A comprehensive presentation on introduction of Compensation and Benefits.

1. “Take our 20 best people and virtually
overnight we become a mediocre company.”
- Bill Gates, Microsoft
“Take my assets, leave my people, and in
five years I will have it all back.”
- Alfred Sloan, General Motors
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2. Human Resource Management
We will cover the following:
Remuneration & its Components
Compensation Administration Process
Wage & salary Administration
Different types of Incentives and Incentives
Plan
International Compensation.
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• Wage, Salary and
Reward Administration

3. Results from employment with the organization
Includes all forms of financial returns and tangible services
& benefits employees receive as part of employment
relationship:
Intrinsic Extrinsic
Achievement Formal Recognition
Feelings of accomplishment Fringe Benefits
Informal Recognition Incentive Payments
Job Satisfaction Pay
Personal growth Promotion
Status Social Relationships
Work Environment
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4. Definition: Remuneration' is a general term covering the
monetary and related entitlements of employees - paid by
employers in return for the work of employees.
Financial Non Financial
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Hourly
and
monthly
Rated
Wages
and
Salaries
Remuneration
Incentives
Individual
Plans
Group
Plans
Fringe
Benefits
P.F,
Gratuity,
Medical
Care,
Accident
Relief,
Health and
Group
insurance
Perquisites
Company
Car, Club
Membership,
Direct Indirect
Paid
Holidays,
Furnished
House, Stock
option
scheme, etc
Job Content
Challenging job,
Responsibilities,
Recognition,
Growth
prospects,
Supervision,
Working
conditions, Job
sharing, etc.
Components:

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6. It contains two parts: Job Description & Job
Specification. This can help to know about
the duties and responsibilities will be covered
by the specific job and also the quality of the
people engaged in that job. This is necessary
to set a rationale pay structure for a specific
position.
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7. Wages: Wages are compensation. This
includes basic wages, allowances, bonuses
etc. On the employers’ points of view, wages
form that part of cost of production which is
attributed as compensation paid to labor.
Wages are paid in the form of time rate or
piece rate to the workers, who are directly
involved in the production or commercial
activities.
Salary: This is compensation paid to the
indirect labor in the form of cash. Indirect
labor involves supervisors, managers and
supporting staff like office assistants, clerks,
etc. Salaries are paid in the form of time
rate, mostly on monthly basis.
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8. On the basis of the employee needs and ability of
the organization, there are various kinds of wages.
Wages are generally four types:
Subsistence wages
Minimum Wages
Fair Wages
Living Wages
Subsistence wages: This is level of wage below the
minimum level which can lead inhuman life to the
employees.
Minimum Wages: This is a wage level fixed by
government which is considered adequate, taking
into account the cost of living. All the organizations
are bound to follow this direction so that no
employee is paid a wage less than the minimum
wage fixed by government irrespective of grade,
class or nature of work.
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9. Fair Wages: This is fixed by employer. This
level of wage varies from industry to
industry. The main criteria are the capacity
of payment. Fair wage is a wage above the
minimum wage but below the living wage.
Living Wages: Living wage is one which
should enable the earner to provide for
himself and his family not only the bare
essentials of food, clothing and shelter, but a
measure of frugal comfort, including
education for his children, protection against
ill health, requirement of essential social
needs and a measure of insurance against the
more important misfortune including old age.
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10. Base Salary - the fixed amount to be paid
Incentives - additional variable pay based on performance
against objectives
Protectives - programs which insure employees against
loss
Capital Accumulation – programs that provide the
opportunity to establish a personal estate (equity /stock
plan)
Retirement Income - plans that defer income for services
rendered to a later payment date
Perquisites - company paid allowances beyond direct
pay(Housing,Car, Leave travel, etc.)
Paid Time Off - vacations, holidays, maternity leave, etc
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