compensation managaement
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PRESENTATION ON:PRESENTATION ON:
COMPENSATIONCOMPENSATIONMANAGEMENTMANAGEMENT
PRESENTED BY:PRESENTED BY:GROUP NUMBERGROUP NUMBER-- 0808
INDERPREETINDERPREET SINGHSINGH-- 022022KAUSHIK BOSEKAUSHIK BOSE--040040
PANKAJ WADHAVANPANKAJ WADHAVAN--5757
SAKSHI SIDANASAKSHI SIDANA--076076
VIDUSHEE DUTTAVIDUSHEE DUTTA--097097
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JOB EVALUATIONJOB EVALUATION
Job Evaluation is the evaluation or rating of jobs todetermine their position in the job hierarchy. The
evaluation may be achieved through assignment of
points or use of some other systematic method
for essential requirements such as skill, experience
and responsibility.
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Features of Job EvaluationFeatures of Job Evaluation
It is a systematic process
Analyze and evaluate jobs
Determine the relative worth of each jobInfluence on employee morale and
satisfaction
Primary objective of job evaluation
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Techniques of Job EvaluationTechniques of Job Evaluation
Non-quantitative techniques:
Ranking
Job classification or job grading
Quantitative Methods:
Point rating method
Factor Comparison method
Decision Band Method
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Wage and Salary AdministrationWage and Salary Administration
Base wages and salaries:
hourly, weekly and monthly pay
foundation of the employee pay structure
total compensation calculated after these are
fixed
Compensation Administration
compensating the employees in fair manner maintaining the principle of equity
matching employee expectancy
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Concepts of different wagesConcepts of different wages
Minimum wages
Fair Wage
Living Wage
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Basic Wage plansBasic Wage plans
Time wage plan
Piece Rate-
oTaylor's differential piece rate system
oMerricks multiple piece rate
Skill Based Pay
Merit Based Pay
Competency based pay
Broad Banding
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Variable CompensationVariable Compensation
Designed to pay employees in accordance with their
performance .
Designed to motivate individuals and groups
Helps in improving the performance of the employees
Examples: Production incentives, profit sharing, gain
sharing, bonus, etc.
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Executive CompensationExecutive Compensation
It is the compensation paid to the top
Executives of an Organization.
It is so designed to attract and retain
their chief executives
Competence, expertise and
temperamental ability to lead an
organization
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Choices in Designing aChoices in Designing a
Compensation SystemCompensation SystemCompensation System should be in tune withthe culture and unique character of the firm
Allow a firm to achieve its strategic goals
Following are the different compensationsystems
Internal and External Pay
Fixed Vs. Variable Pay
Performance Vs. Membership
Job Vs. Individual Pay
Below Market and Above Market Compensation
Open Vs. Secret Pay
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CONCEPT OF REWARDSCONCEPT OF REWARDS
What are rewards?
Can be extrinsic(tangible-promotion orbonus) or intrinsic(informal recognition
etc.),financial or non financialRewards results in:
Improved job satisfaction
Increased loyalty and commitment of theemployees
Improved performance
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So What are incentives?So What are incentives?
Reward over and above the base
wages/salaries(ESOPs)
Incentive plans:Short term :
Halsey plan(standard output fixed for a prescribed time)
Rowan plan(minimum wage guaranteed)
Progressive bonusLong term : Annual bonus,Profit sharing,Esops etc.
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Examples from corporate worldExamples from corporate world
AccentureAccentureCash compensation:
rewards in your paycheck, including base salary,variable pay (bonuses and incentives), overtime payand any other cash payments you may earn
Non-cash compensation: Accenture equityacquired through share option grants anddiscounted share purchases
In the Consulting and Enterprise workforces,executives are eligible for the Global Variable Pay
program, which is a cash payment plan linked toboth company and individual performance
CapgeminiCapgeminiCash compensation
Deferred or incentive compensation
Benefits
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Flexible benefit plan - FBP
Flexible Benefits Plan empowers you to make responsible choices in order to derive maximum value for yourCompensation
HRA
Leave Travel Allowance (LTA)
Conveyance Allowance or Fuel expense and Vehicle maintenance Reimbursement
Driver's Salary
Medical Expense Reimbursement
Program What it is Who gets it
Base Pay Regular pay; your "annual salary" All employees
Variable Pay Annual "bonus" depending on
company, group and individual
performance criteria
All non-incentive plan employees
are eligible; actual pay will vary
based on performance of the
individual and his/her unit
Commission and Incentive Pay For sales employees, portion of
total compensation varies on
specific sales goals and objectives
Sales employees and executives
on incentive and commission
programs
Stock Options Recipients are granted the
"option" to buy stock at a locked in
price
Program is very limited and
focuses on retention by awarding
options to key employees in
critical job categories
Awards and Recognition Various individual and group
awards designed to recognize very
specific and extraordinary
accomplishments
All employees are eligible
depending on the nature of the
award and any relevant
restrictions
IBMIBM
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Intel's goal is to pay above-average total cash compensation
Base Pay
In addition, based on job and function, employees may also be eligible forCommission :base salary +commission-eligible employees' cash compensation
Shift and/or overtime premiums : 24 hour-a-day operations seven days a week
Overtime Premiums: overtime is paid according to the laws that govern the site
in which the employee works.
StockDelivering stock is an important part of our employees overall pay and benefits
packageRestricted Stock Units (RSUs) or, depending on grade level
BonusEmployee Cash Bonus Plan
Employee Bonus
Benefits
Medical BenefitsRetirement
Life and Accident Insurance
Paid Time Off
Other Benefits
Other Benefits:
Employee Assistance ProgramRecreation
IntelIntel
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THANKYOU