Compensation Dimensions (Payment for Work and Performance, Payment for Non-working Days, Loss of Job Income Continuation Benefit, Disability Income Continuation Benefit, Deferred Income, Spouse/Family Income Continuation Benefit, Health, Accident and Liability Protection, Income Equivalent Payments)
Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.Compensation Management is a Process of compensation management is to establish & maintain an equitable wage & salary structure & an equitable cost structure .it involves job evaluation, wage & salary survey, profit sharing &control of pay costs.
According to Thomas J. Bergmann(1988) compensation consists of four distinct components:
Compensation = Wage or Salary + Employee benefits +Non-recurring financial rewards+ Non-pecuniary rewards.
Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according the business needs, goals, and available resources.
Retention strategies are policies and plans that organizations follow to reduce employee turnover and attrition and ensure employees are engaged and productive long-term.
Compensation is the process of providing adequate, equitable and fair remuneration to the employees. It is what employees receive in exchange for their contribution to the organization. It is a comprehensive term which includes pay, incentives and benefits offered to the employees.
PURPOSEOF COMPENSATION
THE PAY MODEL
STRATEGIC COMPENSATION PLANNING
COMPENSATION POLICY ISSUES
COMPENSATION PRACTICES
Compensation is the process of providing adequate, equitable and fair remuneration to the employees. It is what employees receive in exchange for their contribution to the organization. It is a comprehensive term which includes pay, incentives and benefits offered to the employees.
PURPOSEOF COMPENSATION
THE PAY MODEL
STRATEGIC COMPENSATION PLANNING
COMPENSATION POLICY ISSUES
COMPENSATION ADMINISTRATION PROCESS
CLASSIFICATION OF REWARDS
COMPONETS OF FINANCIAL COMPENSATION
BASE PAY
VARIABLE PAY/PAY FOR PERFORMANCE : INCENTIVES
TYPES OF INCENTIVES
Compensation Dimensions (Payment for Work and Performance, Payment for Non-working Days, Loss of Job Income Continuation Benefit, Disability Income Continuation Benefit, Deferred Income, Spouse/Family Income Continuation Benefit, Health, Accident and Liability Protection, Income Equivalent Payments)
Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.Compensation Management is a Process of compensation management is to establish & maintain an equitable wage & salary structure & an equitable cost structure .it involves job evaluation, wage & salary survey, profit sharing &control of pay costs.
According to Thomas J. Bergmann(1988) compensation consists of four distinct components:
Compensation = Wage or Salary + Employee benefits +Non-recurring financial rewards+ Non-pecuniary rewards.
Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according the business needs, goals, and available resources.
Retention strategies are policies and plans that organizations follow to reduce employee turnover and attrition and ensure employees are engaged and productive long-term.
Compensation is the process of providing adequate, equitable and fair remuneration to the employees. It is what employees receive in exchange for their contribution to the organization. It is a comprehensive term which includes pay, incentives and benefits offered to the employees.
PURPOSEOF COMPENSATION
THE PAY MODEL
STRATEGIC COMPENSATION PLANNING
COMPENSATION POLICY ISSUES
COMPENSATION PRACTICES
Compensation is the process of providing adequate, equitable and fair remuneration to the employees. It is what employees receive in exchange for their contribution to the organization. It is a comprehensive term which includes pay, incentives and benefits offered to the employees.
PURPOSEOF COMPENSATION
THE PAY MODEL
STRATEGIC COMPENSATION PLANNING
COMPENSATION POLICY ISSUES
COMPENSATION ADMINISTRATION PROCESS
CLASSIFICATION OF REWARDS
COMPONETS OF FINANCIAL COMPENSATION
BASE PAY
VARIABLE PAY/PAY FOR PERFORMANCE : INCENTIVES
TYPES OF INCENTIVES
Discussion post AssignmentPlease review lecture notes to ass.docxduketjoy27252
Discussion post Assignment
Please review lecture notes to assist with questions
Week 2 Lecture
In Week 2, this course will discuss the uses of incentive pay plans including the pros and cons of the various employee pay plans. This week will also discuss the relationship between performance management and compensation.
Employee incentive compensation programs grew from the philosophy that employees will be driven by rewards. As a result, organizations use incentive compensation programs to produce their targeted results. Organizations reward employees who produce. Organizations need to improve or keep employee motivation and the key is finding out what employees want and value as incentives. There are a variety of incentive pay plans. A few such plans are discretionary bonus plans, annual pay increase plan, profit sharing, retention bonusses and project-based bonus. A common compensation plan is based on the employee’s seniority and hence called “seniority pay.” An employee under this plan receives compensation due to the length of time he/she has been with the organization or tenure with the organization. Many times, this type of plan is found in unionized workforces, however it can be found in many different types of organizations as well. The one issue with this type of plan is the increase in compensation may not be appropriate, especially if the employee is not performing and as a result, it may have a negative impact on the organization. The employee may have an expectation of an increase regardless of performance or organizational productivity. If the organization doesn’t produce, the employee will expect an increase regardless. Another incentive plan is the “merit plan” where employees are paid based on past performance usually during a specific period. The merit plan pays employees for meeting standards or performance goals and can be utilized in conjunction with annual performance evaluations. For this type of pay plan to work, the organization needs to set goals that are obtainable and realistic. Some organizations utilize SMART goals. SMART goals are goals that are set that are specific, measurable, attainable, relevant and time framed. Additionally, employees need to be made aware of the terms of the merit pay plan so they know how and when to reach their goals. Goals should be aligned with the organizational mission, vision and guiding principles. Merit pay programs are not appropriate for all companies and for the plan to be successful, top management must agree to reward the top performers with meaningful pay differentials that match the levels of the employee performance (Martocchio, 2017). Another incentive plan is the “person-centered pay” which is a plan that rewards employees for acquiring job related knowledge, skills or competencies (Martocchio, 2017). The person-centered play plan is not based on job performance. This plan is a means of rewarding employees for their actions acquiring skills. Furthermore, person-ce.
For many businesses, attracting, retaining, motivating and rewarding employees are key issues that can be the difference between success and failure. It is also a vital issue for any potential buyer (internal or external) and has a direct impact on business risk, and also value.
As part of our strategic advisory work with clients, we are able to offer a range of solutions to manage these issues and provide easy to implement solutions for business owners to encourage employees to think and act like business owners.
Cash or short-term incentive plans (STIP) engage employees in the process of achieving business objectives, reward desired behaviors, and help execute the organization’s long-term strategy. Incentive plans, when properly aligned to business outcomes and rolled-out effectively, can be a powerful tool that enable organizations to “do more with less” and achieve a greater return on investment (ROI) in cash compensation programs.
1. Employee incentive programs are a very powerful
concept when employees can understand and see the
connection between their performance and their
rewards.
Which motivate employees to exceed expectations and
grow the business. Such plans promote exceptional
behavior during a specific period.
In addition, they attract potential employees to an
organization and encourage company’s loyalty.
Incentive Program
3. Why Incentives are Important?
Incentives are considered beneficial to both employers as well as
employees in following ways.
Workers are likely to work at their best when they are offered
monetary rewards for good performance.
Provide opportunity for hard-working & ambitious employees to
earn more.
To improve work-flow, work methods & man – machine relation
ship.
To bring employee involvement to make employee innovative.
Incentives are the sound technique of improving productivity.
Help to improve discipline and industrial relation.
The cost of supervision are reduced.
To obtain desired result.
4. Employee Eligibility: Incentive plan allows for an incentive to be paid to eligible staff
based on the following factors:
Achievement of personal goals
Achievement of Divisional goals
The profit achievement of the organization in which they work.
Medium of Payment: How the bonus should be paid ? Such as
Money
Fringe benefits , Recognition/Appreciation
Flexibility at work
Holidays, etc.
Frequency of payment: How often should we pay.
Incentive level : The on target incentive payment will be confirmed after approval of the
budget and salary figures for the forthcoming year.
Target Setting :
Individual goals will be set by each employee, in conjunction with their manager.
Divisional goals will be agreed between the General Manager of each Division and the
Managing Director.
Organization operating profit targets will be set by the Board.
Design IssuesDesign Issues
5. Merit PayMerit Pay
Lump-Sum BonusesLump-Sum Bonuses
Individual Spot AwardsIndividual Spot Awards
Individual IncentivesIndividual Incentives
Short Term Pay-for-Performance PlansShort Term Pay-for-Performance Plans
8. In the absence of mutual trust between management & workers, an
incentives may be viewed as an attempt to improve production/ profit only.
Incentive plan should be installed in consultation with workers & union.
As well as Review by labor consultant/attorney .
Payment of incentives should be free from bias & established through
scientific/ proper work study.
To implement incentives plane effectively minimum wages should be
guaranteed to every workers.
It should be easy to understand & simple to operate so that employee can
calculate their own earnings.
It should provide equal opportunity to all workers to earn incentives pay.
Plan should not be very costly in operation.
Plan should be flexible to adopt any changes later on.
Payment of incentives should be prompt i.e. as early as possible.
It should be adequate to motivate each employees.
Every plan should be reviewed periodically.
What makes an Incentives plan effective?
9. what are happened on our mind?
Is this Ethical OR RIGHT ? PLEASE DO THIS
10. what are happened on our mind?
Is this Ethical OR RIGHT ? PLEASE DO THIS