Total Reward Strategy and Policy

A total package review gives an employer maximum opportunity to address both internal equity and external equity issues.

Do your employees appreciate the value of the total reward you offer?

Total package structuring gives individuals the flexibility to craft their own packages based on lifestyle and individual needs – within a total guaranteed package structure. Because guaranteed employment costs are fixed and known (there are no hidden extras), costs are easier to control, market comparisons are simpler, benchmarking is accurate and employees can easily understand the true worth of their packages … all of which results in internal equity.

This puts the employer in a strong position to attract and retain high quality staff, and gives both the employer and the employee peace of mind, as their packages will be both equitable and easily defensible in the event of an Equal Pay for Work of Equal Value audit.

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How can we help you?

• By reviewing/benchmarking your existing Total Packages to ensure both internal and external equity,

• By providing Total Package and structuring training, so that you keep the skill within your organisation,

• To communicate the value of the total reward you offer, including both cash and non-cash elements, via a 21st Century Total Reward Statement,

• By offering a Total Package structuring model which can be customised to meet your requirements and offer maximum flexibility to employees,

• To implement Total Packages and communicate the value of the package to employees,

• To structure Total Packages to ensure both the employer and employee receive maximum benefit.

Total Reward Statements

The intangible and non-cash items that do not appear on pay slips can be a real differentiator in what you offer your employees.

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How can we help you?

We can provide you with a Total Reward Statement that will:

• Accurately detail and quantify (in monetary terms) the full value of an employee’s package, including all benefits, both cash and non-cash elements,
• Demonstrate your Employee Value Proposition (EVP),
• Enhance the sense of pride your employees have in working at your organisation,
• Highlight the flexibility and choices of your reward offering,
• Demonstrate to employees the true value of everything that your organisation offers them,
• Enhance employee education opportunities regarding their benefits,
• Provide the basis for a true Total Reward comparison.

Board Evaluations

A regular board/committee evaluation process can play a significant role in improved performance on organisation level, board/committee level, and director level.

Ultimately, the entire organisation feels the effects of a thorough evaluation of board members, and of the execution of its recommendations.

Benefits include:

• clarification of roles and responsibilities,
• establishment of expected behaviours (culture),
• better communication,
• more efficient operations,
• improved leadership and decision-making,
• greater accountability,
• better teamwork.

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How can we help you?

We can assist you with:

• The evaluation of the Board members by means of an Excel-based questionnaire;
• An assessment based on the results,
• Collating and analysing the responses, and submitting a comprehensive report with recommendations to the Chairperson,
• Feedback to the Board,
• Prioritisation of identified performance gaps and development of plans to address these, with input from members.

Remuneration Committee Assistance

The work of a Remuneration Committee is highly complex and leverages off key components of a company’s strategy.

The main role and function of the Remuneration Committee is:

• to assist the Board in developing and administering a fair and transparent procedure for setting policy on the overall human resources strategy of the company,
• the remuneration of Directors and senior management of the company,
• determining their remuneration mix on the basis of their merit, qualifications, and competence.

These decision points are influenced by having regard to the Company’s operating results, individual performance, and comparable market statistics.

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How can we help you?

We can assist with:

• The formulation your Remuneration committees’ mandate,
• The formation of your Remuneration committee,
• The provision of an expert independent committee member to ensure adherence to corporate governance,
• By providing remuneration committee training, so that you keep the skill within your organisation,
• By presenting the latest reward trends to your Remuneration committee.

Executive Remuneration

Executive Remuneration is a broad term for the financial remuneration awarded to a company’s executives.

Executives have a significant impact on company strategy, decision-making, and value creation. For this reason, remuneration packages are designed with the purpose of incentivising and retaining the executive team.

Executive Remuneration packages are designed by a company’s Board of Directors, typically by the Remuneration Committee, and are heavily influenced by elements of Good Corporate Governance (King IV) and tax efficiency.

Executive Remuneration can be divided into four main categories:

Pay Package Design: Typically divided into the following distinct remuneration components:

• salary
• short-term incentives
• long-term incentives
• benefits, perquisites and severance/change-in-control agreements.

Long-term Remuneration: This makes up the bulk of most executive pay packages and is typically based on shares or share appreciation rights.

Performance-Contingent Pay: Executive pay is generally dependent on a company achieving pre-decided criteria – either specific financial results and/or strategic objectives.

Vesting Schedules: Even after financial or strategic criteria for an award is met, full ownership of the long-term award is often based on the executive meeting certain performance conditions.

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How can we help you?

21st Century understands the executive landscape and can offer your organisation a comprehensive service, which investigates all areas of executive pay. We can assist with:

• By structuring your executive packages,
• By benchmarking your fixed pay,
• By evaluating your short term incentives,
• By evaluating the worth of your long term incentives,
• By assessing the complexities of your organisation,
• By investigating the pay mix for your industry,
• By writing up a performance contract or compact,
• By developing both short term and long term incentive plans.