Total Rewards by Ashry - Basics

Human Resource Management
Introduction to Total
Rewards Management
Islam El Ashry
Human Resource Management - Total Rewards
How do we get the best from this workshop?
Questions are welcomed Be on time Cell phones Respect

“Just raise your hand” “153min
Hours Max
break” are silent Transparency
10 min Break
Prepared by
Islam El Ashry
Islam El Ashry
Professional HR Manager with over 11 years of experience in various HR areas and functions, including
but not limited to compensation & benefits, payroll administration, performance management, talent
management, organization development, training, talent acquisition, and personnel.
In addition, I have multi-cultural and diversified experience gain from working in both local and
international firms within different industries including; Retail, Mall Management, Real Estate
Development, Construction, F&B, Entertainment, FMCG, and Manufacturing.
Furthermore, I hold an MBA, and I have acquired several HR certificates and workshops.
Your Name?
Your Company & Function?
Prepared by
Islam El Ashry
Learning Objectives
➢ Identify the key components of Total Rewards.
➢ Define and explain the purpose of the compensation and benefits.
➢ Identify the key factors influencing employee compensations.
➢ Understand the various compensation strategies and the equity concepts.
➢ Learn the terminology commonly used in salary surveys.
➢ Explore different methods for evaluating job positions.
➢ Get a brief overview of how to use Hay Job Evaluation method.
➢ Learn the basics of creating a salary structure and how to conduct salary gap analysis.
Prepared by
Islam El Ashry
John Adams Equity Theory Diagram
Scales ‘calibrated’
What I put into my job: time, effort, ability, What I get from my job: pay, bonuses,
loyalty, flexibility, integrity, commitment, benefits, security, recognition, development,
reliability, personal sacrifice, etc. reputation, responsibility, enjoyment, etc.
Inputs Outputs
People become demotivated, reduce input and/or seek change/improvement
whenever they feel they are not being fairly rewarded.
Fairness is based on market norms.
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Islam El Ashry
Compensation & Benefits
Total Rewards System

The total reward system that an organization offers to its employees goes beyond financial giving, it include all aspects
of the work environment that provides job satisfaction and continuous improvement of employees productivity.
Components of Total Reward System
Compensation Benefits Company Stability
Physical Work Work Importance

Workload
Environment and Value
Development Organization
Recognition
Opportunities Culture
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Islam El Ashry
Introduction to the Compensation & Benefits
Most employees don't work just because they enjoy/love their job; they also expect to
receive a fair salary and rewards for their efforts.
Compensation and benefits are payments and services that are provided to the employees
in return for their contribution to the organization; that is, for doing their jobs.
These rewards need to be created, managed and distributed efficiently because the right
compensation and benefits systems ensure that hard-working employees are rewarded
fairly and in the most cost-effective way for the company. This, in turn, then motivates
employees to sustain and improve their performance.
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Islam El Ashry

Purpose:
Ensuring external, internal, individual and procedural equity to attract, motivate and retain employees.
- Attract the qualified calibers (Competitive Salaries):

Creating competitive salaries to attract the most desirable and qualified candidates
- Motivate the employees (Incentive Scheme):

In order to achieve both individual and organizational goals, a good incentive scheme must be in place.
- Retain the best talents (Benefits Package):

Designing good benefits and services linked with employees’ grades to improve work satisfaction and loyalty.
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Islam El Ashry

1- Compensation 2- Benefits
(Direct Financial Payment) (Indirect Financial Payment)
Time-Based / Fixed-Based Performance-Based / Variable-Based Financial Payment * Non-Financial Payment**

(Wage - Salary) (Incentive - Merit raise - Commission) (Individual & Family medical insurance) (Flextime - Discounts)
* Financial Benefits : Social insurance, Personal loan, Learning Courses, Mobile device, Mobile line, Mobile Allowance, Transportation means,
Transportation Allowance, Private car, Holidays payments, Overtime payments, Schooling & Accommodation.
** Non-Financial Benefits: Compressed week, Bank loans, Premium card, Telecommuting & Work from home.
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Company Compensation Strategies
Lag the Market Match the Market Lead the Market
‐ Lead: The company shall pay more than others in the same area or industry. These
companies are leading in terms of offering higher salaries.
‐ Match: The company shall pay salaries that are similar to what others in the same area or
industry are paying “in line with the average”.
‐ Lag: The company shall pay less than what is considered normal in their area or industry
“It will be behind in terms of offering competitive salaries”.
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Islam El Ashry
Factors Affecting Employee Rewards
- Responsibilities, Accountabilities, Decisions & Actions.
- Tasks Criticality, Complexities, Challenges & Hazards.
- Technical Skills, Experience, Qualifications & Competencies Needed
Job
Rewards
Person Market
- Experience - Industry & Competitors “Other Organizations”
- Seniority - Company Strategy, Size & Affordability (Profits)
- Competencies - Country Laws
- Goals / Objectives (Performance) - Supply and Demand (Employment)
- Work Location & Cost-of-Living (Inflation)
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Islam El Ashry
Triangle of Rewards
JD & JS 2
Job
Internal Equity: Benchmark
Analysis
KRAs JE Job Salary
Pay Ranges Survey
Job Grade & Benefits
KPIs 3 1
Individual Equity Rewards External Equity Pay
Strategy
Person Pay Review
& Bonus
Market
Leadership Behavioral
Employee
Competencies Competencies
Rating
Tch
Objectives Appraisal
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Islam El Ashry
Compensation Equity
As jobs must be fairly compensated; any differences in pay rates must be justified to ensure that all jobs are paid
what are they worth.
Internal Equity:
Fairness of pay among current employees working for the same company and performing the same or similar jobs
External Equity:
Fairness of pay against the external market “job pay rates in other companies in the similar field”.
Individual Equity:
How fair an individual’s pay as compared with his performance and contribution to the organization.
Procedural Equity:
Fairness of the processes and procedures used to make decisions regarding the allocation of pay.
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Islam El Ashry
Addressing Equity Issues
Salary or Market
External equity
Surveys
Job analysis and job

How to Internal equity evaluation
address
equity issues Individual Performance appraisal
equity and incentive pay
Procedural Communications and

equity internal surveys
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Islam El Ashry
Our Roadmap to A Well-Designed Salary Structure
Salary 4
Structure 3 Job
Evaluation
Salary 2
Survey Job
1 Analysis
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Islam El Ashry
Job
1
Analysis
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Islam El Ashry
Job Analysis
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Islam El Ashry
Salary 2
Survey
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Islam El Ashry
Salary Surveys
Why we do salary surveys?
- To observe the market salaries
- Ensure and maintain external equity
- To perform compensation benchmarking
- Set or update pay rates
Methods of salary surveys:

1- Formal Salary Surveys:
Buy salary surveys from Job master, Mercer or Hay “Korn Ferry”.
2- Informal Salary Surveys:

Conduct in-house salary survey.
Prepared by
Islam El Ashry
1- Formal Salary Survey

Annual Basic Salary Annual Guaranteed Cash
Position
JOBMASTER Standard Position 10th 1st 3rd 90th 10th 3rd 90th
Level Median Average 1st Quartile Median Average
Percentile Quartile Quartile Percentile Percentile Quartile Percentile
Purchasing Manager Level (14) 556,110 579,425 605,000 646,998 674,370 770,558 590,380 626,070 667,000 699,401 765,558 848,548
Facilities Manager Level (13) 262,911 270,864 344,996 355,230 448,644 462,720 358,297 415,000 438,026 464,362 532,000 594,644
Senior Administration Level (08) 96,374 102,858 115,827 125,944 133,855 152,290 115,849 123,513 143,025 154,120 165,699 208,346
Data Entry Level (05) 24,015 29,919 35,250 38,033 43,735 52,363 31,519 35,627 41,486 45,448 51,178 63,100
Facilities Supervisor Level (10) 144,016 166,430 204,000 210,349 262,564 282,715 144,286 181,008 228,611 230,426 273,814 314,609
Customer Service Senior Representative Level (08) 87,192 95,708 104,088 111,814 121,344 131,857 97,068 107,034 114,012 119,061 125,811 131,857
Financial Analyst Level (07) 58,070 78,119 80,760 86,172 100,368 113,039 73,200 79,728 80,760 92,766 102,361 119,337
Customer Service Representative Level (05) 38,400 38,400 54,192 56,362 71,377 82,758 38,400 38,400 74,827 67,380 83,717 93,084
Accountant Level (06) 61,221 63,958 66,243 88,343 79,782 95,558 74,699 88,918 92,272 112,284 100,872 107,172
Annual Total Actual Cash Annual Total Target Cash

Position
JOBMASTER Standard Position 10th 1st 3rd 90th 10th 3rd 90th
Level Median Average 1st Quartile Median Average
Percentile Quartile Quartile Percentile Percentile Quartile Percentile
Purchasing Manager Level (14) 607,985 653,870 708,000 721,414 794,304 848,548 590,380 626,070 667,000 699,401 765,558 848,548
Facilities Manager Level (13) 358,297 415,000 447,960 480,434 574,429 624,212 358,297 415,000 444,139 477,304 574,429 634,673
Senior Administration Level (08) 117,355 131,586 151,304 165,699 177,239 233,137 117,134 127,948 149,638 158,805 168,461 208,346
Collector Level (05) 31,668 36,176 43,125 47,113 53,957 67,699 31,676 35,627 41,640 46,930 53,316 67,699
Treasury Accountant Supervisor Level (10) 159,878 197,540 240,334 249,304 294,750 319,428 155,806 192,770 240,334 242,580 275,557 319,428
Customer Service Senior Representative Level (08) 103,988 110,646 123,933 129,587 139,731 149,124 104,833 110,646 121,024 125,805 132,330 136,034
Financial Analyst Level (07) 81,468 88,223 91,722 103,773 112,269 136,663 80,252 81,645 102,361 105,773 108,397 138,027
Customer Service Representative Level (05) 38,400 38,400 83,524 70,598 92,671 94,796 38,400 38,400 83,524 71,695 89,203 107,472
Accountant Level (06) 80,229 92,337 95,895 116,775 106,858 111,553 80,229 88,918 92,298 114,227 105,257 108,132
Prepared by
Islam El Ashry
2- Informal Salary Survey
Lag the Market Match the Market Lead the Market
Below-Market Below-Market Middle-Market Middle-Market Above-Market Above-Market
Example Strategy Strategy Strategy Strategy Strategy Strategy
10th Percentile 1st Quartile 2nd Quartile Average 3rd Quartile 90th Percentile
Annual Basic
27,000 L.E 35,000 L.E 40,000 L.E 40,600 L.E 48,000 L.E 53,200 L.E
Salary for Worker
90% of 75% of 50% of 25% of 10% of

Average from
companies companies companies companies companies
10th
pay above pay above pay above pay above pay above
percentile to
and 10% of and 25% of and 50% of and 75% of and 90% of
90th
companies companies companies companies companies
percentile.
pay below. pay below. pay below. pay below. pay below.
Prepared by
Islam El Ashry
Steps to conduct an informal / in-house salary survey:
1 Collect salary data using different sources from companies within the same or a related industry
2 Check the accuracy of the data collected
3 Rank the companies in accordance with their salaries in ascending order
4 Analyze the market for each position using the equations of quartiles /percentiles
5 Perform salary / compensation benchmarking
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Islam El Ashry
Salary Data
Sources
Job Job / Exit The

Network Job Ads
applications interviews Internet
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Islam El Ashry
3
Job
Evaluation
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Islam El Ashry
Job Evaluation
What is job evaluation?
A systematic comparison done in order to determine the worth of one job relative to
another job.
Why we do job evaluation?

To ensure internal equity through compare jobs and classify them into appropriate pay
ranges.
Basic principle:
Jobs that require more responsibilities and more qualifications and complex duties
should be paid more highly than jobs with lesser requirements.
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Islam El Ashry
Steps of Job Evaluation
1 Prepare / Review job analysis, job description and organization chart.
2 Choose the most suitable job evaluation method that meets the organization’s needs.
3 Evaluate each position utilizing the chosen method.
4 Group Similar Jobs into Pay Grades
Prepared
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IslamElElAshry
Islam Ashry
Methods of Job Evaluation
1- Non-quantitative 2- Quantitative
Approach Approach
Job Point Factor

Ranking
Classification Method Comparison
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Islam El Ashry
1- Non-Quantitative Approach
A measurement tool considering the entire Job or its importance as A whole
without digging deeper.
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Islam El Ashry
A. Ranking Method (Job to Job):
Raters examine job description and rank the jobs from the highest
to the lowest according to their overall importance to the
organization.
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Islam El Ashry
Ranking Method Sample
Grade Position
Grade 9 Managing Director
Grade 8 HR Manager & Accounting Manager
Grade 7 Chief Accounting & HR Section Head
Grade 6 Accounting Supervisor / C&B Specialist
Grade 5 Recruitment Specialist
Grade 4 Accountant / Personnel
Grade 3 Technician
Grade 2 Customer Service Rep
Grade 1 Worker
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Islam El Ashry
B. Classification Method (Job to Scale):
Define categories or classes of jobs “depending on the

organization's needs and structure” contain similar jobs for example
; Blue collar layer, junior employees layer, experienced employees
layer, senior employees layer, supervisors layer, section heads layer,
managers layer, top-management layer.
- The classification criteria can include factors such as skill level, decision-
making authority, supervision, and scope of responsibilities
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Islam El Ashry
Classification Method Sample
Grade Criteria / Scope Position

Highest level of strategic leadership and decision-making for the entire
Grade 8 General Manager
organization
Responsible for overseeing and managing specific departments or functions
Grade 7 HR Manager & Accounting Manager
within the organization
Accounting Supervisor / Fleet Supervisor /
Grade 6 Responsible for supervising and coordinating the work of team or section
Senior C&B Specialist
Extensive experience and expertise in a specific field, often responsible for HR Specialist / Finance Officer / Senior
Grade 5
mentoring or guiding others Accountant
IT Technical Support Specialist /
Grade 4 Positions requiring specialized skills and expertise in a specific field
Accountant
Grade 3 Entry-level positions in office-based roles, often involving routine tasks Customer Service Agent / Data Entry
Grade 2 Positions requiring specialized skills in technical or manual work Technician
Grade 1 Entry-level positions in technical or manual work, often involving basic tasks Worker / Helper / Porter
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Islam El Ashry
2- Quantitative Approach
“A measurement tool considering the job elements / certain factors”
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Islam El Ashry
Compensable Factors
Measurable factors that can impact the price of a job in
a given pay market.
How to define compensable factors?
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Islam El Ashry
Compensable Factors
Input Processing Output
Knowledge / Responsibility/
Skills Accountability
Effort Work Condition
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Islam El Ashry
A. Factor Comparison Method (Job To Job):
Identifying compensable factors then conducting Job-to-job comparison
“Ranking” but instead of the overall ranking of jobs we rank each job several
times, once for each of the compensable factors. (e.g. rank all jobs in terms
of skills, then once more according to mental requirements and so on.
- The rankings for each job are combined into an overall numerical rating for
the job.
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Islam El Ashry
Factor Comparison Method Sample
1- Ranking Key Jobs by Factors
How does it work?
Mental Physical Work
Grade Effort Effort Condition Skills Responsibility Suppose we have a new job “Painter”
and the job of the ‘Painter’ is found to
Welder 3 1 3 4 2
be similar to
Plumber 4 2 2 3 4
Security Guard 2 3 1 2 3 Plumber in skill (1800),
Worker 1 4 4 1 1 Welder in mental effort (1292),
4 is high, 1 is low Security Guard in physical effort (1145),
Worker in working conditions (1091),
2- Ranking Key Jobs by Salary Rates
Welder in responsibility (862).
Monthly Mental Physical Work
Grade
Salary Effort Effort Condition
Skills Responsibility
The wage rate for this job would be:
Plumber EGP 9000 (4) 2400 (2) 1200 (2) 1200 (3) 1800 (4) 2400
Welder EGP 5600 (3) 1292 (1) 431 (3) 1292 (4) 1723 (2) 862 (1800 + 1292 + 1145 + 1091 + 862) is
Security Guard EGP 4200 (2) 764 (3) 1145 (1) 382 (2) 764 (3) 1145 EGP 6190
Worker EGP 3000 (1) 273 (4) 1091 (4) 1091 (1) 273 (1) 273
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Islam El Ashry
B. The Point Method (Job to Scale):
Identifying compensable factors and breaking them down into degrees or

levels which are then assigned points. Each job is rated using the job
evaluation rating scale.
- The points for each factor are summed to form a total point score for the
job.
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Islam El Ashry
Human Resource Management - Compensation and Benefits
Point method Sample
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Islam El Ashry
Hay Job Evaluation Method
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Islam El Ashry
Salary 4
Structure
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Islam El Ashry
Pay Grades / Structure “Design”
Salary
Pay Min Max Market Price Mid P. Overlap
Bands HRL
Grade
Mid Point (Hay 75th P.) Jump %
Range Human Resources Accounting Legal
Point Point Spread
19 12 78,909 98,636 118,363 100,000 45% 50%
Top Management 18 11 54,420 68,025 81,630 69,000 45% 7% 50% Finance Director & Deputy CEO
(Top Executives,
Directors) 17 10 37,531 46,914 56,296 47,600 45% 7% 50% HR Director Legal Director
16 9 25,883 32,354 38,825 33,000 45% 7% 50%
15 8 17,851 22,313 26,776 23,000 30% 7% 50%

Middle-Level 14 7 13,731 17,164 20,597 17,000 30% 31% 50% HR Manager Accounting Manager
Management
(Managers, Section
Heads and Supervisors) 13 6 10,563 13,203 15,844 14,000 30% 31% 50% HR Section Head Legal Manager
12 5 8,125 10,156 12,188 10,000 30% 31% 50% HR Supervisor Chief Accountant Legal Section Head
11 4 6,250 7,813 9,375 7,800 25% 31% 50% HR Senior Specialsit Accounting Supervisor Legal Supervisor
Low Level Jobs 10 3 5,000 6,250 7,500 6,550 25% 40% 50% HR Specialist Seniro Accountant Senior Lawyer
(Specialist, Technician, Sr.
Technician / Entry Prof.)
9 2 4,000 5,000 6,000 5,100 25% 40% 50% HR Coordinator Accountant Lawyer
8 1 3,200 4,000 4,800 4,100 0% 40% 50%
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Pay Structure Finetuning
-Adjusting Below-Range Salaries.
- Freezing Over-Range Salaries.
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Islam El Ashry
Questions
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Islam El Ashry
References
• SHRM (Society for Human Resource Management). Retrieved from https://www.shrm.org/

• AIHR (Analytics Institute of HR). Retrieved from https://www.aihr.org/
• Korn Ferry. Retrieved from https://www.kornferry.com/
• Gary Dessler. Human Resource Management. 16th ed. Pearson, 2020
• WorldatWork. The WorldatWork Handbook of Compensation, Benefits & Total Rewards. Wiley
• Lemon Pip Consulting Limited and Robert Mosley. Bringing knowledge to life.
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Islam El Ashry
Thanks
Islam El Ashry
.
Mobile: (+2) 01003493423

Email: ashry188@outlook.com
LinkedIn: linkedin.com/in/ashry18
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Islam El Ashry

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Human Resource Management

How do we get the best from this workshop?

Questions are welcomed Be on time Cell phones Respect

Total Rewards System

Components of Total Reward System

Compensation Benefits Company Stability

Physical Work Work Importance

Introduction to the Compensation & Benefits

Compensation & Benefits

- Attract the qualified calibers (Competitive Salaries):

- Motivate the employees (Incentive Scheme):

- Retain the best talents (Benefits Package):

Compensation & Benefits

Time-Based / Fixed-Based Performance-Based / Variable-Based Financial Payment * Non-Financial Payment**

Company Compensation Strategies

Lag the Market Match the Market Lead the Market

Job analysis and job

Procedural Communications and

Our Roadmap to A Well-Designed Salary Structure

Our Roadmap to A Well-Designed Salary Structure

Our Roadmap to A Well-Designed Salary Structure

Methods of salary surveys:

2- Informal Salary Surveys:

1- Formal Salary Survey

Annual Total Actual Cash Annual Total Target Cash

90% of 75% of 50% of 25% of 10% of

Steps to conduct an informal / in-house salary survey:

2 Check the accuracy of the data collected

3 Rank the companies in accordance with their salaries in ascending order

5 Perform salary / compensation benchmarking

Job Job / Exit The

Our Roadmap to A Well-Designed Salary Structure

Why we do job evaluation?

Steps of Job Evaluation

1 Prepare / Review job analysis, job description and organization chart.

3 Evaluate each position utilizing the chosen method.

4 Group Similar Jobs into Pay Grades

Methods of Job Evaluation

Job Point Factor

Grade 9 Managing Director

Grade 8 HR Manager & Accounting Manager

Grade 7 Chief Accounting & HR Section Head

Grade 6 Accounting Supervisor / C&B Specialist

Grade 5 Recruitment Specialist

Grade 4 Accountant / Personnel

Grade 2 Customer Service Rep

Define categories or classes of jobs “depending on the

Grade Criteria / Scope Position

Grade 2 Positions requiring specialized skills in technical or manual work Technician

How to define compensable factors?

Input Processing Output

Effort Work Condition

Identifying compensable factors and breaking them down into degrees or

Hay Job Evaluation Method

Our Roadmap to A Well-Designed Salary Structure

19 12 78,909 98,636 118,363 100,000 45% 50%

16 9 25,883 32,354 38,825 33,000 45% 7% 50%

15 8 17,851 22,313 26,776 23,000 30% 7% 50%

8 1 3,200 4,000 4,800 4,100 0% 40% 50%

-Adjusting Below-Range Salaries.

- Freezing Over-Range Salaries.

• SHRM (Society for Human Resource Management). Retrieved from https://www.shrm.org/

Mobile: (+2) 01003493423

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