Reward

plans of
KFC
 GROUP MEMBERS

Presenter 1
Đặng Khánh Ngọc

Presenter 2
Hồ Nguyễn Thanh Trúc
table of contents

01 02
Literature Review Overview of KFC

03 04
Reward plans of KFC Recommendations
 -01-
Theories of
reward
What is reward?
Reward refers to all of the psychological, monetary and non-monetary
payments that an organization provides for its employees for the work
they perform.

The Aim of Reward

-01- -02- -03-

Motivation Development of Retention

high performance
Types of reward
Extrinsic reward = tangible reward

Non-financial Financial compensation

compensation
- in form of money or
- not in form of money Intrinsic= inside other things of
- stimulate employees’ economic value
morale Pride - has 2 types :
- examples : Sense of
achievement • Direct compensation
New office • Benefit
Recognition Personal growth [indirect compensation]
Promotions
Telecommuting Feeling of
Gifts respect
Compensation [direct]
refers to the money that an emplyees receives directly from his or her place
of work.

Model types

Variable pay
Base pay
o Bonus
o Wage o Commision
o Salary o Incentive plans
o Stock option
o Profit sharing
Compensation administration process
Job
evaluation
Wage
structure

Job Compensation
analysis survey

Ranking Classification Point

method Method Method
Ranking job worth Evaluating job based Breaking down jobs based on
from highest to on predetermined job compensable factors of skill, effort
lowest grades and responsibility
Benefits
refer to indirect compensations that are offered to employess in addition to
their normal pay.
Employee benefit
types

Legally required Optional

• Social security
• Unemployment
compensation
• Worker compensation
• Family & medical leave
• Paid time off
• Retirement plan
• Health insurance
• Disability protection
• Other benefits
 -02-
Overview of
KFC
Presenter: Khanh Ngoc
 kINTRODUCTION

KFC = Kentury Fried Chicken

 KFC is one of the most popular chain of fast food

 Founded by Colonel Harland Sanders.
 Subsidiary of Yum1 Brands.
 Served nearly 9 million customers around the world
 KFC proudly say :
‘We do chicken right’
 kVision, Mission and Uniqueness

 Vision
To sell food in a Fast and Friendly Environment

 Mission
To maximize profitability; improve shareholder value
and deliver sustainable growth

 Uniqueness
Starts with unique secret recipe ‘11 herbs and spices’
Countries where are KFC fast-food
 -03-
Reward
systems of
KFC
Presenter: Thanh Truc
Non-financial compensation

Regconition Programs
Non-financial compensation

Career development opportunity for good employees

Non-financial compensation

Company Trip
 Financial Compensation [direct]
Job Average Monthly
restaurant rank income
 Base Pay
General
Manager 1 $4200
Wage  non exempt employees
Salary  exempt employees Assist
Manager 2 $3500

How to set pay structure: Shift

3 $3300
Supervisor

KFC combines Ranking method Cook 4 $3000

and Compensation Survey
Cashi 5 $2800

Lobby 6 $2300
Financial Compensation [direct]
 Variable Pay
Bonus & Incentive plans
- Only salaried employees get
those
- Based on performance
- Calculated on quarterly basic
Key performance indicators
• Individuals
 Quality of work output
 Quantity of work output
 Work attendance
• Groups
 Labor cost saving
 Material cost saving
 Service cost saving
Benefits

Social Security Worker compensation

- benefits for retired/disabled KFC give financial support to

employees employees unable to work due
to a workplace injury or illness
- KFC and employees pay both
Legally required
benefits
Family&medical Leave Unemployment compensation
- be eligible to have 12 weeks off - KFC assists employees who lose
per year their job
- used for: - criteria:
. the birth/ adoption of a child . not left the job voluntarily
. employees/family members is . be able and available to work
having serious health condition
. be active seeking work

Benefits
Disability program
 Short term disability
- emplyees can’t work for more than 10
consecutive days
- provide 75% of salary
 Long term disability
- illness or injury last over 26 weeks
- provide 60% of salary
Health Benefits
- Providing an exceptional health
insurance (medical, vision,
dental)
- Including hospital stays, surgical
procedure & major medical
Travel insurance
- coverage of 2 times employees’
salary
- accident when travelling for
OPTIONAL business or personal reasons
- $100,000 – $200,000
Benefits [cont] Tuition Reimbursement

- Reach Educational Program

- receive a sum of money to subsidize
- the amount: $2000 to $3000
- criteria: be with KFC for a minimum of 6
months

Paid time off

Counselling Program
KFC offers its eligible
- for KFC employees and
employees:
their family members
- 10 paid holidays
- 2 weeks of paid
- talk free with experts
vacations
- offers any time of day,
- 2 paid personal day
24/7
- 8 paid sick leave days
Benefits [cont]
Employee discount

- eligible for discount on anything in

menu
- discount from 10% to 30% all items

Retirement plan Free food/meals

- KFC uses 401K plan - get meals for free in

- each employees’s workplace during their shift
contribution of 6% of salary
>>> KFC matches it 100%
 salary satisfaction

40% satisfied
dissatisfied

60%

Based on 18,870 ratings

Source: Indeed.com
 benefit satisfaction

employee discount

free meals

retirement plan

paid time off

health benefits

0 20 40 60 80 100 120

Source: Indeed.com
 -04-
Recommendations
Presenter Thanh Truc
How to improve reward plan

Using point method

to evaluate job

Provide reward timely Ensure the type of

after employees’ rewards fits each
achievement employees

Take feedback
from employees
Do you have any
questions?

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