Equity is fairness and impartiality toward all concerned, based on the principles of evenhanded dealing. Equity implies giving as much advantage, consideration, or latitude to one party as it is given to another. Along with the economy, effectiveness, and efficiency,…
Contribution-Oriented These companies are more performance driven. They put greater emphasis on job performance and the contributions of individual employees. They focus on results but not so much on how the results are achieved. A company that instructs its sales…
Entitlement-Oriented These companies promote a caring, protective feeling and want employees to feel they are part of the family. Sometimes called a fairness orientation, or emphasis on people, these companies place a high value on how their decisions affect the…
Organizational Culture Regardless of the other factors, a compensation system must fit the organization’s culture. By “organizational culture,” we mean a system of shared assumptions, values, and beliefs that governs how people behave in organizations. Every organization has a distinct…
All organizations need to have their compensation and benefits systems support their organization’s mission and strategy. Although the degree of sophistication may vary, a good total rewards strategy should hold to some basic principles. That is, in the face of…
Here is SHRM’s definition: “Total Rewards refers to the design and implementation of compensation systems and benefit packages, which employers use to attract and retain employees.” Total rewards Includes six elements (compensation, benefits, work-life effectiveness, recognition, performance management, and talent…