Topic 7: Remuneration and Rewards. Dr Johanna Macneil. T opic o verview. Definitions Objectives Determining pay Pay and Equity Designing a remuneration and rewards system – “the money is the message ”. 2. Readings. Required reading:
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Dr Johanna Macneil
Pay and Equity
Designing a remuneration and rewards system –
“the money is the message”
Cash remuneration : pay
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Evaluating equity in relation to PAY
Equity Theory: People evaluate the fairness of their situations by comparing them with those of other people.
If you feel the ratio of Outputs:Inputsis equal to that of the person to your reference person, you will perceive that as equitable.
If you feel there is a discrepancy in your favour, or in favour of your reference person, you will see that as inequitable.
NB. See pp. 447-8 in Stone 2014
Gender pay gap: Many possible causes of gender discrimination in pay rates
Gender pay gap: Biased job evaluation as one cause of the gender pay gap
Base pay progression
TYPICAL DELIVERY MECHANISMS
MESSAGE THAT IS COMMUNICATED
Gaining experience & skill improves your value
You are paid what the market or the law requires
You deserve a share in the value you create
OR You’re only as good as your output
We meet your needs in a broader way than just money
We provide opportunities for you to develop
In your groups, begin by reviewing what you already know … then answer the following questions: