Creating an Effective Total Reward Strategy: Holistic Approach
Better Supports Business Success
by Steven E. Gross and Helen M. Friedman
Today, organizations acknowledge the important role reward programs play in achieving business goals. Employers are also realizing that they can't merely mimic the reward practices of other organizations: A reward strategy must be deliberately created to support an organization's unique human capital strategy. The authors describe human capital strategy, define rewards and discuss the components of an effective strategic total reward package. They then describe a seven-step process employers can use for developing a successful reward strategy that takes into account the human capital implications of their organization's business context and strategy.
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Rewarding and Retaining the Best: Compensation Strategies for Top Performers
by John A. Menefee and Ryan O. Murphy
The demand for top performing employees is a constant and growing need. Their retention and continued success is critical for sustaining and growing a company's bottom line. Using a unique data set of responses from a broad range of employer-identified top performers, this article discusses the type and mix of rewards that help minimize a company's turnover exposure and maximize its job acceptance rates.
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Rewarding Excellence Through Variable Pay
by Jessica Smilko and Kathy Van Neck
Recognizing the limitations of base pay, employers are embracing variable compensation as a means of aligning employee behavior with organizational goals. This article reports results from Hewitt Associates' 2003 Variable Compensation Measurement (VCMTM) Report, which summarizes variable compensation practices at 111 companies. Specifically, the authors report spending on variable compensation, discuss the prevalence of different types of variable compensation plans and highlight issues employers should address when implementing a variable compensation plan.
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The Human Side of Customer Relationship Management
by Todd McGovern and Joseph Panaro
The success of customer relationship management strategies (CRM) depends on support from the human resource systems that support and shape behavior. The authors of this article have developed a set of CRM "best practices," drawn from a cross section of industries, that will ensure CRM strategy hits its targets. Included among these best practices is a commitment to a genuine change management initiative to ensure the people systems align with CRM
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Employee Stock Options-New Valuation Responsibilities and Planning Opportunities
by Michael Savage and Terry Adamson
On March 31, 2004 , the Financial Accounting Standards Board (FASB) issued a highly anticipated exposure draft regarding the accounting for and the valuation of employee stock options (ESOs). After the commentary period and the issuance of a final document, expected during the third quarter of 2004, it will establish the single standard to achieve "fair value" accounting. The exposure draft has reemphasized the importance of determining the most accurate estimation of compensation expense and certainly will have wide-reaching implications on benefits and compensation design.
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New Outsourcing Opportunitiesin Compensation Management
by Mitchell G. Barnes and Kimberly L. Seals
Although broad compensation management was rarely outsourced in the past, times are changing. After defining compensation outsourcing, the authors of this article describe the primary components of an operating model that is effective and adaptable for many organizations' specific needs. They then discuss how organizations are expanding their view of outsourcing, leveraging their internal and external resources more effectively and learning important lessons about compensation outsourcing along the way.
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Study Results: Employer-Based Coverage of Genetic Counseling Services
by Avis Gibons, CEBS
Because advances in genetic medicine are likely to affect the cost and delivery of employer-sponsored health care, plan managers require a basic understanding of related services. By describing and analyzing a survey of health plan managers, the author shows where they may need more information about genetic services in order to negotiate coverage and make informed purchasing decisions. Given these current information gaps, genetic counselors may be helpful to health plan managers by providing information and quality assurance about genetic medicine as it continues to integrate itself into medical practice and as plan managers seek cost-containment approaches in the face of rising health care costs
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