IN THE NAME OF ALLAH THE MOST BENEFICIENT

& THE MOST MERCIFUL

COMPENSATIONNEEDs

ASSESSMENT

What is Career?

Get reality in touchUS, EUROPE, AUSTRALIA AND CANADAWhy are they # 1InfrastructureConstitution Development

In today's world the term career is seen as a continuous process of learning and development. A career is an evolving order or sequence of work activities and positions that one experiences over time as well as associated attitudes, knowledge , and competencies that develop throughout one’s life

SEGMENT

PERSONAL PROFESSIONAL

FAMILY OFFICE / WORK

Compensation Need Assessment

Those employees left the organization will join another Organization. In this scenario current observation concerning incumbent with HR consulting firm to reevaluate the structure of Compensation and Benefits plan with respect to multiple organizations data. HR consulting firm seeks for bench mark in the market share and describe the best after controversy.Consulting Firms: Monster, HRSGlobal, Comsys, Clarendon Parker, Etc.

Performance Appraisal Evaluation.

Compensation Needs Assessment

1. Analysis of career opportunities both within and outside the organization.

2. Analysis of career opportunities both within and outside the organization.

3. Relating specific jobs to different career opportunities.

Work Ethics: be honest to yourself

Successful at workWork = Make people successful

Profession given to earning for lively hood.

Career is directly proportional to commitment for the excellence irrespectively of what job you choose to do or get.Key parameters in a successful person.Assuming ownership not available, Avoid Gossiping, Be proactive work for company to grow, Do not take thing personally take it professionally.

4. Establishing realistic goals both short-term and long-term.

5. Formulating career strategy covering areas of change and adjustment, Preparing and implementing action plan.

Compensation Needs Assessment

Bring out Gold from the Work. Have win ----- Win -----Situation.

Accept your mistakes / mistakes – learn from your mistake.

Do not repeat errors.

An organization can make the reason for not doing the task.

Successful Organization find alternatives to complete the task. Find N alternatives to complete the task. Create a long-term Strategy.

Compensation Needs Assessment

Those employees left the organization will join another Organization. In this scenario current Observation concerning incumbent with HR consulting firm to reevaluate the structure of Compensation and Benefits plan with respect to multiple organizations data. HR consulting firm seeks for bench mark in the market share and describe the best after controversy.

Compensation Needs Assessment

Budget AllotInstitute declares Budget for their remuneration packages.According to Job Profile & Resources.

Compensation Needs Assessment

Indirect Financial Payments : Pay in the form of Financial Benefits such as insurance, etc.

Direct Financial Payments : Cash, Current Assets, Etc.

Ranking Method : The simplest method of job evaluation that involves ranking each job relative to all other jobs, usually based on overall difficulty.

Grade Definition : Written descriptions of the level of, say, responsibility and knowledge required by jobs in each grade. Similar jobs can then combine into grades or classes.

Pay Grade : A pay grade is comprised of jobs of approximately equal difficulty.

Pay Ranges : A series of steps or levels within a pay grade, usually based upon years of service.

Globalization and Diversity Compensating Expatriate Employees:

Compensation Needs AssessmentPay ScaleVariable Pay Scale : Different Jobs have Different Salary Structure According to Skills, Knowledge, Experience and Behavior.

Fix Pay Scale : Specific Scale for relevant job.

Over Time : 1.5 or Twice to Basic salary / Gross wages. D.O. Organization Policy. Basic Salary : 60, 65 (%) or D.O. Organization Policy.

Provident Funds : 11% Employee + 11% Organization D.O. Organization Policy.

Fringe Benefits : Luxury Transportation, House Allowance, Family Medical, Food, Worldwide Air Tickets, Membership,

Children Tuition Fees, Etc…

Benefits : Return Air Tickets, Transportation Bonus & Increments(Conditions) Entire or Individual Department.

Compensation Needs Assessment

Recreation Activity :Sports, Service Excellence Day, Parties, Etc…

Annual Leave & Casual Leave Policy :Maternity Leave, Absenteeism, Extra Leaves,

Emergency Leaves.

Motivation Level :Reward, Promotions. Timing for prayers / Canteen to Serve.

Compensable Factor : A fundamental, compensable element of job, such as skills, effort, responsibility, and working conditions.

Salary Compression :Salary inequity problem, generally caused by inflation , resulting in longer term employees in a position earning less than workers entering the firms .

Government Law.

The limit not chargeable to tax for Tax Year 2010 is: Rs. 200,000.

The limit not chargeable to tax for salaried women is: Rs. 260,000.

Compensation Needs Assessment

Slab No. Taxable income Tax Rate

1. Where taxable income is below Rs. 200,000 0%

2. Where the taxable income is between Rs. 200,000 - Rs. 250,000

0.50%

3. Where the taxable income is between Rs. 250,000 - Rs. 350,000

0.75%

4. Where the taxable income is between Rs. 350,000 - Rs. 400,000

1.50%

5. Where the taxable income is between Rs. 400,000 - Rs. 450,000

2.50%

6. Where the taxable income is between Rs. 450,000 - Rs. 550,000

3.50%

7. Where the taxable income is between Rs. 550,000 - Rs. 650,000

4.50%

8. Where the taxable income is between Rs. 650,000 - Rs. 750,000

6.00%

9. Where the taxable income is between Rs. 750,000 - Rs. 900,000

7.50%

10. Where the taxable income is between Rs. 900,000 - Rs. 1,050,000

9.00%

Pakistan Income Tax Slabs / Personal Income Tax Rates for 2010:

11. Where the taxable income is between Rs. 1,050,000 - Rs. 1,200,000

10.00%

12. Where the taxable income is between Rs. 1,200,000 - Rs. 1,450,000

11.00%

13. Where the taxable income is between Rs. 1,450,000 - Rs. 1,700,000

12.50%

14. Where the taxable income is between Rs. 1,700,000 - Rs. 1,950,000

14.00%

15. Where the taxable income is between Rs. 1,950,000 - Rs. 2,250,000

15.00%

16. Where the taxable income is between Rs. 2,250,000 - Rs. 2,850,000

16.00%

17. Where the taxable income is between Rs. 2,850,000 - Rs. 3,550,000

17.50%

18. Where the taxable income is between Rs. 3,550,000 - Rs. 4,550,000

18.50%

19. Where the taxable income is between Rs. 4,550,000 - Rs. 4,950,000

19.00%

20 Where the taxable income is more than Rs. 5,000,000 above

20.00%

What Is Competency-based Pay?

• Competency-based pay– Where the company pays for the employee’s range, depth,

and types of skills and knowledge, rather than for the job title he or she holds.

• Competencies– Demonstrable characteristics of a person, including

knowledge, skills, and behaviors, that enable performance.

Compensation Needs Assessment

Why Use Competency-Based Pay?

• Pay plans that aim for high-performance work system.

• Paying for skills, knowledge, and competencies is more strategic.

• Measurable skills, knowledge, and competencies are the heart of anycompany’s performance management process.

Competency-Based Pay: Pros and Cons• Pros– Higher quality– Lower absenteeism and fewer accidents

• Cons– implementation problems– Cost implications of paying for unused knowledge, skills and behaviors– Complexity of program– Uncertainty that the program improves productivity

BROADBANDING

Consolidating salary grades and ranges into just a few wide levels or “bands,” each of which contains a relatively wide range of jobs and salary levels.

Wide bands provide for more flexibility in assigningworkers to different job grades.Lack of permanence in job responsibilities can beunsettling to new employees.

Compensation Needs Assessment

Vroom suggests that an employee's beliefs about Expectancy, Instrumentality, and Valence interact psychologically. In this way they create a motivational force, such that the employee will act in a way that brings pleasure and avoids pain.

Compensation Needs Assessment

Effort

Performance

Outcome(Reward)

Personal Goals

Expectancy? Leads to

Instrumentality? Leads to

Valence?

Herzberg Two Factor Theory

Compensation Needs Assessment

The sum total of all forms of payments or rewards provided to employees for performing tasks to achieve organizational objectives

“If you pay peanuts, you get monkeys.”

James Goldsmith

Compensation Needs Assessment