Total Compensation

YourEmployability

SkillsProgram

Components of Total Compensation

• Direct Compensation (Pay)

• Indirect Compensation (Benefits)

Types of Direct Compensation

• Base Pay

• Variable Pay

Behind the scenes of base pay

• Job Analysis

• Job Descriptions

• Job Evaluations

• Market Pricing

• Base Pay Systems

Job Analysis

• Gathering, analyzing and synthesizing information about jobs

• Methods used for Job Analysis• Observation• Interview• Questionnaire• Work diaries or logs• Positional analysis questionnaires• Functional job analysis

Job Descriptions

• Summary• Essential Functions• Nonessential Functions• Knowledge, Skills, Abilities, and other

qualifications• Supervisory Responsibilities• Working Conditions• Success Factors

Job Evaluation

• Determining the value of a job in comparison to other jobs

• “Methods of job evaluation”• Ranking • Classification• Factor Comparison• Point Factor

Market Pricing

• A formal process for determining the external value of jobs

Many companies choose to do both job evaluation and market pricing to come up with the appropriate value of a job.

Base Pay Systems

• Flat-rate

• Time-based

• Performance-based

• Productivity-based

• Competency- or skill based

Variable Pay

• Profit Sharing• Profit

• Gain Sharing• Cost• Quality• Production efficiency

• Bonuses

Employment Benefits

Understanding your benefits as you begin or change

employment…

The Importance of Benefit Consideration

• Represents 30% or more of cost of employment

• Wise utilization of available benefits may prevent much greater personal expense.

• Benefits may determine the difference between prospective employers

Monthly Premium Contribution(Per Employee)

(Single Coverage/ Family Coverage)Northeast Region

Indemnity…………. $46/$138

HMO………………. $27/$89

PPO……………….. $31/$108

POS……………….. $31/$103(KPMG)

Monthly Premium Employer Cost

PPO POS HMO IND

Individual $242 $196 $189 $283

Family $587 $475 $458 $668

Time Off

• Attendance Standards

• Call Responsibilities

• Waiting Period – Flexibility

• PTO vs. Traditional

• Holidays

• Leave Absence

Time Off (cont’d)

• Other considerations• Bereavement Leave• Time Off without Pay• Benevolent Sharing of Time

Retirement

• Type of Programs Available• Defined Benefit• Defined Contribution

• Participation Requirements

• Vesting Schedule

• Recent or Anticipated Changes

Retirement Benefits

• Pension Plans (Defined Benefit)• Formula Based on Year of Service and/or

Average Monthly Salary• Requires Age Length of Service and Hours

Worked Minimums

• Saving Plans (Defined Contribution)• 401(K)• Loan Programs• Portability

Miscellaneous Benefits

• Education• Clothing/Uniforms• Child Care/Elder Care• Group Insurance/Income Protection• Individual Financial Counseling• College Planning Assistance• Home Purchase/Legal Assistance• Subsidized Cafeterias/take home meals• Product Purchase discounts

Education

• Tuition Reimbursement• Eligibility• Qualifications• Limitations

• Career/Personal Development

• Training

Income Protection

• Short Term Disability• Workers’ Compensation• Long Term Disability• Extended Care/Long Term Care

Insurance• Life Insurance (Supplemental &

Dependent)• Reduction in Force Policy

Simplifying The Issue

• “No Cost-No Choice” BenefitsVS.

“Cost-Choice” Benefits• What is Negotiable?• Potential “Deal-breakers”

No Cost- No Choice Benefits

• Basic Life Insurance• Basic Accidental Death & Dismemberment

Insurance• Business Travel Accident Insurance• Recreational Activities Accident Insurance• Long Term Disability• Employee Assistance• PTO

Cost- Choice Benefits

• Medical Coverage• Prescription Drug Coverage• Dental Coverage• Vision Coverage• Spending Accounts• Supplemental Life• Dependent Life• Short Term Disability

What If ’s

• Change Hours

• Leave Employment

• Become Disabled

• Go on Paid or Unpaid LOA

• Die

Additional Information

• Summary Plan Descriptions

• Enrollment Policies

• Changes to Enrollment

• Non – Payment Consequences

Obtaining & Using Information

• Obtain Information• Printed Plan Descriptions• Consult with HR or Benefits Representative

• Study & Compare Information• Construct comparison charts• Consult with independent source - research