compensation and benefits- group 6
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7/29/2019 Compensation and Benefits- Group 6
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Compensation & Benefits
Presented by:
Kush BhattSanya Dalmia
Sneha Desai
Sakshi Korde
Karim Musani
Parag Patil
Nikita SinghSiddhi Shah
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Compensation
•Remuneration received by an employee in
return of his/her contribution to the
organization.
•Balances work-employee relation by
providing monetary and non-monetary
benefits to employees.
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Objectives of CompensationOrganizations are established to accomplish
specific objectives. To achieve these objectives, an
organisation must be able to
• Attract
•
Retain• Motivate
workforce with appropriate skills and aptitudes. A
competitive compensation system plays an
important role
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Total Compensation
Base or PrimaryCompensation
(Wage or Salary)
SupplementaryCompensation(Incentives,fringe and other benefits)
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Wages and Salary
Wage – payment for labour or services to aworker, especially remuneration on an
hourly, daily or weekly basis or by the
piece. Wages are for blue collar employees.
Salary – Regular wages received by an
employee from an employer on a monthly
basis. Salary is for white collar employees.
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Design of Salary Structure
1. Job Analysis
2. Job Evaluation
3. Pay Policy Identification
4. Pay Survey Analysis5. Pay Structure Creation
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Components of Compensation
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Salary Structure(A) Basic Salary + HRA + DA
(B) Conveyance + Medical + Other / Special Allowance if any
(C) Employers Contribution for PF (12% of Basic) (8.33% goes to
pension fund and 3.67% goes to PF Fund)
Employers Contribution for ESIC (4.75% of Gross)
(D) Employees Contribution for PF (12% of Basic)Employees Contribution for ESIC (1.75% of Gross)
Gross Salary = (A) + (B)
CTC = (A) + (B) + (C)
Net in Hand = (A) + (B) - (D) ...
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Compensation Policy
• It is a written document rather acommitment of the organisation to ensure
easing out payments, providing opportunities
to grow.
• It reflects the intention and objectives of the
company to hire or acquire, maintain and
retain its employees.
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Compensation policy elements• Types of salaries/ wages and relevant plans
• Job evaluation
• Design of Compensation Packages
• Provision of welfare, security, motivation, incentives
and growth opportunities.• Overtime Opportunities
• Benefits/Incentives and their criteria
• Method and timing of payments
• Employee’s growth opportunities.
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Benefits
Objectives
• To recruit and retain the best personnel.• To protect them against certain risks.
• To increase and improve employee morale.
• To gain loyalty and co-operation of employees.
• To improve the productivity of employees.
Benefits - Indirect monetary and non monetary compensation paid to an employee.
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Pay for time not worked
Employee Security Problems
Other Services
Types of Employee Benefits
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Pay for time not worked
• Rest period
• Holidays
• Vacations
• Sick leave
• Maternity/Paternity leave
• Leave of Absence (e.g. educational leave)
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• Gratuity payments
• Accident insurance
• Life Insurance
• Mediclaim
• Retirement Benefits – e.g. pension benefits.
• Superannuation
Employee Security Problems
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Other Services
• Eating facilities• Transportation
• Child care
• Housing service• Recreational Facilities
• Educational service
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Rewards & Recognition
Employee reward system refer to programs
set up by a company to reward
performance and motivate employees onindividual or group level. They are
monetary in nature whereas recognition
programs are generally not monetary innature
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Types of RewardPrograms
Variable Pay
Bonuses
Stock Options
Profit Sharing
Group BasedRewardSystem
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Recognition Tools
Newsletters or Magazine
Recognition boards
Thank you
Lunches or after work events
Family Days
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Benefits of effective recognition
Gives the organisation the ability to showappreciation and say “thanks!”
Promotes trust and respect.
Facilitates and encourages change.
Drives improvement.
Improves the quality of work life.
Motivates individuals and teams to do their best.
Enhances loyalty.