Total Rewards Evolution Matrix
DIAGNOSE | DESIGN | EXECUTE | ADAPT
This resource is designed to help you get the most from your decision‐making processes,design projects,management approvals, administration practices and compensation budget.Performensation’s actionable process for continuous improvement of your total rewards programs is effective for companies of any size,industry and location.The process can be applied to comprehensive total reward projects or individual plan improvement or design. Our diagnostic approach ensures that the human and mechanical aspects of your programs are fully considered.Market data is important, but leading companies distinguish themselves by creating their own route to success.This process provides both a foundation and path to reaching your total reward goals.It is important to clarify objectives,issues and opportunities before proceeding with any project.Potential solutions are then communicated with a strong foundation that allows more confident executive approval.Effective solutions are designed to support and drive company strategy and culture.Careful crafting of details allows plan features to support specific purposes while remaining understandable.Avoid surprises by modeling probable,and not so probable,performance paths.Collaborate with Legal and Finance to ensure no loss of intent.Execution includes initial roll-out,plus ongoing management and communication of each solution.Incorporating the right people,tools and leadership strategy is essential to success.Identified metrics and objectives must be tracked,measured,evaluated,analyzed and communicated at least as frequently as each program’s regular cycle.Every issue may not require an adjustment,but critical adjustments must be made quickly and confidently.
DIAGNOSE
Qualification
Employee interviews, Stakeholder meetings, Cultural priorities, Link to pay philosophy, Impact of non-compensatory issues, 12 Pillars analysis
Quantification
Review market levels, Review reward practices, Measure program(s) to best case and objectives, Estimate cost of rewards and administrative burden, Comparison to legacy programs
Report
Human factors analysis, Analysis of mechanical factors, Illustrative approach to reward service delivery, SWOT Communication: Strengths, Weaknesses, Opportunities and Threats
Decisions
Determine priorities, Get agreement on Proof of Concept, Get initial approval on budget, Identify responsibilities for design and execution
Project Plan
Assign responsibility, accountability and milestones for everything, Identify resources, Account for other required deliverables in the same time frame, whether or not related to this solution
DESIGN
Objectives
Define solution impact to: Attraction,motivation,engagement and retention, Decisions and behaviors, Financial metrics,
Operational metrics, Compensation budget
Instruments
Fixed or variable pay elements, Short-Term,Mid-Term or Long-Term Incentives, Cash,equity or other,
Relativity of risk to leverage International considerations
Features
Eligibility, Vesting, Impact of individual,group or company performance, Impact of change in control, Impact of termination,
Industry standard/unique to the company
Modeling
At least four models:Best case,worst case,formulaic case and expected case, Utilize words,numbers and visuals,
Results must be in formats familiar to stakeholders
Finalization
Set expectations, Obtain approval on expected case, Ensure understanding of best case and worst case,
Communicate requirements to achieve expectations
EXECUTE
Implementation
Clarify rollout goals, Train executives and managers, Build awareness and understanding, Enable success, Engage in growth
Tools
Administration and record-keeping, Data and analytics, Finance and accounting, Communication, Employee access and transactions
Automation
System integration, Data feeds, Tracking of metrics and goals, Alerts and warnings, Feedback and success measurement
Communication
Visual,auditory,reading/writing and kinesthetic, Initial rollout, Ongoing updates, Progress and achievement, Stakeholders,
management,employees
Administration
Define processes and procedures, Ensure compliance with rules and regulations, Ongoing and transactional,
Internal,outsourced,co-sourced
ADAPT
Reporting
Market Intelligence, Pay for Performance linkage, Dashboards, Reconciliations, Progress to objectives, Unexpected outcomes
Analysis
Correlation versus causation, Stakeholder perception versus participant perception, Return on Investment, Budget versus actual cost
Modifications
Mid-term course changes to adjust to changing conditions, Changes to plan features, Changes to pay levels, Adjustments to legacy awards due to unexpected results
Decisions
Determine priorities, Communicate recommendations, Get approval on recommendations and budget, Identify responsibilities for design and execution
Communication
Clearly communicate successes and opportunities for improvement, Explain modifications and changes to future objectives,
Incorporate all changes into the processes built in the Execution phase