Compensation and Benefits Final
Compensation
Exam – Lecture
and Benefits
Notes _Final
Comprehensive
Compensation
Exam – Lecture
and
Study
Benefits
Notes
Guide.pdf
_Final
Comprehensive
Exam – Lecture
Study Notes
Guide.pdf
_ Comprehensive Study Guide.pdf
Compensation and
Benefits Final
Exam – Lecture
Notes /
Comprehensive
Study Guide
Compensation and Benefits Final
Compensation
Exam – Lecture
and Benefits
Notes _Final
Comprehensive
Compensation
Exam – Lecture
and
Study
Benefits
Notes
Guide.pdf
_Final
Comprehensive
Exam – Lecture
Study Notes
Guide.pdf
_ Comprehensive Study Guide.pdf
,Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf
Lincoln Electric: Who they wanted to attract, retain, and Who they wanted to attract, retain, and motivate
motivate Self-driven, competitive, ambitious employees
Competition and adequate incentives help foster someone to develop to their
fullest potential
Lincoln Electric: How they did it Build quality products at a lower price than competitors
Operational efficiency
Diffusing innovation
Be able to weather recessions
Scaling up and down
Lincoln Electric: Key takeaways Rewards practices need to be aligned to the business strategy
Rewards practices need to be aligned with each other
Rewards practices do not need to make everyone happy, but they should make the
right people happy
Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf
,Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf
Lincoln Electric: Money, Mix, and Message Money:
- Starting pay is below average, including bonuses and piece rates
Average becomes significantly more over time
- Bonuses:
Paid at company's discretion
Sometimes could go so far as to match the salary of the employee
- Piece-rates:
Could only be changed when mgmt has a change in the method of doing that
particular job
Determined based on a pay survey
Mix:
"Entirely" short term incentives
Message:
Good place to be if you want to work hard
Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf
, Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf
Southwest Airlines Who they wanted to attract, retain, and motivate
People who value a fun working environment (vs. wages)
Good cultural fits/”family spirit”
Retention
People who value flexibility
Care about attitude more than experience (teamwork)
Creative, willing to use autonomy
How they did it
Work - efficiency, everyone helping each other, teams have high degree of
autonomy, CEO led by example, very flat hierarchical pay structure.
Entry Level - recruit for cultural fit, rather than experience, values referrals (want
people who like their product)
Training - highly customized and internal, cross functional training, team-building
activities
Retention - turnover was exceptionally low, no furloughs or layoffs
Key takeaways
“Benchmark against the market you will source and lose talent”
Other notes
Always ask: what’s the market against which you want to source talent? It’s not
always industry incumbents with similar job descriptions.
Then ask: how can you structure comp to be attracted to that kind of worker?
Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf
Compensation
Exam – Lecture
and Benefits
Notes _Final
Comprehensive
Compensation
Exam – Lecture
and
Study
Benefits
Notes
Guide.pdf
_Final
Comprehensive
Exam – Lecture
Study Notes
Guide.pdf
_ Comprehensive Study Guide.pdf
Compensation and
Benefits Final
Exam – Lecture
Notes /
Comprehensive
Study Guide
Compensation and Benefits Final
Compensation
Exam – Lecture
and Benefits
Notes _Final
Comprehensive
Compensation
Exam – Lecture
and
Study
Benefits
Notes
Guide.pdf
_Final
Comprehensive
Exam – Lecture
Study Notes
Guide.pdf
_ Comprehensive Study Guide.pdf
,Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf
Lincoln Electric: Who they wanted to attract, retain, and Who they wanted to attract, retain, and motivate
motivate Self-driven, competitive, ambitious employees
Competition and adequate incentives help foster someone to develop to their
fullest potential
Lincoln Electric: How they did it Build quality products at a lower price than competitors
Operational efficiency
Diffusing innovation
Be able to weather recessions
Scaling up and down
Lincoln Electric: Key takeaways Rewards practices need to be aligned to the business strategy
Rewards practices need to be aligned with each other
Rewards practices do not need to make everyone happy, but they should make the
right people happy
Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf
,Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf
Lincoln Electric: Money, Mix, and Message Money:
- Starting pay is below average, including bonuses and piece rates
Average becomes significantly more over time
- Bonuses:
Paid at company's discretion
Sometimes could go so far as to match the salary of the employee
- Piece-rates:
Could only be changed when mgmt has a change in the method of doing that
particular job
Determined based on a pay survey
Mix:
"Entirely" short term incentives
Message:
Good place to be if you want to work hard
Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf
, Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf
Southwest Airlines Who they wanted to attract, retain, and motivate
People who value a fun working environment (vs. wages)
Good cultural fits/”family spirit”
Retention
People who value flexibility
Care about attitude more than experience (teamwork)
Creative, willing to use autonomy
How they did it
Work - efficiency, everyone helping each other, teams have high degree of
autonomy, CEO led by example, very flat hierarchical pay structure.
Entry Level - recruit for cultural fit, rather than experience, values referrals (want
people who like their product)
Training - highly customized and internal, cross functional training, team-building
activities
Retention - turnover was exceptionally low, no furloughs or layoffs
Key takeaways
“Benchmark against the market you will source and lose talent”
Other notes
Always ask: what’s the market against which you want to source talent? It’s not
always industry incumbents with similar job descriptions.
Then ask: how can you structure comp to be attracted to that kind of worker?
Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf Compensation and Benefits Final.pdf
