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Issue of Equal Employment Opportunity & Issue in Compensation policy


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Issue of Equal Employment Opportunity & Issue in Compensation policy

  1. 1. Topic: Issue of EEO & Issue in Compensation policy Guidance By: Majmudar Sir Prepared By: Jay Raval Submitted To: Department of Business Administration, Bhavnagar University Bhavnagar Subject: I.H.P.P
  2. 2. 22 Learning Objectives  Meaning of EEO  Briefly review and discuss major anti-discrimination laws.  Increase awareness of workplace harassment,  Learn techniques for identifying and preventing workplace discrimination, harassment, and retaliation.
  3. 3. EEO  Equal Employment Opportunity means equal access to jobs and benefits and services for all employees and prospective employees in the workplace.  EEO aims to ensure fair and equitable outcomes in all areas of employment which relate to recruitment, selection, access to information, supervision and management. 3
  4. 4. Discrimination  Direct discrimination is any action that specifically excludes a person or a group of people from a benefit or opportunity, or significantly reduces their chances of obtaining it, because a personal characteristic irrelevant to the situation is applied as a barrier.  Indirect, covert, or systemic discrimination are rules, practices and decisions that appear neutral, but in fact significantly reduce the chance of an individual `from obtaining a benefit or opportunity.  For example, an employer who says they need a person over 180cm tall to do a job may discriminate against women and some ethnic groups who are less likely to be this height. 4
  5. 5. 55 Anti-Discrimination Laws  Title VII of the Civil Rights Act of 1964 (Title VII):  Is the major law prohibiting discrimination in employment.  Title VII prohibits discrimination based on race, Gender, color, religion, national origin, and retaliation.  The Equal Pay Act of 1963 (EPA):  Protects men and women who perform substantially equal work from Gender-based wage discrimination.  The Age Discrimination In Employment Act of 1967 (ADEA):  Protects employees and job applicants who are 40 years of age or older from employment discrimination based on age.
  6. 6. 66 Anti-Discrimination Laws  The Rehabilitation Act of 1973:  Applicable sections prohibit discrimination in employment against qualified individuals with disabilities.  Also, requires employers to provide “reasonable accommodation” to qualified individuals with disabilities who are employees or applicants for employment.  The Civil Rights Act of 1991:  Provides the right to a jury trial and monetary damages in cases of employment discrimination.  Genetic Information Nondiscrimination Act of 2008
  7. 7. 77 Anti-Discrimination Laws  The NO FEAR ACT (became effective on October 1, 2003):  Prohibits discrimination and retaliation against workers for participating in the EEO process or whistle-blower activities.  Requires agencies to train employees and post statistical data on EEO complaints on agency’s public website.
  8. 8. 88 Workplace Harassment Defined  Harassment is any unwelcome verbal or physical conduct based on race, color, religion, national origin, age, disability or retaliation that is sufficiently offensive to alter the conditions of the victim’s employment. This standard is met when:  Workplace harassment  Psychological harassment  Racial harassment  Religious harassment
  9. 9. 99 Way of Harassment  Verbal (unwelcome comments, yelling, offensive jokes or stories);  Visual (offensive pictures, photos, cartoons, posters, calendars, magazines or objects);  Physical (unwelcome touching, hugging, stroking, or suggestive gestures); and  Written (unwelcome letters, notes or e-mails of a personal nature).
  10. 10. EEO policy in various company 10
  11. 11. EEOC headquarter 11 1-800-669-4000 •The Commission has filed nearly 90 lawsuits alleging religious and national origin discrimination involving the Muslim, Sikh, Arab, Middle Eastern and South Asian communities, many of which involved harassment. EEOC carry out their work through their headquarters offices in Washington, D.C. and through 53 field offices serving every part of the nation.
  12. 12. EEOC will continue their efforts to eliminate discrimination in the workplace by enforcing federal anti-discrimination laws and educating employers and employees about their rights and responsibilities. 12
  13. 13. Issues in compensation Policy 13
  14. 14. Compensation Policy  Compensation is a systematic approach of providing monetary value to employees in exchange for work performed. It may be help to achieve several purposes, such as recruitment, job performance and job satisfaction. 14
  15. 15. Types of compensation 15 Types of compensation Description about each type Direct compensation Money, popularly known as basic salary or wage, (gross pay), overtime work and holiday premiums, bonus base on performance, profit sharing etc. Indirect compensation Life, accident, health insurance, pension, pay for illness. Non-monetary compensation It does not include tangible value. This includes job security, flexible hours, and opportunity for growth, praise & recognition, task enjoyment, friendship etc.
  16. 16. Graphic OrganizerGraphic Organizer Chapter 8 • Beginning a New Job Succeeding in the World of Work INCENTIVE PLANS •Bonuses •Stock options •Profit sharing BENEFITS •Health insurance •Paid vacations PAYMENT •Salary •Hourly wages •Retirement plan •Convenience benefits •Overtime •Commission Employee CompensationEmployee Compensation
  17. 17. Analysed items 2004 House Rent Allowance 97 Gratuity 95 Housing Loan 91 Medical reimbursement/ allowance 90 Insurance 89 Leave Travel allowance 87 Variable Bonus 85 Conveyance allowance 84 Superannuation 61 Car Loan 54 Social/ Sports club membership 51 Incentive/ Sales Commission 44 Medical check-up 39 Fixed Bonus 33 Other allowances 26 Flexible benefit plan 16 Companies providing benefit (%)
  18. 18. Overview of Employee Benefit Scenario In India Employee CompensationEmployee CompensationEmployee CompensationEmployee Compensation SalarySalary AllowancesAllowances & Bonus& Bonus EmployeeEmployee BenefitsBenefits
  19. 19. Overview of Employee Benefit Scenario In India Employee BenefitsEmployee Benefits MandatorMandator yy VoluntarVoluntar yy ProvidentProvident FundFund GratuityGratuity PersonalPersonal AccidentAccident MediclaimMediclaim LeaveLeave EncashmentEncashment LifeLife InsuranceInsurance Super-Super- annuationannuation
  20. 20. Employee Benefits  Why benefits?  Types of benefits Legally required benefits Security and retirement benefits Health coverage
  21. 21. Why Benefits?  Legal requirements  Employee attraction and retention  Non-taxable compensation to employee  Employer can often purchase at more favorable rate  Employee morale, well-being
  22. 22. Legally Required Benefits  Workers’ compensation  Social security  Overtime Pay  Continuation of health coverage
  23. 23. Workers’ Compensation: Coverage  Paid by employer  What is covered:  Total disability, temporary or permanent (up to 400 weeks, or until age 65 for permanent disability)  Survivor’s benefits  Medical expenses (employer selects; includes psychologists )  Rehabilitation  Permanent disability payments integrated with Social Security
  24. 24. Social Security: Overview  Benefits for: Retirement Disability Survivors (lump sum and monthly payments)  Based on contributions from employers and employees
  25. 25. Security and Retirement Benefits Security benefits  Social Security  Life insurance  Long-term disability coverage  Long-term care benefits Retirement benefits  Social Security  Defined benefit plans  Defined contribution plans  401(k) plans  ESOPs
  26. 26. Overtime Pay 27  Overtime is the amount of time someone works beyond normal working hours. Normal hours may be determined in several ways: 1. by custom (what is considered healthy or reasonable by society), 2. by practices of a given trade or profession, 3. by legislation, 4. by agreement between employers and workers or their representatives.
  27. 27. Health Coverage  The basic issue: cost containment  Basic medical coverage  Other coverage  Mental health  Vision  Dental  Wellness programs
  28. 28. Compensation salary structure in Pipavav 29 Breakup of cost to company (CTC): Description (This part is mandatory) Basic Some percentage of CTC HRA House rent allowance is optional component paid monthly P.F. Some percentage of basic Transport allowance Some amount is fixed by company. Washing allowance Special allowance Remaining amount to be consider as a special allowance Total CTC
  29. 29. Issues in compensation Policy  Fair compensation  Retain current employee for a long time 30
  30. 30. Thank You… 31