Compensation
TEAM 10:
Panu Kurkela
Jouko Kyrola
Simo Nieminen
Martijn Verbree
Compensation Objectives
•Match Organizational Goals
•Employee Motivation
•Retain most talented people
•Reward Past Performance
•Improve Productivity
•Maintain Competitiveness
Compensation Policies
•Competitive Base Salary
•Annual Merit Pay based on Excellent Performance
•Incentives
•Indirect Compensation
Government Regulations
•Mandatory
- Minimum Wage
- Occupational Health Service
- Retirement Benefits
- Maternity Benefits
- Insurance (accidents, Unemployment)
Opportunities
•Changed Working Time Regulations
•Local Employee Agreements Allowed
•Voluntary Retirement Insurance
•Investment Funding Possibilities
•Local Authorities Agreements
Factors Affecting Working Time
•Eight Hours per Day
•37.5 Hours per Week
•Two First Overtime Hours +50%
•Following Overtime hours +100%
•Total Amount of Overtime Hours per year is limited
•Possibility for Local Agreements
Base SalariesIn FIM, $ 1 = FIM 5.5
CEO 700.000
Vice Presidents 400.000
Area Managers 300.000
Facility Managers 220.000
Assistant Facility Manager 150.000
Salary Range: (+/- 25%)
Compensation ConstraintsCEO
VP’s
AM’s
FM’s
AFM’s
Base Merit Bonuses Stock Indirect
Salary Options Compensation
Incentives
•Merits
-Allocation by Superior based on Performance Appraisal
•Bonuses
-Max 20% of Base Salary
-Goals and Bonus Set by Superior
-Bonuses are Based on Yearly Budget
•Stock Options
- Goals Set by Chicago HQ
- Evaluation by Chicago HQ, Based on Appraisal
Management Goals
•Customer Satisfaction
•Productivity
•Growth
•Market Share
•Sales Volume
•Profit*
Indirect Compensation
•Retirement Insurance
•Flexible Working Hours
•Company Car, Petrol, phone
•Self Development Program
•Relocation Assistance
Thank you...