Componsation

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Componsation

  1. 1. Compensation and Benefits Presented by B N Nagaraj
  2. 2. Compensation What is meant by Compensation What are the constituents which goes into Compensation How is it determined How is it implemented
  3. 3. What is Compensation To compensate in any manner for the service rendered It might be in Cash or Kind
  4. 4. Constituents of Compensation In cash might be : Salary and Wage Bonus LTA Incentives Reimbursements Performance pay/ Variable pay
  5. 5. Constituents of Compensation In Kind or Perks Welfare Schemes Holiday Packages Leave and Holidays Fringe Benefits which goes along with the Positions ESOPs
  6. 6. Constituents of Compensation Examples Company Leased Accommodations. Company Car Free education for Children Club Facilities Recreation facility Working from home
  7. 7. Constituents of Compensation Contd :- Good working Atmosphere Equal rights Rewards (Annual, long service, Best employee etc) Annual get together Position and Authority Insurances Training and Development (internal / external / abroad) Career Growth Canteen Loans and Advances Rehabilitations Retirement Benefits
  8. 8. Why do we do all these ? Business is changing Business Scenario is changing People expectations are changing Stiff Competition in Business Globalization Globally Competitive Acquisitions and Mergers Talent attraction Talent Retention Talent Import
  9. 9. Why do we do all these ? Earlier Paternalistic role played by Govt organization Changed Scenario to Perform to survive and grow
  10. 10. Best Practices “Best Practices” is not a designation limited to small and exclusive Companies. Often, the most useful ideas come from Companies that are faced with critical problems and are forced to find a solution. A best practice should be able to demonstrate a positive impact on Company financial performance, customer satisfaction and/or employees satisfaction.
  11. 11. Best Practices Improve Company bottom line financial performance Enhances customer satisfaction Strengthens the relationship between the Company and its employees
  12. 12. How is it determined Legislations by Government Compensation surveys Crises Creativity Leaders Paying Capacity Industry wise / region wise Non profit organization NGOs Trusts
  13. 13. Wages May be classified as : Minimum wages Living Wages Fair wages Competitive wages Luxury wages
  14. 14. Labour Legislations Minimum Wages Act – 1948 Minimum Wages rules – different States Minimum Wages for different Industries and different skills. Minimum wages for different Zones in the same State Social security Acts like PF, ESI, WC Act, MB Act, Gratuity Act. LWF Act etc,.
  15. 15. Labour Legislations Basic Dearness Allowance HRA Conveyance Allowance City Compensatory Allowance
  16. 16. Compensation surveys Industry wise comparisons Region wise comparisons Skill wise comparison Law of Demand and Supply Paying Capacity of the Organization Special perks to retain talented employees
  17. 17. How is it implemented Forced to be implemented by legislations Timing In some company where Unions are prevailing – by way of negotiations and settlements – either long term or short term Based on paying capacity in one phase or in phased manner Rewards for exceptional people Law of demand and supply Crises
  18. 18. Thank you B N Nagaraj

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