Compensation Management• Compensation Management is designing and implementing total compensation package with a systematic approach to providing value to employees in exchange for work performance• Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness
Types of Compensation• Direct compensationIt refers to monetary benefits offered and provided toemployees in return of the services they provide to theorganization. The monetary benefits include basicsalary, house rent allowance, conveyance, leave travelallowance, bonus, PF/Gratuity, etc. They are given at aregular interval at a definite time.
Types of Compensation• Indirect compensationIt refers to non-monetary benefits offered and providedto employees in lieu of the services provided by them tothe organization. They include Paid Leave, Car /transportation, Medical Aids and assistance, Insurance(for self and family), Leave travel Assistance, RetirementBenefits, Holiday Homes.
Types of Compensation• IncentivesIncentives are the additional payment to employeesbesides the payment of wages and salaries. Often theseare linked with productivity, either in terms of higherproduction or cost saving or both. Can be administeredindividually and for groups Additional compensationhaving immediate effect and no future liability.
Types of Compensation• Fringe BenefitsFringe benefits include such benefits which are provided tothe employees either having long-term impact like providentfund, gratuity, pension; or occurrence of certain events likemedical benefits, accident relief, health and life insurance; orfacilitation in performance of job likeuniforms, Canteens, recreation, etc. Administered for a groupmostly• PerquisitesThese are normally provided to managerial personnel eitherto facilitate their job performance or to retain them in theorganization. Such perquisites include company car, clubmembership, free residential accommodation, paid holidaytrips, stock options, etc. Administered individually mostly
Recent Trends• Group Mediclaim Insurance Scheme• Personal Accident Insurance Scheme• Company Leased Accommodation• Recreation, ATM and Concierge facilities• Corporate Credit Card• Cellular Phone / Laptop• Personal Health Care (Regular medical check-ups)• Loans• Educational Benefits (For Higher studies)
Recent Trends• Flexi-time• Regular Get together and other cultural programs• Wedding Day / Birthday Gift• Employee Referral Scheme• Maternity Leave• Employee Stock Option Plan
Benefits and Perks @ Goooooogle• Physical Fitness• Healthy Eats - a chef makes custom cook every single day• Rejuvenating• Dry-cleaning and alterations• Car wash• Unrestricted dress code• DVD rental• Bike repairs• Haircuts• Theatres
House Rentallowance Transport and fuel For a specific project Amt returned after service
ComparisonCurrent Trends Traditional Trends Emphasis on employee Legacy compensation engagement in programs (longevity, shift, health, energy, employer strategic goals overtime, PAT vacation) Skill and Knowledge Non-consumer engaged Attainment employee health benefits Flexibility in work schedules Paper-based delivery of Emphasis on total services compensation Compensation based on Compliance service rather than skills Productivity through business and performance simplification and technology