees perceive their pay as fair given rates of others in org.
ESTABLISHING PAY RATES
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