Total Rewards Case Study

Improved Essays
Introduction The key function within Human Resources Management this document will audit is Total Rewards, specifically comparing and contrasting the current model to a new Total Rewards package for the organizational change from a tiered organization to a new, flatter, hybrid “Money Advisor” model.
The question of appropriate compensation is a critical question as G&F Financial Group moves toward the organizational change called, “Member Experience 2.0”.

Backgrounder – Introducing G&F Financial Group
GFFG is the 10th largest Credit Union (CU) in BC, with 26,000 members and $1.3 billion in Assets-Under-Administration. GFFG employs just fewer than 200 people, has 14 branches, and a “Member Hub” call-centre. GFFG is somewhat unique due to
…show more content…
Development and Career Opportunities: These include: reimbursement for external education related to position/career, internal training opportunities, job-shadowing, temporary assignments to a higher position, creation of a development plan with direct supervisor that the organizational will support.
We specifically will look only at Point 1: Compensation, and touch on Point 5. Point 2-4 will not be affected by the organizational change.
Strengths
Strengths of the current Total Rewards structure include:
• Clear definition of compensation and career progression: in the negotiated Collective Agreement, which the non-union side mimics, there is a very clear and defined matrix of salary and career progression. Employees are easily able to determine how their salary will change, and the typical path of progression in the career, and how they will be evaluated in competing for promotions.
• Competitive: The Total Rewards structure overall is similar and competitive with other Credit Unions and compares favourably to the Big Five Banks. This is due to the Union history of Credit Unions, and also because Collective Agreements within Credit Unions are negotiated with previous or current agreements at other Credit Unions as benchmarks.
Weaknesses
Weaknesses of the current Total Rewards Structure
…show more content…
Critical Issues and Policies The organizational change to be made to G&F Financial Group is to move from a traditional, transactional banking structure, to a more-flexible, technologically-savvy, advisory model. This change is a large-scale organization-wide change that affects the majority of employees in the organization. It is critical to insure the Total Rewards compensation model changes appropriately in conjunction to minimize the negative impacts of the change. Organizational changes to be implemented by area:
• De-unionization: of the credit union by only opening non-union branches, adjusting the rules to make it easier for union-employees to move to non-union positions, and by not filling vacated union positions.
• Right-sizing: Adjusting the number of employees in a branch, combined with opening new branches to move the organization from “Few-Branch, Many Staff” to “Few-Staff, Many

Related Documents

  • Improved Essays

    They trained and provide support for people in the team because they believe that even though living in a high technology era, machine and technologies still can’t replace the people who execute strategies. Second, “Honesty, trust and integrity” are necessity for financial institution to survive in long term. They conform to the highest ethical standard for the stakeholders and these values are portrait through decision-making, execution, and maintaining relationship. Third, as a customer focused business, they aim to develop personal and life-long relationship with the customers by providing the very best for each of them based on their best interest. Fourth, integrating diversity into their business models can ensure attraction and retention of teams with best quality.…

    • 1039 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Along with a diverse compensation structure, which included different rates of pay for different products manufactured (“Piece Rate”), the company adopted an annual incentive bonus based on the year’s financial performance. The annual incentive for each employee was then tied back to their annual performance review. This meant every employee would get a bonus based on the overall company performance, however, their share was fully contingent upon them. When interviewed for the study Betty Stewart stated “I think with the incentive program the way that it is, if you want to work and achieve, then you will do it. If you don 't want to work and achieve, you will not do it no matter where you are.…

    • 883 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Employee benefits are one of the largest investments a company makes. “Benefits make up an important component of the employment relationship, providing employees with financial protection, access to health care and programs to support work/life balance” (Kwon, J. and Hein, P., 2013 page 32). Although employers are careful in creating and managing the benefit program, they often failed to look at the other benefit programs. As a result, the employers may not get the highest return for the overall spending for implementing the benefit programs.…

    • 1032 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Employers can benefit from being transparent about their compensation philosophy and having an official pay strategy” (SHRM, 2015). Based on many factors, including the company’s financial status and employee talent requirements, the compensation philosophies are established by a collaborative effort with HR and senior leadership. A successful compensation philosophy supports the organization’s strategic plans, mission, and culture (SHRM, 2015). When considering the A.P. Moller-Maersk Group study, Maersk established a compensation philosophy that would encourage quality, high performing talent to stay with the organization.…

    • 868 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Businesses would be able to better to retain those with the greatest talent if they can pay based upon the individual and his market value. Pay needs to move from a determination based upon job descriptions to being based upon a person’s professional development activities. Total compensation includes pay, recognition, promotion and development opportunities, and non-monetary benefits (Milkovich, 2010). The Walt Disney’s Company strategy incorporates a compensation strategy that rewards performance. This includes individual merit increases and the performance objectives to be met in order to receive them.…

    • 1099 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Organizational Vision

    • 1261 Words
    • 5 Pages

    Another important part of total rewards is the incentives for the employees to retain the talent. Having well paid employees through performance evaluations will encourage those to act and perform better for stronger incentives. Another total reward is to give benefits to the employees. Having all plans form medical, dental, to paid time off or disabilities will attract more employees then other business will that do not have benefit programs for there…

    • 1261 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Performance measures are easily developed and exchange between groups and individuals within groups foster team spirit (McGraw-Hill/Irwin, 2002). Team incentives also increase participation of employees in decision-making, sharing of knowledge, cushions and protect individual employees who may feel exposed by individual incentives, and is highly supported among employees (McGraw-Hill/Irwin, 2002). Team incentive plans boost interrelation between employees and management, makes each one feel part of the whole, lead to co-operate problem sharing and a greater correlation between individual rewards and organizational profits (Milkovich,…

    • 777 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Core Credit Union Case

    • 1381 Words
    • 6 Pages

    Credit Unions provide financial services to clients like Banks but they are cooperatives and non-profit organizations unlike banks.it is in existence since four decades and the versatility of Information Technology contributed a major chunk in the growth of the Core Credit Union’s infrastructure and operations. In Georgia, they were the first to adopt IT infrastructure for their operations, thereby improving the quality of service to client. The main leveraged were the existing clients who moved…

    • 1381 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    From 2008 through 2012, 481 FDIC insured banks were either liquidated or merged with healthier institutions. Credit Unions saw 136 involuntary liquidations or assisted mergers at the hands of the National Credit Union Share Insurance Fund. In 2009, Credit Unions saw their delinquency for mortgage loans peak at 1.61 percent compared to 8.86 percent at the banks. Many of the largest corporate credit unions in the United States invested in troubled mortgage-backed securities which resulted in record declines in value and effectively rendering five of these institutions bankrupt.…

    • 654 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    The implementation of an individual performance management process that aligns with company goals affects the employee’s performance and consequently contributes positively to an organization’s success. The three pieces of evidence that support this statement are: • Performance management has a direct impact on employee characteristics such as engagement, commitment, motivation and skill. • Performance management improves succession planning by allowing organizations to assess which employees are ready for a promotion and who needs additional training in their current role. • Performance management provides companies, which areas need to have additional training and development.…

    • 1322 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Harrah Case Study

    • 1322 Words
    • 6 Pages

    Threats Harrah’s threats include regulatory pressures that can lead employees away from engaging too intimately with customers. Other threats include competitors’ ability to model bonus structures similarly which could impact the demand for talent and lucrativeness of the program. Finally, the gain sharing program is not tied to profitability so it could ultimately deter profits if program is paying out year over year due to goals being attain through customer service but not revenues.…

    • 1322 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    The case study is based on two companies that are L.L. Bean and Aflac Insurance. The case study is related to the use of total rewards by companies in order to support the organization’s missions and values, which achieve strategic outcomes. The base company is Aflac to understand and get the idea about the compensation and benefit structures, which achieve organizational outcomes. Discussion Company uses its own products or services to enhance the total compensation for its employees Aflac offers its products to its all dedicated employees without any cost; for instance proposing employer-paid life insurance, which Aflac paid company supported accident protection insurance and cancer policy. Aflac dedicate its resources to determinations,…

    • 891 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    The plans could start positive relationships between employee perceptions of pay for performance and satisfaction with pay, which of course would increase retention. Several studies suggest that individuals are more attracted to organizations with pay systems that rewards the individual employee for his or her own merits rather than group efforts. With the increased attractiveness of the company the quality of potential employees would potentially increase. 4) To realize the effects of their efforts for the use of pay-for-performance plans a company must adhere to several conditions. The most important condition is defining performance.…

    • 885 Words
    • 4 Pages
    Superior Essays
  • Great Essays

    Introduction In this case analysis, we will be discussing the Diagnostic Products Corporation (DMC) Performance Bonus Program. In examining this program, we will evaluate it as a whole and how it is currently being implemented. After doing this, we will offer any suggestions we feel will enhance this compensation method. Following this, we will look at alternatives to the bonus compensation option.…

    • 1705 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    Today humans are considered as one of every company’s most important assets, so they efforts need to be efficiently and effectively rewarded. Compensation is a main factor for organization to attract, retain and motivate its workforce. Individuals look for jobs that not only suit their abilities and talents, but compensate them accordingly in terms of salaries and other benefits. "The term employee benefits refer to compensation other than an hourly wage or salary. Examples of specific employee benefits include paid vacation, medical insurance coverage, and tuition reimbursement, but the number of employee benefits can be staggering” (Martocchio, 2014).…

    • 1182 Words
    • 5 Pages
    Improved Essays