Employee input helps QUALCOMM select the best total rewards investments
Employee input helps QUALCOMM select the best total rewards investments
Reichel D.A., Blain N.Journal of Organizational Excellence (USA), Winter 2005 Vol. 25 No. 1, Start page: 35 (12 pages)
Purpose – To report on QUALCOMM’s re-evaluation of its Total Rewards compensation portfolio. Design/methodology/approach – States that QUALCOMM has appeared on Fortune’s “Best places to work” list for seven consecutive years. Explains that in addition to compensation components typically offered by most major corporations, the company differentiates itself in the labour market through attractive health care benefits and broad-based use of stock options. Observes however that it wished to re-evaluate these benefits because of rising health care costs and regulatory changes in the accounting treatment of stock options. Describes the strategic role of total rewards at QUALCOMM and explains the methodology adopted to evaluate the return on investments in signature health care programmes and assess the impact of potential changes. Discusses the collection of employee input using an online survey and provides a basic primer on conjoint analysis. Findings – Shows how QUALCOMM’s investment in Total Rewards has enhanced its ability to attract and retain a highly marketable workforce. Evaluates the incremental investment to achieve market position; the advantage gained from market position; the economic value attributable to the Total Rewards health care programmes; and the return on investment. Discusses opportunities to invest in some benefits and cut others and the business context for managing these changes. Presents sample design scenarios, including a utility-optimizing, cost-neutral strategy and a utility-neutral, cost-saving strategy. Originality/value – Demonstrates the use of rigorous methodology in helping one company evaluate its employee compensation package and the impact of possible design changes.Style: Case study35AC880
Keywords: Benefits management, QUALCOMM, Recruitment, Retention, Case study
