reward and recognition

REWARDS AND

RECOGNITION

Marilyn P. Allanigue, MMC

REWARDA thing given in

recognition of service, effort, or achievement.

(Wikipedia)

FORMULATING COMPANY

COMPENSATION SALARY

Company must formulate a sound compensation policy on

which basis the elements, design, relative important, cost,

nature, and frequency of administration of its cash, near-

cash compensation, and benefits would be strategically

positioned, developed and reviewed.

Report onREWARDS

AND RECOGNITIO

N

Marilyn P. Allanigue

Master in Public Administration2nd Semester - SY 2012-13

DIMENSION OF A COMPENSATION

PHILOSOPHY

PAY FOR PERFORMANCE“We reward outstanding

performance with outstanding pay”

Companies adapt it for pragmatic reasons – it is flexible and can be changed to respond

to new goals and priorities.

Report onREWARDS

AND RECOGNITIO

N



Companies show appreciation for an

employee’s loyalty and commitment and long

service, or when a company

increases pay levels or introduces a pay item during hard economic times to help

employees cope with the cost of living.

Report onREWARDS

AND RECOGNITIO

N



MARKET COMPETITIVENESSThis can be seen through the manner by which a company

approaches its market.

Market rates will be expressed in terms of total compensation –

the value of benefits, base salaries or wages, and incentive

awards.

Report onREWARDS

AND RECOGNITIO

N



When a “pay for performance” is blended with a “market” philosophy, it means that the compensation programs

are designed to value and rewards employee’s

performance, as well as the acquisition and development of skills and competencies,

while maintaining competitiveness with the external labor market.

Report onREWARDS

AND RECOGNITIO

N



Most companies will need an external reference or benchmark

against which to position salaries.

It may be geographical community such as industrial zone or city or region in the

country. It can also be a specific industry like textile, high

technology, or an agricultural plantation.

Report onREWARDS

AND RECOGNITIO

N



TOTAL COMPENSATION EQUATION

A + B + D = EWhere:A. Guaranteed Cash

Regular Salary Fixed and guaranteed allowance Fixed / guaranteed bonuses (13th month)

B. Variables or discretionary Compensation

Commission, profit share, performance bonus, management incentives

C. Total Cash (A + B)

D. BenefitsE. Total Remuneration (C + D)

Report onREWARDS

AND RECOGNITIO

N



REGULAR SALARY = basic salary + fixed and guaranteed allowances

GUARANTEED CASH = regular salary + fixed and guaranteed bonuses

TOTAL CASH = guaranteed cash + variable or discretionary compensation

Report onREWARDS

AND RECOGNITIO

N



Pay must be equitable in relation to what other employees get for what they do. Equity can be set based either on qualifications required for the job; the duties and responsibilities of the job; the supply and demand of workers so that where it is scarce, the rate may naturally be higher. An employee pay must be commensurate to his efforts.

Report onREWARDS

AND RECOGNITIO

N



Although pay rates must be adequate for the services each employee renders, they must be realistic, based on the company’s capacity to pay and to compete in the labor market so that it can continue to attract and retain the right employees.

Report onREWARDS

AND RECOGNITIO

N



The type of industry and the cost structure of the company in running its business, particularly in the relative value of salaries and wages against other expenses, also dictates the size of basic salary.

Report onREWARDS

AND RECOGNITIO

N



The purchasing power of the money that the employee receives from his employer determines the amount of essential needs for a descent living that the employee can provide for himself and his family.

Report onREWARDS

AND RECOGNITIO

N



Any regulation on wages such as minimum wage or a wage order adjustment should dictate a minimum level of basic salary.

Report onREWARDS

AND RECOGNITIO

N



METHODS FOR BASIC SALARY ADJUSTMENT

MERIT INCREASE

Merit pay funding (merit budgets) is the result of the consideration of several factors: external salary surveys, economic considerations, market movement, internal/external pay equity, and business performance.

Report onREWARDS

AND RECOGNITIO

N



PROMOTION INCREASE

Based on the positioning of current job skills on the new job.

The skills and knowledge an associate has will also help determine where to position pay.

Two categories may be used: 1. New 2. Qualified

Report onREWARDS

AND RECOGNITIO

N



NEW - is someone who is new to the band and refers to the minimum time normally expected for someone to learn the job and develop the skills

QUALIFIED - is the normal time expected for an associate to demonstrate the requisite skills

SALARY STRUCTURE INCREASE

Report onREWARDS

AND RECOGNITIO

N



FACTORS IN JOB PRICING

Report onREWARDS

AND RECOGNITIO

N



JOB PRICIN

G PROCES

S

Legal requirements

Output (wage and salary structure

Labor supply and demand

Related company policies

e.g. merit ratingJob classification

from job evaluation

Present salary levels in the

company

Company’s capacity to pay

Union demands/CBA provision

Rates in other companies in the

industry and community

SALES INCENTIVE PLAN – total pay is an outcome of performance against assigned, meaningful and achievable goals

MANAGEMENT INCENTIVE PLAN –a variable compensation are effective tools in sharpening and directing behaviors to support company’s objectives

BENEFITS

Report onREWARDS

AND RECOGNITIO

N



BENEFITS• Social Security

created with RA 1161

• Health Insurance / Health Plan

a. Who are covered by the health planb. Outpatient and annual physical

examinationc. Maternity benefitsd. In-patient benefitse. Dental benefitsf. Outpatient medical reimbursementg. Eyeglasses benefits and reimbursement

procedureh. Wellness programs

Report onREWARDS

AND RECOGNITIO

N



• Life Insurancea. Coverageb. Premiumc. Beneficiary

• Retirementa. RA 7641 – Retirement Lawb. 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.

• Car and car-related benefits

Report onREWARDS

AND RECOGNITIO

N



• OTHER BENEFITS

Overtime Meal

Transportation Allowance

Provincial Allowance

Standby Allowance

Report onREWARDS

AND RECOGNITIO

N



RECOGNITION

Companies use recognition programs and contest to focus effort on

tactical objectives and celebrate the success of

teams and individuals.Marilyn P. Allanigue


Report onREWARDS

AND RECOGNITIO

N

Maria Luisa Salonga-Agamata, Ph.D., CESO VDirector IV

Public Assistance and Information Office

Why should you consider joining government service|?

“Malaking suweldo at maalwang buhay man ang kapalit ng mangibang-bansa, mas gusto ko dito sa Pilipinas at makatulong sa mga kababayan natin. Ako po ay naniniwala na mga Pilipino lang ang tunay na makapagpapaunlad sa ating bansa.”-- Pablo Y. Lasprilla, Jr., Aircraft Mechanic II, Philippine Air Force, 2010 Presidential or Lingkod Bayan

Uphold and defend the Constitution;

Lead the nation, promulgate and enforce laws;

Uplift the poor, educate the ignorant, protect the weak, and give honest, efficient and excellent service to the million who rely on government every day; and

To make Philippine public service the best we can give our people.

“Public service is a special calling. It is not for everyone and those who respond to the

call pay a price. The price is submitting to very high standards of professional

conduct; accepting public scrutiny and accountability; learning to hold a public

trust and to put public interests ahead of self; respecting the authority of law and of

democratic will; and entering into a community that values these as the

foundations of good government. The values of public service are both its pride

and its reward.”

- “A Strong Foundation” by the Task Force on Public Service Values and Ethics in Canada

WHAT IS IN STORE FOR PUBLIC SERVANTS?

As a public servant, I have endeavored to be hardworking and selfless, even using my weekends, at times without pay, to help those in need of my expertise. Others

have died for our country; I want to live for my country!”-- Victorio C. Palabay, Associate Professor III, College of Technology, Don Mariano Marcos Memorial State

University, 2009 CSC or Pagasa

Security of tenure/fixed term

Standardized Salary/Benefits

Promotion Structure/Career Pathing

Training and continued education

Recognition

The terms and conditions of employment of all government employees shall be fixed by law;

Those employment terms that are not fixed by law may be subject of negotiation between recognized employees’ association and appropriate gov’t authorities.

Terms and Conditions of Employment

The Congress shall provide for the standardization of compensation of government officials and employees taking into account the nature of responsibilities, and qualifications required for the position concerned.

Compensation

HOW CAN YOU BE EMPLOYED IN GOVERNMENT?

Kung may magagawa ka sa sarili mong pamamaraan, gawin mo na. Kapag pumasok ka sa public service, dapat kalimutan mo ang sarili mo. Sa halip, isipin mo ang kapakanan ng nakararami.”-- Senior Fire Officer I Estanislao N. Temblor, Naguilian Fire Station,Bureau of Fire Protection, 2009 Dangal ng Bayan awardee

QS expresses minimum requirements for a class of position in terms of:

1. education

2. training and experience

3. civil service eligibility

4. physical fitness

5. other qualities required for a successful performance

Qualification Standards

THE CAREER SERVICE EXAMS The passing grade in CS examinations, except for

examinations covered by special laws, shall be at least eighty (80) percent;

Every examinee who obtains a general rating of 80% or over shall be eligible for appointment;

The names of those who pass the bar or board examinations shall be automatically entered in the register of eligibles under Republic Act No. 1080;

Eligibility is automatically granted to honor graduates, subject to the provisions of Presidential Decree No. 907, as amended.

SCOPE OF EXAMINATIONS

For Career Service Professional – In English and Filipino; vocabulary, grammar and correct usage, paragraph organization, reading comprehension, analogy, logic, and numerical reasoning

For Career Service Subprofessional – In English and Filipino; vocabulary, grammar and correct usage, paragraph organization, reading comprehension, spelling, clerical operations, and numerical reasoning

One of the CSC’s priority goals is for all state workers to meet their job competency

standards.

The CSC has launched a competency-based project which is sponsored by the Philippine-

Australia Human Resource and Organizational Development Facility or

PAHRODF.

This project aims to come up with the required competencies of various positions in the public sector. Initially, we have identified core competencies that all CSC officials and

employees should have.

Competency-based HR System in the Philippine civil Service

Career service is characterized by:

1. entrance based on merit and fitness to be determined by practicable competitive examination or based on highly technical qualifications;

2. opportunity for advancement to higher career positions;

3. security of tenure

Positions in the Civil Service are classified into career and non-

career

Classes of positions in the career service:

1. The first level (includes clerical, tradecrafts, and custodial service positions which involve non-professional or sub-professional work in a non-supervisory capacity requiring less than four years of collegiate study);

2. The second level (includes professional, technical, and scientific positions which involve professional, technical or scientific work in supervisory or supervisory capacity requiring four years of collegiate work up to Division Chief; and

3. The third level covers positions in the Career Executive Service

Non-career service includes:

1. Elective officials and their personal or confidential staff;

2. Secretaries and other officials of Cabinet rank who hold their positions at the pleasure of the President and their personal or confidential staff;

3. Chairman and members of commissions and boards with fixed terms of office and their personal or confidential staff;

4. Contractual personnel or those whose employment is in accordance with a special contract to undertake a specific work or job, to be accomplished within a specific period and shall not exceed one year; and

5. Emergency and seasonal personnel.

HOW CAN ONE BE LIKE THE LINGKOD BAYANI OF GOVERNMENT SERVICE

“Being a medical officer and a public servant is not an 8 to 5 profession, but a social obligation that goes beyond the call of duty.”-- Celia Flor C. Brillantes, Medical Officer V,

City Government of Baguio, 2008 Presidential or Lingkod Bayan awardee

Nationwide Search for

Outstanding Public Officials and Employees

The Civil Service Commission (CSC) administers the annual Honor Awards Program (HAP) in accordance with its constitutional mandate to adopt measures to promote morale, efficiency, integrity, responsiveness and courtesy in the civil service, as well as to strengthen the merit and awards systems.

The HONOR AWARDS PROGRAM

The program seeks to recognize and reward state officials and employees for their outstanding contributions and achievements in the delivery of

public service.

The HONOR AWARDS PROGRAM

AWARD CATEGORIES:

Presidential or Lingkod Bayan award

Outstanding Public Officials and Employees or Dangal ng Bayan award

Civil Service Commission Pagasa Award

2010 Presidential or Lingkod Bayan

DR. RENATO U. SOLIDUM JR. Director IV, Philippine Institute of

Volcanology and Seismology, Diliman, Quezon City

As head of the Philippine Institute of Volcanology and Seismology

(PHIVOLCS), he leads government efforts to mitigate the effects of

disasters caused by volcanic eruptions, earthquakes and tsunami.

PHIVOLCS has done such a good job under Dr. Solidum’s helm that it has

gained the support and confidence of international funding agencies. The

assistance provided by these organizations has enabled PHIVOLCS to continually conduct monitoring and mapping of earthquake and volcano related hazards at little to no cost to government. The close collaboration has also helped the agency improve

its capability and equipment.

2008 Dangal ng Bayan WENIFREDA V. SOTO, Midwife

III, Municipal Government of Nabua, Camarines Sur

On countless occasions, she had to brave strong typhoons and

wade through floodwaters in the middle of the night when

summoned to deliver babies.

2007 CSC Pagasa awardee LEOPOLDO B. BATAOIL, Regional Director, Philippine National Police Regional Office 1

Improving the image of the Philippine National Police as guardians of peace and justice is a serious goal and always a work in progress, and this is what former Police Chief Supt. Leopoldo Bataoil, now representative of the 2nd District of Pangasinan had in mind when he implemented socio-economic programs geared towards building meaningful public relations and partnerships in the areas of Caloocan, Malabon, Navotas and Valenzuela (CAMANAVA). His initiatives were ultimately rewarded with the noted decrease in the crime rate, illegal drug dealings, and incidences of robbery, kidnapping, carnapping and snatching. He also spearheaded educational projects such as the Pulis ko, Teacher ko and Edukasyon mo, Sagot ko.

2. Outstanding Public Officials and Employees or Dangal ng Bayan

• Conferred to an individual for performance of extraordinary act or public service and consistent demonstration of exemplary ethical behavior on the basis of the employee’s observation of the eight norms of conduct provided under Republic Act No. 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees.

• Awardees receive a trophy designed and executed by National Artist for Sculpture Napoleon V. Abueva, and a cash prize of P200,000.00.

3. Civil Service Commission or Pagasa Award

• Conferred to an individual or group of individuals for outstanding contribution resulting from an idea or performance which directly benefit more than one department of the government.

• Awardees receive a gold-gilded medallion expertly crafted by the Bangko Sentral ng Pilipinas, a plaque containing the citation and signature of the Chairperson of the Civil Service Commission, and a cash prize of P100,000.00.

“IN THE ARENA OF HUMAN LIFE THE HONORS AND

REWARDS FALL TO THOSE WHO SHOW THEIR GOOD QUALITIES IN ACTION.”

--Aristotle

HOPE I WAS ABLE TO SHARE BENEFICIAL TO ALL OF YOU.

M. ALLANIGUE

Report onREWARDS

AND RECOGNITIO

N



reward and recognition

Recruiting & HR

cash compensation

employee pay

guaranteed cash regular

guaranteed bonuses total

guaranteed cash variable

pay item

outstanding pay companies

guaranteed allowances