Topic 8: Employee Compensation and Benefits

1. Employee Benefits • 3770 Beardshear Hall Human Resource Services Topic 8:Employee Compensation and Benefits

2. COMPENSATION? • “Something, typically money, awarded to someone in recognition of his/her work done to the organisation”

3. Employee Benefits • Hall Goals of Compensation Plans Employers are able to attract and retain employees who will contribute to the organization’s success Employees feel they are compensated/rewarded fairly for their efforts and contributions to an organization’s success

4. Employee Benefits • 3770 Beardshear Hall How to satisfy employees? Human Resource Services Supportive Corporate Culture Executive Sponsorship Employee Satisfaction • Rewards • Bonus • Salary Increases • Promotions • Equity Offerings • Awards • Recognition • New job assignments • Benefits • Health Plans • Retirement Plans • Vacation/ time off • Paid Training • Working Hours • Salary • Pay • Overtime

5. The Employment Act • Lays down the requirements concerning the payment of wages.

6. Hall What Factors Determine Pay? Seniority Increase in the cost of living Performance Degree of skills

7. TEAM ACTIVITY (5%) • Your business is in Jakarta & Vietnam are to run in 4 months time. • As the HR Manager in KL, you need to think of a competitive compensation package for the; • CEO • HR Manager • Marketing Manager • Interns • For each branch.

8. Employee Benefits • 3770 Beardshear Hall Human Resource Services Compensation Structure Example

9. Employee Benefits • 3770 Beardshear Hall Human Resource Services Compensation Structure: Example

10. Employee Benefits • 3770 Beardshear Hall Human Resource Services Rewards/Recognition Job Classifications Compensation Structure Compensation Philosophy

11. Employee Benefits Core vs. Non-Core Benefits

12. Employee Benefits • 3770 Beardshear Hall Health Benefits General types of health coverage Medical Prescription Drugs Dental Vision

13. Employee Benefits • Hall Wellness Programs Many employers are starting to see the value from incorporating wellness initiatives into their work places disease management health risk assessments fitness programs on-site clinics and pharmacies

14. Employee Benefits • 3770 Beardshear Hall Welfare Benefits Provide safety and monetary security beyond health Typical benefits – such as life insurance, etc.

15. Employee Benefits • 3770 Beardshear Hall Human Resource Services Vacation May be provided under separate program or combined under a PTO (paid time off) plan with sick days May be earned monthly or provided on an annual basis Many employers require all vacation to be used in a year – no carryover If carryover allowed, typically subject to an accrued maximum number of days or hours

16. Employee Benefits • 3770 Beardshear Hall Human Resource Services Retirement Benefits Defined Benefit Plans (traditional Pension) Based on a formula that determines a future benefit Employee Provident Funds (EPF)

17. Employee Benefits • 3770 Beardshear Hall Human Resource Services Other Voluntary Benefits Offered as optional benefits – typically employee pays full cost Voluntary benefit programs typically offered at a discount price resulting from group purchasing power Employer may offer the option of payroll deduction Examples are auto/homeowners insurance, pet insurance, computer purchase discounts

18. Working Overtime • What is overtime? • The Employment Act states that no worker can be required by his employer to work more than 8 hours per day, or 48 hours per week. • In this happens  OT

19. Reasons why employers conduct OT • A temporary shortage of workers • A temporary increase in workload • Low productivity of workers • Difficulty in recruiting additional workers.

20. How to calculate OT rates? • OT on an ordinary working day = 1.5 times the normal hourly rate • OT on a rest day = 2 times the normal hourly rate • OT on a public holiday = 3 time the normal hourly rate.

21. Employee Benefits • 3770 Beardshear Hall Human Resource Services Questions??