Managing Compensation
FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT
Mr. Noel Teves
GROUP IV:
Haycey Oliveros Showbe Enot
Jhane Estremadora
Kevin Alfonso Cesar Valencia III (Not Available)
References:
http://www.authorstream.com www.google.com.ph
MANAGING COMPENSATION
Compensation
A total amount of the monetary and
non-monetary pay provided to an employee by an employer in return of work performed as required. Pay is a statement of an employee’s worth by an employer. Pay is a perception of worth by an employee.
Total Compensation
Direct
Wages / Salaries
Indirect
Time Not Worked
• Vacations • Breaks • Holidays
Commissions Bonuses
Gainsharing
Insurance Plans
• Medical • Dental • Life
Security Plans
• Pensions
Employee Services
• Educational assistance • Recreational programs
Strategic Compensation Planning
Strategic Compensation Planning
Links the compensation of employees to the mission,
objectives, philosophies, and culture of the organization. Serves to mesh the monetary payments made to employees with specific functions of the HR program in establishing a pay-for-performance standard. Seeks to motivate employees through compensation.
Value-added Compensation Evaluating the individual components of the
compensation program (pay and benefits) to see if they advance the needs of employees and the goals of the organization.
Common Strategic Compensation Goals:
1.
2. 3. 4.
To reward employees’ past performance
To remain competitive in the labor market To maintain salary equity among employees To mesh employees’ future performance with organizational goals
5. 6. 7.
To control the compensation budget To attract new employees To reduce unnecessary turnover
Pay-for-Performance Standard
The standard by which managers tie compensation to
employee effort and performance.
Refers to a wide range of compensation options,
including merit-based pay, bonuses, salary
Mr. Noel Teves
GROUP IV:
Haycey Oliveros Showbe Enot
Jhane Estremadora
Kevin Alfonso Cesar Valencia III (Not Available)
References:
http://www.authorstream.com www.google.com.ph
MANAGING COMPENSATION
Compensation
A total amount of the monetary and
non-monetary pay provided to an employee by an employer in return of work performed as required. Pay is a statement of an employee’s worth by an employer. Pay is a perception of worth by an employee.
Total Compensation
Direct
Wages / Salaries
Indirect
Time Not Worked
• Vacations • Breaks • Holidays
Commissions Bonuses
Gainsharing
Insurance Plans
• Medical • Dental • Life
Security Plans
• Pensions
Employee Services
• Educational assistance • Recreational programs
Strategic Compensation Planning
Strategic Compensation Planning
Links the compensation of employees to the mission,
objectives, philosophies, and culture of the organization. Serves to mesh the monetary payments made to employees with specific functions of the HR program in establishing a pay-for-performance standard. Seeks to motivate employees through compensation.
Value-added Compensation Evaluating the individual components of the
compensation program (pay and benefits) to see if they advance the needs of employees and the goals of the organization.
Common Strategic Compensation Goals:
1.
2. 3. 4.
To reward employees’ past performance
To remain competitive in the labor market To maintain salary equity among employees To mesh employees’ future performance with organizational goals
5. 6. 7.
To control the compensation budget To attract new employees To reduce unnecessary turnover
Pay-for-Performance Standard
The standard by which managers tie compensation to
employee effort and performance.
Refers to a wide range of compensation options,
including merit-based pay, bonuses, salary