Question

Identify an article in a popular, business-oriented publication (e.g. Wall Street Journal, Fast Company, Fortune, Wired, etc.) that illustrates how a company is successfully encouraging employee productivity and performance through their total compensation and rewards strategy. What innovative strategies are they using to really drive employee performance? Please provide a full citation and link to the article so that your classmates can also benefit from what you learned.

Answer 1

Hasbro is a global play and entertainment company.   They want to create the best play experiences. They start from home by “ creating the best place you have worked for” and giving employees to spend maximum quality time with their families.

The benefits are to ensure employee works 4.5 days working week and get an off on their birthdays. They feel employees contribute more if they feel the employee and workplace environment values their contribution. In 2016 they reviewed their benefit offerings and aggressively sought feedback and survey on their practices and ways to improve employee benefits.

They now offer 6 months of maternity leave of which 16 weeks is paid leave and 2 weeks paid paternal leave and time off for prenatal checkups and medical reviews.

Further, they offer compensation as follows for employees who contribute 30 hours a week by making it a fun place to work and offer comprehensive benefits and services:

• Healthcare plans, dental, vision and medical options
• Saving and spending account including health saving account
• Retirement benefits
• Provision of short term and long term disability
• Pay for performance is an integral part of the package
• Recognize and reward employees for their contribution to Hasbro’s success.
• Through the year, the company rewards and celebrates companies success through events and awards.
• Employees get recognition after completing 5 years in the organization through a service award gift program. In 2016, 260 employees celebrated the milestone awards.
• They have weighted targets with incentives and awards
• Individual performance is rewarded and further linked to profit centers revenue generation
• Bonus is 25% individual performance and 75% overall company’s performance in the corporate office and 60:40 in business units. Where 60% is on business unit performance and 40% on overall company's performance.
• Minimum 80% performance is essential but each subsequent 1% increase will benefit in 2% of awards. After 100% achievement subsequent 1% will get 3% reward.

To sum it up they have efficiently linked productivity and employee performance.

Reference:

Hasbro Inc-Management Incentive plan