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GROUP-5-PPT.pdf
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- 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 Focusyour employees effort Attracting quality employees Retaining top performers Motivating your employee
- 4. Main Components of Compensation Compensationis 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 bonusesare 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 acompetitive 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 Payrate 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 includesall 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.
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- 11. Ranking Method This methodranks 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 Inthis 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 Thismethod 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 thisstrategy 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.
- 15. Competitive Market Analysis Method Thisjob evaluation method uses external data to inform decision about a job’s relative value in an organization.
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- 17. DIRECT FORMS OFCOMPENSATION - Salary - Hourly - Commission - Bonuses
- 18. INDIRECT FORMS OFCOMPENSATION - Benefits - Equity Based Program
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- 20. Tax Advantages ofBenefits 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 underthe 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 vacationleavecredits 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 Benefitsand 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 concernedwith 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