Rewarding - Compensation

8/6/2019 Rewarding - Compensation

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Rewarding Employees Compensation Policy Promotions

Compensation Includes Direct Cash payments , Indirect Payments in the form

Of employee benefits and incentives to motivate employees to strive for high

Levels of productivity Cascio

Components :-

Wage /Salary Time based payment

Incentives :- Additional payment linked to Productivity , may be individual or

Group based and may relate to Improvement in Production or Reduction in Costs

Fringe Benefits :- Provident Fund, Gratuity, Insurance, Uniforms , Canteen ,BusFacility etc.

Perquisites :- Staff based payment e.g. Fuel Allowance, White Goods ,

Others :- Lunch Coupons /Tickets (Sodexho /Meal Ticket), Annual Gift,

Reimbursement of Medical Expenses , LTA

Beach :- Wage and salary administration refers to the establishment andimplementation of sound policies and practices of employee compensation and

include Job Evaluation, Surveys of Wages and Salaries , Analysis of relevant

organisational problems , development & maintenance of Wage Structure ,

establishing rules for administering wages, wage payments , incentives, profit

Sharing, Wage Changes and adjustment , supplementary payments , control of

Compensation cost and other costs .


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Stages in Compensation Management

1. Conduct/Acquire Salary Survey

This involves acquiring of information on bench Marked Jobs across the companies

where salaries are compared for similar jobs and data is widely available

2. Evaluate Jobs

Pertains to Systematic Comparison amongst jobs to consider RELATIVE WORTH .

Aspects considered include Skills, Efforts, Responsibility, Working Conditions and

risks involved.* Methods include

Ranking Based on the Job Analysis , Job Description are prepared and based o

a compensable Factor (e.g. Job Difficulty ) ranks are assigned .If need be rankscan be Clustered /Averaged

Job Classification Job description are the basis , however jobs can be Classified

or Graded and across the organisation in spite of different Jobs

these could be Favourably Graded *e.g. Helper Vs Gen Attendant H 1, Gen Asst

Vs Clerk Vs Receptionist S1, Mechanic Vs Security Inspector Vs Driver etc T

. Point Method A quantitative Method where compensable factors and their

relevant presence in each Job is considered . E.g. Responsibility can have 5

degrees . Compare Cashier with a General Clerk. The Totalling of points

provides a Value

Factor Comparison A progression of the Ranking Method , every single

Compensable factor is assessed for each job and a cluster prepared. Data is morevened out


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Computerised Job Evaluation concerns quantitative Job Evaluation by

assistance of computers e.g. simplifying Job analysis based on Data entries

and assessing response on Comparable factor questionnaire etc. Method is

statistical

Paired Comparison Here jobs are compared to another for arriving at a Ranking

Though good for small numbers complex for large samples

3. Grouping Jobs into Pay Grade

arrive at Wage Curve

Fine Tune the assessments/ Pay Rates

Create Broad Brands, Plot as Cluster in Broad Brands

4. Determine Pay Grades

Benchmarking Jobs This includes such jobs that are

1. Stable over time and are well known e.g. Project manager, Cashier, Technician

2. The job is common across a number of different emploers/industry

3. A large number of employees are employed in this job


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Documents

Rewarding - Compensation