HRMN395 University of Maryland University Total Rewards Metrics Presentation This assignment provides you an opportunity to demonstrate mastery of course o

HRMN395 University of Maryland University Total Rewards Metrics Presentation This assignment provides you an opportunity to demonstrate mastery of course outcomes:

3. select metrics that are aligned with the organization’s objectives in order to ensure organizational success

4. formulate a plan for implementing a total rewards program in order to ensure success of the program

In this assignment, you will write and present a MS PowerPoint Presentation that describes and justifies the total rewards metrics that you propose. The course material provides examples of metrics and how they are used to evaluate the effectiveness of the Total Rewards Program. These metrics will used as a portion of the final paper due Week 8 (the final assessment for the class). Feedback from the instructor may require some revision to the chosen metrics prior to use in the final paper. At least three scholarly references from the course materials are to be presented in APA format, as well as respective in-text citations and relevant Web site documentation if information about the organization is taken from a Web site.

You will define the term metrics, explain how metrics are used to evaluate the success of the total rewards program, identify, describe, and provide examples of at least three metrics and share how you will collect the data for each metric and how you will set the benchmark or goal target for each that you would use to compute and analyze the Total Rewards Program in the organization you are studying in the course. Justification for the metrics linked to the organizational objectives, requisite competencies, and challenges should also be included.

At the least, the presentation will include the following segments:

1. Title Slide

2. Introduction and Purpose of the Presentation

3. Academic Definition of the Term Metric

4. Explanation of the Use of Metrics in Evaluating the Success of the Total Rewards Program

5. Three Metrics (Identify, Describe and Provide Examples AND share how you will collect the data for each metric AND how you will set the benchmark or goal target for each).

6. Justification of the Metrics Selected (State how the metrics will directly evaluate the total rewards program)

7. Conclusions

8. Reference Page (at least three scholarly sources from course materials)

Attached are weeks 3-5 course material, the sample powerpoint from the class.

Lastly is the first part of this assignment which was submitted to the course. Please use the Project 1 as a reference for this project.

APA Format UMUC HRMN 395 Commentary Module 3: Core Elements of Non-monetary Rewards and Work
Experience. (n.d.). Retrieved from:
https://learn.umuc.edu/d2l/le/content/422096/viewContent/15914120/View
Module 3: Core Elements of Non-monetary
Rewards and Work Experience
Topics
Topic
Topic
Topic
Topic
Topic
Topic
1: What are Non-monetary Rewards?
2: Key Elements of Work Experience
3: Governmental Compliance Issues
4: Understanding Demographic and Psychographic Differences
5: Role of Non-monetary Rewards and Work Experience in Total Rewards Design
6: Conclusions
Topic 1: What are Non-monetary Rewards?
A Society for Human Resource Management study (SHRM, 2005) found that both employers
and HR professionals see benefits or non-monetary rewards as a driving factor for job
satisfaction. In this module, non-monetary rewards are defined as the set of rewards known
broadly as benefits. The array of benefits that supplement monetary rewards are evolving
quickly, as the competition for employees increases. While there is a wide range of nonmonetary rewards offered, most center around those that protect against the cost of illness or
health emergencies, provide income protection in the case of disability, and and provide general
well being for the employees and their families. The more typical non-monetary rewards offered
today are shown in the center column in table 3.1 below.
Table 3.1
Three Elements of the Total Rewards Model
Monetary Rewards
Non-monetary Rewards
Work Experience
Base Pay
Income Protection
Benefits
Values of the Organization
Variable Pay
Medical Insurance
Community (Individual and
Organizational)
Merit and Cost of Living
Increases
Vision and Dental
Recognition
Retirement Savings
Disability
Training and Development
Performance Feedback
Life Insurance
Promotions
Deferred Compensation
Paid Time Off
Sense of Accomplishment
Day Care
Employee Assistance
Program
Health Related Programs
Tuition Assistance
Companies listed on Fortune magazine’s list of “100 Best Companies to Work for in America”
seem to recognize the importance of offering a wide assortment of benefits. They offer the
assortment in order to meet the needs of the employees and address many of the needs in
Maslow’s hierarchy (Maslow, 1954).The companies appear to use a total rewards approach to
compensation to attract, retain, and motivate their employees. In addition to what has become
rather standard as a set of rewards including medical, dental and vision insurance; paid time off;
and ample room for career growth, some mix of the following benefits is often present: education
reimbursement, employee training, on-site child care services, financial counseling, and
retirement benefits (Bates, 2003).
But it is important to remember, just as with consumer purchasing decisions, that what is valued
by one employee is not necessarily valued by all. Therefore employers must research what the
requisite employees in their organization desire. One way in which information about
preferences is gathered is through surveys or interviews, and more than one method of gathering
data about the important decisions of rewards is better. Information internal to the organization
and outside the organization is recommended. Table 3.2 summarizes a report from a survey
conducted by Aon (2002) demonstrating the average range of preferences when individ uals
taking the survey were asked to rank the benefits from most preferred to least preferred, if given
a choice. In this survey, the data revealed that the benefit most often ranking the highest was
medical insurance and the lowest was wellness programs. As you read the list of preferences,
think about how you would rank your own preferences. Surveys similar to the A on survey can
provide information to organizations that can be compared against internal or other external
research.
Table 3.2
Employee Benefit Preferences
Benefit preference, in order of most desired
1. medical insurance
2. paid vacation and holidays
3. employer-paid pension
4.
5.
6.
7.
8.
9.
retirement savings plan
prescription-drug card
ability to choose benefits to meet needs
sick leave and short-term disability
long-term disability insurance
preventative/wellness coverage
(Source: Aon Survey, Benefit Preferences, 2002)
When making the decision to offer a benefit, organizations must be careful that the benefit can
be continued after it is implemented. Once offered, there can be negative repercussions if it has
to be taken away. Employee scan quickly grow accustomed to having benefits and can develop a
sense of entitlement to them. In one of the offices of Hewlett-Packard, for example, employees
receive free fresh fruit throughout the day, and have now come to expect it, thereby making it
difficult for the company to stop doing it. Another large company decided, as a cost-cutting
measure, to eliminate the annual free holiday turkey for its thousands of employees. The news
created such wide spread negative reaction that the decision was quickly reversed.
There are a few benefits for which there is entitlement by law. Many employees mistakenly
believe that their major benefits are mandatory, or required by law to be provided. In fact,
however, few benefits are required by law. While the benefits listed in Table 3.3 (the major
federally mandated benefits) are certainly more than those offered to employees prior to World
War II, they represent only a small portion of the benefits most organizations offer today.
Table 3.3
Federally Mandated Benefits
•
•
•
•
•
•
Workers Compensation
Social Security
Unemployment Insurance
Time Off for Family or Medical Care (FMLA)
Continuation of Medical Insurance Coverage (COBRA)
Health Insurance
Compare the list of government-mandated benefits to the list of typical optional benefits in table
3.4 below. With this list it is easy to see how the cost of benefits can be as much as 40 percent of
the overall payroll cost.
Table 3.4
Typical Optional Benefits
•
•
•
•
paid time off during working hours: vacation, sick leave, personal days, bereavement,
jury duty
child care facilities or services
domestic partner benefits
legal insurance
•
•
•
•
•
•
•
•
tuition assistance
flexible spending accounts
legal services and legal insurance
employee assistance programs
long-term care insurance
free or subsidized parking
free or subsidized public transportation
cafeteria plans for benefits
In addition, there are benefits that are offered that seem to be designed for specific employees’
interests and enjoyment. The list in table 3.5 provides some examples offered by various
organizations.
Table 3.5
Not Widespread but Increasingly Offered Non-monetary Rewards
•
•
•
•
•
•
•
•
•
•
•
•
•
•
gyms or exercise facilities
pet insurance
elder care
stock purchase plan
career coaches
subsidized cafeterias or free food and beverages
financial counseling
paid days off for volunteering
banking and post office on premises
game rooms (with electronic games, pool, table tennis)
meditation or prayer rooms
lactation rooms
concierge services
other personal services (on-site dry cleaners, car maintenance)
At Google.com, the company that was No. 1 on the list of Fortune magazine’s top 100
companies to work for in 2007 (Fortune, 2008), even more non-monetary rewards are offered in
addition to most of those listed in tables 3.3, 3.4, and 3.5. The benefits are offered in an attempt
to take away as many of the distractions as possible from the employee and also to make
employees turn away recruitment calls. For example, if an employee has a baby, she receives
$500 toward take-out food to help provide extra time for the work that a new child brings. There
is a laundry facility in which employees can wash their clothes for free, on-site doctors for free
checkups, and a bookmobile. To complement these benefits that help to eliminate any
distractions, there are additional benefits that support the values of the organization. For
example, if an employee purchases a hybrid car, there is a $5,000 stipend toward the purchase.
Knowing how many workers love their pets, the environment is pet friendly, allowing pets in as
long ascertain behavioral standards are met. There are also rewards and recognition for
innovation. One employee recently received a bonus of a million dollars for her innovative
contributions. Google is not stopping with this list, however, and is considering new offerings
such as sabbatical programs and rotation of positions in order to keep the longer-term employees
fresh and motivated (Fortune, 2008).
One aspect of the reward offerings that is a key to their effectiveness is that of communication, to
help employees understand the philosophy of the organization about its employees and the
rewards offered. Another company on Fortune’s 100 Best Companies List is Wawa. The
Company Spotlight of Wawa shares Wawa’s philosophy and purpose for offering the non
monetary rewards it does for the employees. It is an example of how Wawa communicates why
they offer the benefits it does.
Company Spotlight: Wawa
Benefits @ Wawa are all about YOU!
At Wawa, pay and benefits work together to help our associates meet their personal financial
goals, protect their income against loss, and prepare themselves and their families for a
comfortable future. Benefits are an important part of total compensation and Wawa places a high
priority on keeping associates informed about how these programs benefit them and their
family.” (Source: http://wawa.com/joinwawa/join-benefits.asp)
One of Wawa’s benefits seems to be customized for a relatively young employee population, a
generous tuition reimbursement program after only six consecutive months of full-time
employment. With all the rewards reviewed thus far, it may be that one would think that
organizations merely “throw” benefits at employees. This is not the case. Total rewards is not
about how many different benefits an organization can offer, but rather what benefits can be
offered that help drive the organization’s strategies. What rewards will align with and reinforce
the culture of the organization while still being financially feasible?
Topic 2: Key Elements of Work Experience
In addition to non-monetary rewards, there are other important aspects of the work experience
that help to satisfy the needs, wants, and desires of employees. The plan is to get them in the
organization and keep them there. A recent job satisfaction survey published by Monster.com
revealed that while inadequate compensation is the leading reason that employees cite for
leaving a job, other top-ranking reasons include lack of career advancement, insufficient
recognition, and inadequate professional development opportunities. Good relationships with
coworkers and managers, desirable working hours, and attractive benefits were the top reasons
employees cited for remaining in a job. Increasingly, the one segment that allows an organization
to distinguish itself from others is this third element of the total rewards approach, the work
experience. If the money is available, an organization can compete with its monetary and -non
monetary rewards, but it is what one has named “a signature experience” that is difficult to
replicate (Erickson & Gratton, 2007). A signature experience is a program, policy, or practice
unique to a company that creates an appeal that is not found elsewhere. Some of the important
signature experiences or dimensions of the work experience are detailed in the third column of
table 3.1.
Company Spotlight: jetBlue
“Companies that target potential employees as methodically as they do potential customers can
gain a sustainable market advantage. That’s been the case at jetBlue. When most airlines were
using standard call centers, jetBlue devised a system based entirely out of employee’s homes.
This has become one of the airline’s signature experiences and part of its organizational lore,
attracting a strong and productive base of employees who find flexible schedules more valuable
than above-average compensation. According to CEO David Neeleman, it was more than cost
savings that prompted the company to create this signature experience. Like the flight crew, the
reservations agents are the face of jetBlue, responsible for ensuring high levels of customer
satisfaction that will translate into increased revenues. The company couldn’t afford to pay them
high salaries, so decided to appeal to a different segment, by letting them work from their homes.
We train them, send them home, and they are happy, Neeleman says. jetBlue tries to
accommodate call center agents’ varied scheduling requirements (some work only 20 hours a
week), including sometimes swapping shifts at the last minute. Employees have unlimited shift trading privileges, which they can negotiate using an online community board. Since introducing
the work-from-home option, jetBlue reports that it has more motivated and satisfied employees
and a 38 percent increase in customer-service levels, with a 50 percent decrease in management
workload per agent, compared with historical norms” (Erickson & Gratton, 2007, pp. 5-6).
WorldatWork (Christofferson & King, 2006) reported that the biggest changes seen recently in
the total rewards model were in the area of work experience. In the 2005 study, 58 percent of the
employers showed this area increased in importance. In specific importance were recognition,
development, and career opportunities. In addition to current importance, the respondents stated
that the category would be increasingly important over the next few years. The changes also
noted the interest in the values and culture of the organization, enjoying the people you work
with, a sense of accomplishment, feeling valued, recognition, flexible schedules, alternative work
arrangements, and career opportunities.
One of the important elements of the values of the organization is that of social and
environmental responsibility. This is due in part to the growing number of Millennials (born
between 1977 and 1998) in the population. These workers have been exposed to the growing
emphasis on social responsibility in their everyday lives. Just as many stockholders look for
socially responsible companies in which to invest, so is a company’s social responsibility
important to current and potential employees. One example of an organization that is seen as
being socially responsible is Starbucks, which has an active recycling program, giving its coffee
grounds to interested local groups that use them for compost. Also, older coffee beans that can
still be used for coffee are donated to nonprofit kitchens serving the needy, rather than being
thrown out. Another example is Marriott International. When guest room beds and baths were
upgraded, the still excellent and many unused bath towels, bed linens, and pillows were given
away to nonprofit organizations. Yet another large firm in Canada offers to give an additional 25
percent of annual bonuses to the charity of the employee’s choice. These examples help an
organization demonstrate its social responsibility.
Like for-profit organizations, nonprofit and governmental organizations also offer opportunities
for individuals to work in positions in which they can fulfill their social responsibilities. The
nonprofit segment is one that is expanding, through both volunteers and paid employees.
According to the Bureau of Labor Statistics, nonprofit organizations employed 1.2 million
workers in 2006 and rank in the top 20 fastest-growing fields (http://www.bls.gov). There were
837,027 charitable nonprofits in the United States in 2003, a 68-percent increase from 1993,
according to information from the National Council of Nonprofit Associations
(http://www.ncna.org). These statistics show that increasingly nonprofits will compete with forprofit organizations for needed employees. The company spotlight below on the American
Cancer Society illustrates how a nonprofit provides fulfillment while also offering a wide
assortment of competitive benefits.
Company Spotlight: American Cancer Society
Employee Benefits at the American Cancer Society
Save lives. Fulfill yours.
The people who choose to be a part of the American Cancer Society give of themselves
personally and professionally. One of their ongoing rewards is seeing the critical and tangible
impact that our work has in our communities. But that is not where our rewards end. As allconsuming as the fight against cancer is, it doesn’t eclipse the quality of life that everybody needs
to thrive.
In addition to competitive pay, Society staff members enjoy employment benefits that make this
a truly great place to work. Key among them is a commitment to a healthy work/life balance,
giving staff members access to flexible work schedules, telecommuting and job sharing
opportunities, and alternative work hours.
Another major benefit is the opportunity to learn and grow. This begins with an informative
orientation when you start working with the Society, and it continues with multifaceted training
and experiences that help you grow, both professionally and personally. For people interested in
continuing with a formal education, tuition reimbursement may also be available, depending on
your location and course of study.
Summary of Other Employment Benefits
1. Comprehensive medical, dental, and vision insurance
2. Life insurance for you and your family
3. Flexible spending accounts for health care and dependent care
4. Domestic partner coverage available in a variety of locations
5. Health and wellness programs
6. Employee assistance program
7. Short- and long-term disability insurance
8. Paid holidays
9. Generous vacation, sick, and personal time policies
10. Pension plan
11. 403(B) plan
(Source: http://www.cancer.org/docroot/emp/content/EMP_1_Benefits.asp)
The examples of programs, policies, and practices in the work experience element of total
rewards are not inclusive of all the ones that are important to employees. Other areas, such as
training and development, career opportunities, and recognition fulfill several of the highest level
of needs on Maslow’s hierarchy (Maslow,1954). These are needs of belonging, identifying with a
group, cognitive skills, positive self image, and reaching full potential. But just as with nonmonetary rewards, the work experience is not decided in isolation of the other two. The work
experience is not one that is randomly decided by an organization, but rather strategically
designed in order to attract and retain employees while still supporting the organization’s
business objectives and culture.
Topic 3: Governmental Compliance Issues
There are entire textbooks and courses devoted to the governmental compliance issues
influencing benefit administration, as there are government web sites, organizational resources,
and government agencies. These resources are evidence that the thinking that the government
recognizes that fair and equitable treatment of workers in employee benefit plans is required of
employers. This is true of both federally mandated and discretionary benefits. The following
descriptions of some of the major benefit-related laws and regulations(Bernardin,2003 and
Martocchio, 2006) are presented to emphasize that each organization needs to ensure adequate
resources, including expert knowledge of those who are consulted as decisions about total
rewards are made and administered. The relevance to employee benefits or benefits
administration follows each listing of the act, law, or regulation. Although the list may seem
daunting, the compliance issues and the list of laws and regulations are only a partial
representation of all that exist. They are not inclusive of all those that impact benefit
administration.
Some of the major laws, regulations, and acts are:
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•
•
•
National Labor Relations Act of 1935: requires mandatory bargaining of disability pay,
employer-provided health …
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