Wages and salariesadministration

By: Sheeba Rehman

Compensation management

Compensation is what employees receive in exchange for their contribution to the organisation.

Total compensation =

Direct + Indirect Compensation

Base Pay Incentives Benefits

Components of employee remuneration

Remuneration

Financial Non-financial

Basic wages Incentives,Individual plans

Group plans

Fringe benefitsP.F.

Medical careAccident relief

Health and Group insurance

PerquisitesCar

Club membershipPaid holidays

Furnished houseStock option scheme

Job contextChallenging jobResponsibilities

Growth prospectsSupervision

Working conditionsJob sharing etc

Concepts of Wages

Minimum WagesFair WagesLiving wages

Objectives of compensation planningInternal equityExternal equityIndividual equityAttract talentRetain talentEnsure equityNew and desired behaviorControl costsEase of operation

Motivation and performance model

Employees setGoals and

expectations

Performance Is rewarded

Employee considersEquity of

Performance rewards

Feedback to

employees

Rewards aregiven

Employee sets new goals and

Expectations based on prior experiences

Importance of an ideal remuneration systemDesire for performance more pay strikes

grievancessearch for options absenteeism

turnoverPay dissatisfaction

lower job psychologicalattractiveness dissatisfaction withdrawalof jobs absenteeism visits to the

Doctorpoor mentalhealth

Influencing factors of Remuneration

Remuneration

External Internal

Labour MarketCost of LivingLabour UnionsGovt. LegislationsSocietyEconomy

Business StrategyJob evaluation & PAThe Employee

Devising a remuneration plan

Job Description

Job Evaluation

Job Hierarchy

Pay Survey

Pricing Jobs

The Development of a wage trend- line

100 200 500 700 800600300 400 1000900

10

9

8

7

6

5

4

Key Job A

New key Job B

Wage-trend Line

Point Values

Wages orsalaries

Challenges of remuneration

Remuneration

Skills-basedpay

Employee participation

Comparableworth

Paysecrecy

Salary reviews

Wages Policy in India

Payment of Wages Act, 1936Industrial Dispute Act, 1947Minimum Wages Act, 1948Equal remuneration Act, 1976Payment of Bonus Act, 1965Wage Board