Establishing Rewards, Pay Plans, and Benefits: Comprehensive Guide for Employers

1. Establishing Rewards, Pay Plans, and Employee Benefits By Daniel Damaris Novarianto S.

2. Rewards What is the rewards?

3. Rewards (cont.)

4. 1 2 3 Ordering Method or Job Ranking Classification Method or Grade Level Point Method Job Evaluation Methods

5. The Example of Job Ranking

6. The Example of Classification Method

7. The Example of Point Method

8. The Example of Point Method (cont.)

9. Compensation Surveys Wages Curves Or Wage Structure Establishing the Pay Structure

10. The Example of Waged Curves from Internal Based

11. The Example of Waged Curves from External Based

12. The Example of Plotting both External and Internal Wage Curves

13. Establishing the Rate Ranges of Wage Curves

14. The Example of Wage Structure

15. Determining the Wage Structure from External Factor • Geographic Factors • Labor Supply • Competition of Wages • Cost of Living • Collective Bargaining • Communicating with Employee

16. Incentive Compensation Plans • Individual Incentives • Group Incentives • Organization-Wide Incentives • Scanlon Plan • IMPROSHARE

17. Paying for Performance 2 Basis Broad Branding Competency Based Compensation

18. Executive Compensation Program • Salaries of Top Management • Supplemental Financial Compensation • Supplemental Non-Financial Compensation: • Perquisities/Perks: the payment of life insurance premiums, club memberships, company automobiles, liberal expense accounts, supplemental disability insurance, supplemental retirement accounts, postretirement consulting contracts, and personal financial, tax, and legal counseling • Golden Parachute

19. The International Compensation Issue Base Pay 1 Differentials 2 Incentives 3 Assistance Program 4

20. Relationship Between Stress and Job Performance

21. The Stress Model

22. Employee Benefits

23. Health Insurance • Traditional Health Insurance: • Hospitalization: pays for hospital stays with limits, usually 120 days • Medical/Surgical: pays for services of doctors, procedures, nursing care, drugs,and hospital services such as anesthesia, tests, lab work, etc. • Major Medical: pays for major illnesses and their associated expenses such asoxygen, home care, and extended hospital stays over 120 days

24. Health Insurance (cont.) • Health Maintenance Organizations (HMOs) • Provides comprehensive health servicesfor a flat fee • Preferred Provider Organizations (PPOs) • Organization that requires using specific physicians and health-care facilities to contain the rising costs of health care

25. Health Insurance (cont.) • Point-of-Service (POS)Health care plan that includes primary care physicians but allows greater flexibility for using services out of the network • Consumer Driven Health Plans (CDHP) Combines a health plan with a high deductible with a health savings account that the insured uses to pay for deductibles and medical care

26. Health Insurance (cont.) • Consolidated Omnibus Budget Reconciliation Act (COBRA)Provides for continued employee benefits up to three years after an employee leaves a job

27. Thank You !