Remuneration

Total Reward is a critical tool by which organisations attract, engage and retain human capital. These are essential input criteria to the psychological and contractual agreement formulated between employers and employees, in return for the latter’s time and efforts in advancing the interests of the organisation.

Total Reward is not the only means as there are many other aspects to an employee value proposition, but it is certainly vital to the game. Total Reward spans all components of remuneration from guaranteed pay and benefits through to short and long term incentives. The mix of remuneration paid to an employee or executive is widely recognised as the total rewards mix.

Khokhela Reward understands the key role that this reward mix plays in driving balanced behaviour that aligns with the shareholders’ and stakeholders’ objectives. Khokhela Reward works closely with its clients to design customised Total Reward Solutions that drive value-creating behaviour.

These solutions range from individual package development to enterprise wide reward strategies.

Khokhela Consulting is a member of the South African Reward Association.

 

 

  • Developing reward policies and strategies which align with the business strategy. This is one of the most important aspects of remuneration which is often overlooked or not developed properly.

  • Drafting of job descriptions and job profiles based on one-on-one interviews with the job incumbent and their direct manager/supervisor.

  • Implementation and grading of positions using the Paterson Job Evaluation System. Also available is a two day in-house training course in the use of the Paterson Job Evaluation System. The workshop covers the rules of the system as well as practical exercises.

  • Comparisons of select positions against the appropriate markets using one two or even three approaches to ensure confidence in the benchmarks determined. Full report submitted with recommendations if required.

  • Benchmarking and structuring of executive pay.

  • Development of pay models according to client specific needs. e.g. against national / target markets. Providing guidance to clients in the identification of critical / key skills and key talent. Comparison of individual pay against the pay line and providing of recommendations as well as modelling of different increase scenarios after including performance and other factors.

  • Analysis of a company’s pay to identify inequalities. Highlighting of potential risks and assisting in resolving pay issues.

  • Assisting clients with the conversion from basic salary and benefits to cost to company. Providing full costing of transition of total package based on different scenario`s. Conducting briefing sessions with employees on changes to cost to company.

  • Employee package structuring tool, customised according to companies specifications to assist employees in structuring their own packages. This tool is normally used in conjunction with cost to company conversions but can also be used by companies to annually structure the salaries of employees as well as assist in salary offerings for new employees.

  • Design, drafting and modelling of annual or shorter term incentive schemes to motivate and reward participants to achieve goals which are aligned with the strategy and objectives of the organisation. Scheme`s should align with and link into the performance management system.

  • Design, drafting and modeling of long term /shares based incentive schemes. Schemes can be designed for listed and private companies as well as SOE’s. Long term incentive schemes are an essential component of an executives pay and due to the long term nature and the amounts involved, need to be designed and modelled and drafted very carefully. The process of obtaining approval is also critical. Experience is essential to ensure the consequences of any design are in line with shareholders objectives.

  • Design, drafting and modeling of sales schemes. Often sales representatives, account managers and account executives become comfortable with the level of commission and are not driven to go the extra mile or do other work which is critical to the success of the business. Well-designed sales schemes can change this behaviour and align the sales peoples’ behaviour with that of the company’s objectives

     

  • Design, drafting and modelling of production bonuses to motivate and reward participants to achieve goals which are aligned with the objectives of the organisation. Line of sight is critical as well as ensuring that the bonuses are paid for value adding activities.

     

  • Development of criteria for recognition and design of the scheme.

  • Benchmarking and structuring of pay for non-executive directors including chair persons and committee members.

  • Surveys are customised according to client specific needs, and are used to benchmark select positions against the market. The commissioning company chooses the participants, the positions to be surveyed as well as the format in which to present the results.