Employee remuneration
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Employee remuneration

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Employee remuneration Employee remuneration Presentation Transcript

  • HRDEMPLOYEE REMUNERATION
  • WAGE AND SALARY ADMINISTRATION• Refers to the establishment and implementation of sound policies and practices of employee compensation• Denotes the process of managing a company’s compensation program
  • OBJECTIVES OF WAGE AND SALARY ADMINISTRATION• To establish a fair and equitable compensation offering similar pay for similar work• To attract competent and qualified personnel• To retain the present employees• To keep such costs in line with the ability to pay• To improve motivation and morale • Contd…
  • OBJECTIVES OF WAGE AND SALARY ADMINISTRATION Contd…• To improve union management relations• To project a good image of the company• To comply with legal needs relating to wages and salaries• To establish job sequences and lines of promotion wherever applicable• To minimize chances of favoritism
  • PRINCIPLES OF WAGE AND SALARY ADMINISTRATION• Interest of all parties concerned viz. employer, employees, consumers and the society to be kept in mind• Flexible to changes in internal and external conditions of the organization• Pay differences to be based on skill, responsibility, efforts and mental and physical requirements • Contd…
  • PRINCIPLES OF WAGE AND SALARY ADMINISTRATION Contd…• Be consistent with overall organizational plans and programs• To be in conformity with social and economic objectives of the country like attainment of equality in income distribution and controlling inflation, etc.• Workers should be associated as far as possible • Contd….
  • PRINCIPLES OF WAGE AND SALARY ADMINISTRATION Contd…• To be reasonably in line with the prevailing wages and salaries in the labor market• Workers should receive guaranteed minimum wages• To pay promptly and correctly• To be reviewed and revised periodically
  • CONCEPTS OF WAGES• Minimum wages• Fair wages• Living wages
  • MINIMUM WAGE• To provide not merely for bare sustenance of life but also for the preservation of the efficiency of the workers• Minimum wage must provide for some measure of cost of education, medical requirements and amenities• In India, determined mainly under the provision of Minimum Wages Act, 1948
  • FAIR WAGE• In a narrow sense, wage is fair if it is equal to the rate prevailing in the same trade and in the neighborhood for similar work• In a wider sense, it will be fair if it is equal to the predominant rate for similar work throughout the country
  • LIVING WAGE• This is higher than fair wage• Enables the wage earner to provide for himself and his family not only the bare necessities like food, clothing and shelter but a frugal comport to meet cost of eduction, medical, social needs, misfortunes and old age• Varies from country to country• Tribunals, awards and wage boards play major role in fair wage fixation
  • COMPONENTS OF WAGE AND SALARY• Financial• Non-financial
  • WAGES AND SALARIES• Hourly rates of pay• Monthly rate of pay• Annual increments• Differs from employee to employee
  • INCENTIVES• Paid additionally• Payment by results• Individual incentive scheme• Group incentive scheme
  • FRINGE BENEFITS• PF• Gratuity• Medical• Accident relief• Group insurance• Canteen facility• Uniform• Recreation
  • PERQUISITES• Allowed to executives• Company car• Club membership;• Paid holidays• Furnished house• Furniture• Stock option
  • NON MONETARY BENEFITS• Challenging job• Responsibilities• Recognition of merit• Growth prospects• Comfortable working conditions• Flexi time
  • FACTORS INFLUENCING WAGES AND SALARIES• EXTERNAL FACTORS• Demand and Supply• Cost of Living• Trade Unions’ Bargaining Power• Government Legislation• Psychological and Social Factors• Economy• Technological Development• Prevailing Market Rates
  • FACTORS INFLUENCING WAGES AND SALARIES Contd…• INTERNAL FACTORS• Ability to pay• Job requirements• Management Strategy• Employee related• Performance• Productivity• Seniority• Experience• Potential• Luck