The document discusses compensation plans for sales employees and managers. It states that sales employees receive variable pay based on meeting sales goals, with exceptional performance rewarded higher. Manager incentives are based on profit contribution, customer satisfaction, and employee satisfaction. The document also discusses employee benefits like social security, life insurance, retirement plans, allowances, and recognition programs. It defines job satisfaction as how content an individual is with their job, and lists factors like communication, relationships with supervisors, personality, and well-being as influences.

1. Compensating
Employees
Incentive Pay System and Employee Benefits
Job Satisfaction
MBA – Personnel Management
and Employee Relation
Group 2
Mr. Edmer Gatchalian
Mr. Elmer Serabia

2. Sales Incentive Plans
Sales employees are almost always provided a
compensation package with a variable compensation
component. In one company, the key points and guiding
principles of its sales incentive plan were articulated as
follows:
Sales incentives are earned based on actual results
delivered against meaningful expectations.
Exceptional performance yields top of the market
rewards. On target earnings represent a market
competitive pay level.
Profitable, balanced business performance is required
and rewarded.
Provide one face to the customer for our products and
services.

3. Sales Incentive Plans
Frontline management owns the execution and
promotion of the sales plans.
The goals reflect different economics of our offerings
(lower margin products, higher margin products, and
services)
Salary/incentive ratios reflect the level of influence on
acquiring and retaining revenue/ orders and profit, roles,
complexity and length of sales cycle.
Total compensation is more than base salary and
incentives.
Total pay is an outcome of performance against assigned,
meaningful, and achievable goals.

4. Management Incentive Plans
Performance objectives measured in the incentive plan
are profit contribution, customer satisfaction, and
employee satisfaction. A condition of receiving the
incentives attached to these measures of individual
performance is a corporate performance condition of
contribution margin.
The performance measures are weighted, with profit
contribution at 60%, discretionary performance objective
at 20%, and customer satisfaction and employee
satisfaction at 10% each.
Management incentives that provides variable compensation
are effective tools in shaping and directing behaviors to
support company objectives. While not everything rests on
the incentive plan, it stills serves as an effective tool.

5. Employee Benefits
Includes various types of non-wage
compensation provided to employees in
addition to their normal wages or salaries.
The purpose of employee benefits is to
increase the economic security of
employee or staff members, and in doing
so, improve worker retention across the
organization.

6. Social Security
The Social Security System of the Philippines, created by
Republic Act No. 1161, as amended, was established on
September 1, 1957. Its purpose is to render assistance to
workers and families in case the source of their income is
terminated, reduced or interrupted because of sickness,
disability, death, or old age.
The law provides for the compulsory coverage of all
employees in private firms up to the age of 60, with a
maximum monthly salary coverage that gets reviewed on a
regular basis. Funds for the payment of the various benefits
provided for, come from premium payments shared by the
employer and employees according to the schedule specified
by SSS law. From an initial offering of social security benefits
in the early years with a focus on giving social security
protection, SSS has expanded its benefits to include:
retirement, maternity, disability, sickness, funeral, and short
and long term salary loan, stock investment, and housing
loan benefits.

7. Social Security
The Social Security Law has undergone several
amendments in order to enlarge its coverage and
improve the benefits for its members. A quick
overview of these benefits are available from the
SSS through its handbooks and website.
Membership in the Social Security System is for
life. Once a member, the person remains covered
and protected against hazards of disability, death,
old age, and sickness.

8. Life Insurance
A health plan is an important and valued protective
benefit. It is considered a basic component of any benefits
package today. Differences would be in coverage and
method of delivering the service.
Health Insurance
Providing employees with life insurance coverage, as a
protective form of benefit, it is a common practice. Policies
are usually fully paid for by the company, and this benefit is
acknowledged as a supplement to the government-
mandated and limited Employees Compensation
Commission insurance coverage.

9. Security and protection benefits are crucial in the
compensation package of employees in the Philippines. In
this country, providing security and protection for aging
employees is supported by law and is a joint undertaking
between the Social Security System, the employer and in
some cases, the employee.
Retirement
There is also a retirement law under Republic Act No. 7641,
the key provision of which is a mandatory retirement pay of
22.5 days of monthly basic salary for every year of service
at age 60. Providing retirement benefits is a common
practice in many companies today to sizeable and is a long-
term commitment. There are also many options in the
features that will be provided and in the commitments that
will be made.

10. Car benefits are more narrowly defined in terms
of eligibility. In many cases, eligibility would be
defined in terms of management rank (that is, car
benefits may be availed of by officers or members
of the Executive Management Team only) or
nature of work (for example, sales and marketing
employees, professional services employees, or
frontline employees only). In one company, a car
benefit is given only to the head of the
organization and his/her direct reports or the
executive team.
Car and Car Related Benefits

11. Companies could provide to selected
employees various forms of allowances to
compensate extraordinary circumstances
based on certain conditions.
OTHER BENEFITS
Allowance

12. Provincial Allowance
Most companies provide meal and/or transportation
allowance during overtime work. This is in addition to and
distinctly separate from overtime pay and premium pay for
work outside of normal office hours of the employee.
Policies vary at the point of eligibility and the amounts of
these overtime meal and transportation allowances.
Overtime Meal/Transportation
Allowance
An employee regularly assigned to work in the provinces
shall be entitled to a fixed monthly provincial allowance in
addition to the regular salary. The employee is not expected
to claim for overtime pay for any travel time outside of
regular working hours. In some cases, the same employee
is still eligible for other out-of-town assigned benefits such
as per diems and transportation allowance.

13. Companies with a strict standard of customer
service, usually those with a commitment to be
available 24 hours a day, seven days a week,
need to schedule their employees, usually
engineers on stand-by are compensated for
making themselves accessible to receive calls and
geographically available to provide service outside
of office hours through a stand-by allowance. This
allowance is on top of any overtime pay that may
be earned if indeed a customer call has to be
responded to.
Standby Allowance

14. Companies use recognition programs and
contests to focus effort on tactical objectives and
celebrate the success of teams and individuals.
There are various forms if recognition – financial
and nonfinancial, individual and team.
RECOGNITION
Individual Recognition Nomination
The person do that went above and beyond the
assigned duties.
Team Recognition Nomination
The team accomplished because of their effective
teamwork.

15. JOB SATISFACTION
It is simply how
content an
individual is with
his or her job, in
other words,
whether or not
they like the job
or individual
aspects or facets
of jobs, such as
nature of work or
supervision.

16. Communication overload and under load -
Demands can be characterized as a
communication load, which refers to “the rate and
complexity of communication inputs an individual
must process in a particular time frame
Superior-subordinate communication - The way
in which subordinates perceive a supervisor's
behavior can positively or negatively influence job
satisfaction
Influencing Factors
Environmental Factors

17. Influencing Factors
Individual Factors
Emotion - mood and emotion at work are
related to job satisfaction
Personality - individual differences among
people in behavior patterns.
Psychological Well-being
The mental wellness of a person.
Absenteeism
Habitual pattern of absence from a duty or
obligation.

18. THANK YOU
MBA – Personnel Management
and Employee Relation
Group 2
Mr. Edmer Gatchalian
Mr. Elmer Serabia