Half day open training event held in Toronto, Ontario.

1. September 2014

2. Slide 2
Agenda
 3 Introduction
 4-5 Definitions
 6-7 The reward lifecycle
 8-9 Determining base pay and total earnings
 10-11 End goals of reward
 12-13 Reasons for joining an organization
 14-15 Competitive market and positioning
 16-17 Engaging stakeholders in the process
 18-19 Reasons to offer non-financial rewards
 20-22 Attendance reward programs
 23-24 Pay for performance
 25-26 Linking effective reward to performance
 27-28 Stock options
 29-30 Total reward
 31-32 Linking behaviour and performance
 33-34 Outcomes when adopting reward technology
 35-37 The optimal reward process
 38-39 Implementation of the optimal reward process
 40-44 A typical sales compensation report card
 45-46 Wage mobility for foreign-born workers
 47-48 Reward initiatives to retain top talent
 49-50 Trends around reward
 51 Summary and questions

3. Introduction to Toronto
Training and Human
Resources Inc.
Toronto Training & HR Inc. is a specialist
training and human resources consultancy
headed by Timothy Holden
10 years in banking
15 years in training and human
resources
Freelance practitioner since 2006
The core services provided by Toronto
Training & HR are:
Training event design
Training event delivery
HR support with an emphasis on
reducing costs, saving time plus
improving employee engagement
and morale
Assistance for job seekers
Slide 3

4. DEFINITIONS
Slide 4

5. Definitions
Reward
Base or fixed pay
Total earnings
Slide 5

6. THE REWARD LIFECYCLE
Slide 6

7. The reward lifecycle
Market analysis
Program design
Administration
Analysis and refinement
Slide 7

8. DETERMINING BASE PAY AND TOTAL
EARNINGS
Slide 8

9. Determining base
pay and total
earnings
Pay structures
Pay levels
Pay awards
Pay progression
Variable pay; cash bonuses
and incentives
Slide 9

10. END GOALS OF REWARD
Slide 10

11. Slide 11
End goals of reward
Make the right offers
Keep people engaged and
motivated
Drive the behaviours that
drive value
Retain
Invest wisely

12. REASONS FOR JOINING AN
ORGANIZATION
Slide 12

13. Reasons for joining
an organization
Employees
Employers
Slide 13

14. COMPETITIVE MARKET AND
POSITIONING
Slide 14

15. Slide 15
Competitive market
and positioning
Definitions for your
competitive set
Recommendations for your
competitive positioning
Salary structure

16. ENGAGING STAKEHOLDERS IN THE
PROCESS
Slide 16

17. Engaging
stakeholders in the
process
Executives
Employees
Slide 17

18. REASONS TO OFFER NON-FINANCIAL
REWARDS
Slide 18

19. Reasons to offer
non-financial
rewards
Personal and career
development
Flexible working
Involvement in decision-making
Slide 19
Positive working environment
Performance management
Recognition

20. ATTENDANCE REWARD PROGRAMS
Slide 20

21. Attendance reward
programs 1 of 2
Slide 21

22. Attendance reward
programs 2 of 2
Slide 22

23. PAY FOR PERFORMANCE
Slide 23

24. Pay for performance
Components to include when
creating a valid and legally
defensible plan
Elements to include in the
development of a model for
the distribution of merit pay
increases
Just Noticeable Differences
(JNDs)
Steps for an effective pay-for-performance
system
Slide 24

25. LINKING EXECUTIVE REWARD TO
PERFORMANCE
Slide 25

26. Linking executive
reward to
performance
Current trends
Issues for HR
Research
Rationale
Reaching out
Slide 26

27. STOCK OPTIONS
Slide 27

28. Stock options
Greater CEO risk
Reducing risk
Theoretical perspectives
Slide 28

29. TOTAL REWARD
Slide 29

30. Total reward
Slide 30
Foundational rewards
Career and environmental
rewards
Performance-based rewards

31. LINKING BEHAVIOUR AND
PERFORMANCE
Slide 31

32. Linking behaviour
and performance
Total rewards and work
experience
Employee mindset and
behaviour
Customer behaviour
Financial performance
Slide 32

33. Slide 33
OUTCOMES WHEN ADOPTING REWARD
TECHNOLOGY

34. Outcomes when
adopting reward
technology
Efficiency
Consistency
Visibility
Transparency
Trust
Slide 34

35. THE OPTIMAL REWARD PROCESS
Slide 35

36. Slide 36
The optimal reward
process 1 of 2
Target pay levels
How are targets set?
Award and recognition
programs
Weight on base, weight on
incentives
Controllable, measurable
and strategic
The hierarchy of
performance measures

37. The optimal reward
process 2 of 2
Typical sales incentive
measures
Having a threshold or no
threshold
Caps
Communication
Slide 37

38. IMPLEMENTATION OF THE OPTIMAL
REWARD PROCESS
Slide 38

39. Implementation of
the optimal reward
process
Slide 39
Develop implementation plan
Confirm systems capabilities
Develop transition approach
Develop objective setting
approach and set individual
objectives
Develop communication plan
materials
Develop and conduct training
Measure understanding,
acceptance and success

40. A TYPICAL SALES COMPENSATION
REPORT CARD
Slide 40

41. Slide 41
A typical sales
compensation report
card 1 of 4
Sales characteristics
Individual versus team
influence on outcome of the
sale
Percentage of current annual
revenue that would repeat
without the existence of this
job role
Direct contact with the
customer (in-person or by
phone)

42. A typical sales
compensation report
card 2 of 4
Slide 42
Sales characteristics (cont.)
Influence of the company or
the job incumbent on the sale
Role in the customer’s buying
process

43. A typical sales
compensation report
card 3 of 4
Slide 43
Alignment of compensation
plan to job roles and sales
strategy
Motivation and recognition for
top performance
Market competitiveness
Pay mix
Measurement clarity
Teaming and cross-selling

44. Slide 44
A typical sales
compensation report
card 4 of 4
Mechanics and payment
cycles
Compensation cost of sales
Goal equity and achievability
Plan management and
administration

45. Slide 45
WAGE MOBILITY FOR FOREIGN-BORN
WORKERS

46. Slide 46
Wage mobility for
foreign-born workers
Wage distribution of natives
and immigrants
Wage mobility by immigration
status
Wage mobility by years since
migration
Wage mobility by country of
origin
Wage mobility by education

47. Slide 47
REWARD INITIATIVES TO RETAIN TOP
TALENT

48. Slide 48
Reward initiatives to
reward top talent
Spot cash awards
Individual incentives for non-management
Broad-based equity
Team/small group incentives
Cash profit sharing
Gainsharing plans

49. TRENDS AROUND REWARD
Slide 49

50. Slide 50
Trends around reward
Base and variable pay policies
Employee share schemes and
long-term incentive plans
Employee benefits
Pensions

51. SUMMARY AND QUESTIONS
Slide 51