Video Case Study: Incentive Rewards at Bright Horizons

Watch the following video about Bright Horizons, and then use your knowledge of human resources and executive compensation to answer the questions that follow.

...attracts people that are really mission oriented in all honesty. Any executive in this company could earn more in another industry. It's, it's really not why we're here. We certainly, you certainly as an exec, you have, care about a certain level of compensation, but we can all earn more money in other fields. There's no question about that. So for, at the executive level, a big part of our compensation is really more on equity, long-term equity based on the performance of the company. Base pay is generally below the market. >> Dan Henry: I think we all, we all have this saying here, if you're not caring for children, you're caring for someone that is. Hi. I'm Dan Henry, and I'm the Chief Human Resources Officer for Bright Horizons. We could differentiate, and in many organizations, there, there are packages for executives, and there are packages for people who are working quote, unquote on the front line. We don't do that. So we annually survey the market. We try to ensure that we're, we're paying for, particularly for our teachers, at the higher end of the market, and that we're very competitively priced, but, again, bearing in mind that parents help to afford teacher pay. So, so it's always balancing what is an affordable rate of tuition for the marketplace with what we can afford to pay in that marketplace. What, what we don't have in our, in our executive packages, mine included, are perquisites. We just don't take them because, again, we are, we're an organization that is familial and has a sense when it comes to, compensation that we need to be reasonable at every level, including the executive level. Yeah. Our reward structure as it relates to sustaining a great place to work is probably driven less by compensation than it is by culture, although the two have a role to play together. So, so we do have compensation rewards that recognize differentiated levels of performance as for as, for an example, we, we annually recognize one teacher per division. We call them our Janice Hill Award winners. We just did this a week or so ago. Each of those teachers receives a check for a thousand dollars for their exemplary contribution. A few years ago, we recognized that we have some directors who, these are our front-line leaders leading these, these centres who've been in their roles, at the time I think it was ten years, in their roles as directors, and we, we recognized them by giving them all-expense paid trips to go visit the European operation and tour Europe. Many of them hadn't ever seen Europe. It was a chance for them to share program ideas, to share how we're making quality outcomes come to life for children in Europe and how we do that in the U.S., and it was also no, no small form or recognition for this group of directors who, frankly, I think valued that more than they would have valued small a raise at that point. And so we use a wide range of vehicles. We use direct base pay. We use bonuses where we can. We use incentives where we can. We use a profit-sharing plan where we can, and we have a limited-option plan as well. So very, very broad range of things that we do, but then we also make these non-traditional investments in people in other ways.

Dan Henry, chief human resources officer for Bright Horizons, says that they survey the market annually to make sure they are competitively priced. Given this comment, which of these would coincide with Bright Horizon's approach to executive compensation?

A.) They use a technique called competitive benchmarking.

B.) They grant additional options to executives.

C.) They are focused on individual contributions and benefits.

D.) They use a balanced customer satisfaction scale for determining bonuses.

Which of these types of compensation are provided to employees at Bright Horizons? Check all that apply.

A.) short-term incentives

B.) long-term incentives

C.) base salary

D.) perks