1 / 17

Compensation Need Assessment

Compensation Need Assessment. Group Members: Aamir Mohammad Syed Wasi Abbas Talha Ahmed Hoban Syed Haris Hussain Sumair Patel . Compensation.

hashim-davis
Download Presentation

Compensation Need Assessment

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Compensation Need Assessment Group Members: Aamir Mohammad SyedWasiAbbas Talha Ahmed Hoban SyedHarisHussain Sumair Patel

  2. Compensation Compensation assessment is an integral part of the management of the organization. Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. It may achieve several purposes assisting in recruitment, job performance, and job satisfaction. It is the reward received by an employee in return for his/her contribution to the organization.

  3. Strategic Compensation Planning The three important aspect of strategic compensation planning are: Linking Compensation to the Organizational Objectives. The Pay Performance Standards. Motivating Employees through Compensation.

  4. Motivating Employee through Compensation Equity Theory Central to the theory is the role of perception in the motivation and the fact that individual make compare its means that individual from the ratio of their inputs of their abilities, scales, and experience in a situation to their outcomes.(Salary, benefits) in that situation.

  5. MY INPUTS /OUTPUTS RATIO MY INPUTS /OUTPUTS RATIO COMPARISION PERSONS INPUT /OUTPUT RATIO COMPARISION PERSONS INPUT /OUTPUT RATIO Relationship Between Pay Equity & Motivation COMPARISION PERSONS INPUT /OUTPUT RATIO MY INPUTS /OUTPUTS RATIO DOING SAME & RECEIVING SAME DOING LESS & RECEIVING MORE DOING MORE & RECEIVING LESS

  6. Factors Affecting The Wage mix INTERNAL FACTORS EXTERNAL FACTORS WAGE MIX • Compensation Strategy of organization • Worth of job • Employees relative worth • Employers ability to pay • Condition of the labor market • Area wage rates • Cost of living • Collective bargaining • Legal requirements

  7. Steps in Establishing Pay Rates The process of establishing pay rates while ensuring external, internal and procedural consist of five steps: Salary survey Job evaluation Pay grades Wave curves Pay rates

  8. Components Of Compensation Basic wages: Wages represent hourly rates of pay, and salary refers to the monthly rate of pay, irrespective of the number of hours put in by the employee Dearness allowance The payment of dearness allowance facilitates employees and workers to face the price increase or inflation of prices of goods and services consumed by them. The dearness allowance which may be a fixed percentage on the basic wage.

  9. Components Of Compensation(cont) • Incentives Incentives are paid in addition to wages and salaries and are also called ‘payments by results’. Incentives depend upon productivity, sales, profit, or cost reduction efforts. • Bonus The bonus can be paid in different ways. It can be fixed percentage on the basic wage paid annually or in proportion to the profitability

  10. Components Of Compensation(cont) • Non-monetary benefits These benefits give psychological satisfaction to employees even when financial benefit is not available such as: • Competent supervision, and • Job sharing and flexi-time. • Commissions Commission to Managers and employees may be based on the sales revenue or profits of the company. It is always a fixed percentage on the target achieved.

  11. Components Of Compensation(cont) • Piece rate wages Piece rate wages are prevalent in the manufacturing wages. The laborers are paid wages for each of the Quantity produced by them. The gross earnings of the labor would be equivalent to number of goods produced by them. • Fringe benefits Fringe benefits constitute indirect compensation as they are usually extended as a condition of employment and not directly related to performance of concerned employee.

  12. Salary Compression • Salary compression which means longer term employees salary is lower than those of workers entering the firm today which is creating inflation.

  13. Competence Based Pay Skill base pay or knowledge base pay. Fundamental change in the attitude of management. Greater productivity increase employee learning Improve commitment to work.

  14. 3P’s Compensation Management Paying for position Paying for person Paying for performance

  15. Pricing Managerial and Professional Job Basic pay Short term incentives Long term incentives Executive benefits

  16. Conclusion

More Related