New trends in compensation management

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New Trends in Compensation Management (Group Mediclaim/Insurance Scheme, Personal Accident Insurance Scheme, Company Leased Accommodation,
Recreation/ATM facilities, Corporate Credit Card,
Club memberships, Cellular Phone/Laptop,
Personal Health Care, Loans, Educational Benefits, Regular Get together and other cultural programs, Wedding Day/Birthday Gift, Employee Referral Scheme, Maternity Leave, Paternity Leave, Work-life Balance, Pay Transparency, Broad banding,Variable Pay (Incentive Pay),
Flexible Benefits

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  • Flextime- allows employees to have the benefits of adjusting the time they come to work. Businesses can offer flexible services to customers, supervisors are forced to communicate more effectively. Compressed workweek- employees have the opportunity to work 4 days a week with longer work hours, usually 10hours per day. In return they are able to take one day off a week with out using vacation. Job sharing- two part-time people split the work schedule of 40 hours a week. Sometimes the days work over lap to allow for successful hand-offs and communication. Trust is very important in this role Flexible compensation - allows employees the ability to select what components that have for their compensation package. This approach with employees individual needs and preferences Telecommuting- allows employees the ability to work from home if they are able to maintain their performance. Not every job can be performed remotely. For example, Customer Service Representative. Most telecommuters are information workers. For example, programmer or recruiter. Part-time work - the employee who are students or parents with young children may need part-time schedules. The retail industry is known for having its workforce be part-time. Modified retirement- permits older workers to work fewer hours for a certain time period while maintaining their eligibility to retire
  • New trends in compensation management

    1. 1. New Trends in Compensation Management Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt) Professor Al-Qurmoshi Institute of Business Management Hyderabad
    2. 2. New Trends in Compensation Management The following are the new trends in compensation management Group Mediclaim/Insurance Scheme Personal Accident Insurance Scheme Company Leased Accommodation Recreation/ATM facilities Corporate Credit Card Club memberships
    3. 3. New Trends in Compensation Management (Contd.) Cellular Phone/Laptop Personal Health Care (Regular medical check-ups) Loans Educational Benefits (For Higher studies) Regular Get together and other cultural programs Wedding Day/Birthday Gift Employee Referral Scheme Maternity Leave Paternity Leave
    4. 4. New Trends in Compensation Management (Contd.) Work-life Balance Pay Transperancy Broad banding Variable Pay (Incentive Pay) Flexible Benefits
    5. 5. Work-life Balance Flexi-time Compressed workweek Job sharing Telecommuting Part-time work Modified retirement Employee Assistance Programme Child Care Assistance Elder Care Assistance 5
    6. 6. Pay Transperancy Employees want transparency in pay system. Now a days some organisations are using transparent pay system. Pay transparency influences employees in • Fostering trust in management • Increasing employee engagement • Encouraging discretionary efforts • Reducing turnover • Creating competitive advantage
    7. 7. Broad banding Consolidating salary grades and ranges into just a few wide levels or “bands,” each of which contains a relatively wide range of jobs and salary levels.  Wide bands provide for more flexibility in assigning workers to different job grades.  Lack of permanence in job responsibilities can be unsettling to new employees.
    8. 8. Variable Pay (Incentive Pay) Tying pay to some measure of individual, group, or organizational performance. Piecework incentive Pay-for-performance Pay-for –person Merit pay Bonuses Sales incentives Profit sharing Gain sharing Employee Stock Ownership Plan
    9. 9. Employee Stock Ownership Plan Employee Stock Ownership Plan (ESOP) is an employee benefit plan. The scheme provides employees the ownership of stocks in the company. Employers have the benefit to use the ESOPs as a tool to fetch loans from a financial institute. It also provides for tax benefits to the employers. Company makes annual contributions in a special trust set up for ESOPs.
    10. 10. Flexible Benefits Flexible benefits allow employees to pick benefits that meet their needs. The idea is to allow each employee to choose a benefit package that is individually tailored to his or her own needs and situation.
    11. 11. Flexible Benefits The three most popular type of benefit plans are: - modular plans, - core-plus options and - flexible spending accounts.
    12. 12. Modular Plans Modular plans are pre-designed packages of benefits, with each module put together to meet the needs of a specific group of employees. So a module designed for single employees with no dependents might include only essential benefits. Another, designed for single parents, might have additional life insurance, disability insurance, and expanded health coverage.
    13. 13. Core-plus Plans Core-plus plans consist of a core of essential benefits and a menu-like selection of other benefits options from which employees can select and add to the core. Typically, each employee is given “benefit credits,” which allow the “purchase” of additional benefits that uniquely meet his or her needs.
    14. 14. Flexible Spending Plans Flexible spending plans allow employees to set aside up to the amount offered in the plan to pay for particular services. It’s a convenient way, for example, for employees to pay for health-care and dental premiums. Flexible spending accounts can increase employee take-home pay because employees don’t have to pay taxes on the amount they spend out of these accounts.
    15. 15. Benefits and Perks at Google Physical Fitness Healthy Eats - a chef makes custom cook every single day Rejuvenating Dry-cleaning and alterations Car wash Unrestricted dress code DVD rental Bike repairs Haircuts Theatres House Rent allowance Transport and fuel for a specific project, amount returned after service

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