2. Group 5 members :
Chrissy Austero
Cyryl Magbanua
Hilary Pioquinto
Jelo Maballo
Kasandra Payupay
Maria Liza Dollete
Norwin Acelar
Rashelle Diezma
3. Objectives of Compensation
Focus your
employees effort
Attracting quality
employees
Retaining top
performers
Motivating your
employee
4. Main Components of
Compensation
Compensation is the combination of salaries, wages and
benefits that employees receive in exchange for them doing a
particular job. It can include an annual salary or hourly wages
combined with bonus payments, benefits, and incentives.
These could include group health care coverage, retirement
contributions, and short-term disability insurance. A total
compensation package usually includes several of these
components.
5. Components of Employee
Compensation
• Salary and wages
In a compensation package, these typically make up the single
largest component. This comes as no surprise since they are what
potential and current employees use as a common point of
comparison.
6. • Bonuses
Employee bonuses are one common way employers provide
performance incentives and are usually paid out annually, often at
the end of the year, in a single lump sum
• Federal/state pay requirements
State and federal laws are in place for protecting employees from
bad employment practices that could negatively affect the
employee's paycheck.
7. • Providing a competitive package
Many employers offer a competitive package of employee
benefits to attract and retain employees. Along with a
competitive wage or salary, additional benefits are usually
provided
•Long-term incentives
Part of a competitive package could include stock grants or stock
options to serve as a long-term incentive.
•Health insurance
Health insurance is fairly standard with medium to large-size
companies and some small businesses.
8. Determining Pay Rates
Pay rate or wage rate is the rate of pay per
period of work or unit of production. The
national average wage rate can be found on
the Social Security Administration website.
Pay or wage is the compensation paid to
workers for their labor. It is usually in the
form of money.
9. Basic Factors
in
determining
Pay rates
Employee
compensation
includes all forms
of pay going to
employees and
-
arising from their
employment.
Employee
compensation
All forms of pay
or rewards going
to employees
and arising from
their
employment.
Direct financial
payments
Pay in the form of
wages, salaries,
incentives,
commissions, and
bonuses.
Indirect financial
payments
Pay in the form of
financial benefits
such as insurance.
11. Ranking Method
This method ranks jobs in order based on each position’s perceived value in
relation to others. Although this method does not consider market
compensation rates, it may work well for smaller companies. Larger
companies employing this method could be complex due to the larger
number of positions, but could still work if jobs are grouped, for example by
professional level.
12. Classification/ Grading Method
In this job evaluation method, generic job characteristics
are grouped together to reflect their level of skill and
responsibility at several predetermined grade
classifications. This method tends to be straightforward
and not as time-consuming as some others.
13. Point Factor Method
This method identifies specific job factors that add
value and worth to a position. These factors are
separated into groups such as skill, responsibility,
and effort, and are then assigned a numerical or
weighted point value.
14. Factor Comparison Method
this strategy has job factors identified under
primary groups, and each factor is assigned a
dollar value as opposed to a point value. As this
tends to be more complex, only a few
organizations employ this method.
20. Tax Advantages of Benefits
The term tax advantages of benefits alludes to any assess law
that makes a difference you decrease your charge risk.
Benefits run from derivations and assess credits to
prohibitions and exclusions. They cover different
ranges, counting programs for families, instruction,
representatives, and characteristic disasters.
21. Nontaxable Benefits under the
Code
De Minimis Benefits
There are certain benefits and allowances that are
given to employees which are not subject to
income tax.
22. •Convertible unused vacation leavecredits of private employees not
exceeding ten days during a year.
• The convertible value of vacationand sick leave credits paid to
government officials and employees
• Medical cash allowance to dependents of employees
• Rice subsidy of 2,000 or one sack of 50 kg. Rice per month
• Any gifts received during Christmas and major anniversary
celebrations
• Any gifts received during Christmas and major anniversary
• Daily meal allowance for overtime work and night/
graveyard shift
23. Classification of Employee
Benefits and Services
Benefits and Services are called indirect compensation and are also
known as "fringe benefits" and "Perks".
Employee benefits and services
- Any benefits that the employee receives in addition to direct
remuneration
24. •Management is concerned with attracting and keeping
employees.
• The purpose of such benefits is to retain people in the
organization and stimulate them to greater effort and
higher performance.
• They foster loyalty and act as a security base for the
employee.
25. Coverage of Benefits
1. Payment for time not worked
2. Employee Security
3. Safety Benefits
4. Health Benefits
5. Insurance Benefits
