BU354 Lecture Notes - Lecture 4: Canada Labour Code, Job Evaluation, Job Analysis
Strategic Pay Plans
-Total Rewards: Integrated package of all rewards (monetary and nonmonetary, extrinsic and
intrinsic) gained by employees arising from their employment
Five Components of Total Rewards
1. Compensation - includes direct financial payments (wages, salaries, incentives etc.)
2. Benefits - includes indirect payments in form of financial benefits
(insurance/vacation)
3. Work/Life Programs - programs that help employees do their jobs effectively (ex. flexible
scheduling)
4. Performance and Recognition – includes pay-for-performance and recognition programs
5. Development and Career Opportunities – focuses on planning for the advancement and/or
change in responsibilities to best suit individual skills, talents, and desires (tuition assistance,
coaching/mentoring)
Basic Considerations in Determining Pay Rates
1. Legal Requirements
- Employment/Labour Standards Act (Canada Labour Code)
- Sets minimum standards regarding pay, including minimum wage, max hours of work,
overtime
- Pay Equity Acts
- Equal pay for work of equal value performed by men and women
- Human Rights Acts
- Protects Canadians from discrimination on a number of grounds
- Canada/Quebec Pension Plan
2. Union Issues
3. Compensation Policy
4. Equity
Establishing Pay Rates
1. Determine the worth of jobs within the organization through job evaluation (to ensure
internal equity), and group jobs with similar worth into pay grades
2. Conduct a wage/salary survey of what other employers are paying for comparable jobs (to
ensure external equity)
3. Combine the job evaluation (internal) and salary survey (external) information to determine
pay rates for the jobs in the organization
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Document Summary
Total rewards: integrated package of all rewards (monetary and nonmonetary, extrinsic and intrinsic) gained by employees arising from their employment. Includes direct financial payments (wages, salaries, incentives etc. ) Includes indirect payments in form of financial benefits. Basic considerations in determining pay rates: legal requirements. Sets minimum standards regarding pay, including minimum wage, max hours of work, overtime. Equal pay for work of equal value performed by men and women. Protects canadians from discrimination on a number of grounds. Canada/quebec pension plan: union issues, compensation policy, equity. Job evaluation: a systematic comparison to determine the relative worth of jobs within a firm: job evaluation usually focuses on benchmark jobs that are critical to the firm"s operations. Benchmark job: a job that is critical to the firm"s operations or commonly found in other organizations. Compensable factors: a fundamental, compensable element of a job, such as skill, effort, responsibility, and working conditions. A method for categorizing jobs into groups.
