Professional Documents
Culture Documents
Compensation Presentation
Compensation Presentation
1
UNDERSTANDING TOTAL REWARDS
• Total rewards goes beyond compensation All elements matter – the value perceived can differ
Excellent
Compensation • Base salary health
• Short/Long Term Incentives My pay plan!
• Equity ownership depends on My salary is
individual
performance competitive
Environment Benefits
I love
This is an
• Leadership & Management Style • Health & welfare what I
inclusive
• Working conditions / Flexibility • Traditional benefits do for
team
• Recognition • Non-traditional benefits living!
• Culture • Support programs
• Status
2
PURPOSE OF A REWARDS PHILOSOPHY
WHAT IS A REWARDS THE GOAL OF OUR
PHILOSOPHY? REWARDS PHILOSOPHY
• A set of principles that guide the • ATTRACT + RETAIN + MOTIVATE +
development & strategy of REWARD our employees to perform
compensation, benefits, and other well and drive the Company’s success
rewards programs.
• Apply global principals that are locally
• It aligns with an organization’s values relevant
and culture
3
© 2018, General Electric Company. Proprietary information. All rights reserved.
OUR CORE REWARDS PHILOSOPHY
REWARDS DECISIONS ARE …
Every job has a relative ‘value’ which is derived from market data
5
PAY RANGES
To inform pay decisions
minimum, midpoint, and maximum) is called a pay range provides a way to manage employee pay effectively
• They define the spread of what GE has determined is • Quantifies compensation costs & enables budget decisions
appropriate to pay for a job, largely based on market data • Validates compensation strategy & aligns to business goals
from external surveys • Provides a tool to talk with employees about development
• The salary range is determined by market pay rates, • Ensures pay equity
established through market pay studies, for people doing • Allows ease of administration
External benchmark data is one of the key inputs into our pay reference range creation process
6
COMPA RATIO
MIN MAX
MIDPOINT
• A compa-ratio measures the relationship between the • The pay ranges defines the spread of what GE has
salary of an employee (or a position), and the midpoint determined is appropriate to pay for a job, largely based
of the pay range for that employee on market data from external surveys
• Pay ranges will consist of a upper and lower bounds of
Formula compensation, which allows for variation of pay within
(Base Salary) / (Range Midpoint) an accepted range considering factors such as job-
related skills, expertise and experience
• Developing knowledge/skills • Fully proficient in the role • Has broad and deep knowledge and
• Just being promoted from the demonstrating all the desired serves as expert resource and/or role
lower band competencies model/mentor
• Highly competent • Developing towards next band
• Seasoned and capable
Consider base salary: $95k Compa Ratio = (Base Salary) / (Range Midpoint)
Pay Range for the position: = (95,000/100,000)