“Employee compensation (remuneration) refers to
all forms of pay or rewards going to employees
and arising from their employment”
The purpose of Compensation programs is to
attract and retain individuals, provide security
over the long time, and recognize differences in
individual jobs and responsibilities.
Impacts an employer’s ability to attract
and retain employees.
Ensure optimal levels of employee
performance in meeting the organization’s
Direct compensation in the form of wages or
Base pay (hourly, weekly, and monthly)
Incentives (fixed and sales bonuses and or
Types of Leaves & Travel Fair Facility
Indirect compensation in the form of benefits
Legally required benefits (e.g., Social Security,
Optional (e.g., group health benefits)
Pay the job (not the person)
Market-based (external equity focus)
Point factor-based (internal equity focus)
Skills / knowledge-based
Pay the person (not the job)
62% of firms used some type of skill based
pay in 2005
Compensation PackageCompensation Package
Gratuity, Death &
Requirement For Compensation System
Knowledge of employment and taxation law,
customs, environment and employment practices
of Service Sector Of Pakistan
Familiarity with SPELT fluctuations and the
effect of inflation on compensation.
A good understanding of why and when special
allowances must be supplied and which allowances
are necessary in to retain people.
Performance Is Manage at TLP
Employee Focus On Continuous Improvement
What Observer Eye Looking For?
Superior Communication Skills
Types & Weightage Of PA
Mid Year Appraisals
based, Covers Sales
Mid Year Review, for
PA In 3 Steps
Performance based on
Year Objective &
Rating the Components
Of PA Form & then
Set Grades are
Increase In Incentives
PA In 3 Steps
HODs, Supervisors, Themselves.
Through Rating, Through JDs, Through
What They Return?
Financial Increase, Vertical Growth,