Documente Academic
Documente Profesional
Documente Cultură
COMPENSATION/REWARD SYSTEM
Compensation/Reward system
• Base Pay
• Overtime Pay
• Bonus, Profit Sharing
• Travel/Meal/Housing Allowance
• Benefits including: dental, insurance, medical, vacation, leaves,
retirement, taxes...
MAJOR PHASES OF COMPENSATION
MANAGEMENT
Phase I
Identify & study jobs Job
Job analysis
analysis
Phase II
Internal equity
Job
Job evaluation
evaluation
Job
Job ranking
ranking Job
Job grading
grading Factor
Factor comparison
comparison Point
Point system
system
Phase III
External Equity Wage
Wage&&salary
salary surveys
surveys
Dept.of
Dept.of labour
labour Employer association Professional
Employer association association Self-conducted
Professional association Self-conducted
surveys
surveys
Phase IV Pricing
Pricing jobs
jobs
Matching Internal
& External worth
Job
Job evaluation
evaluation Match
Match Labour
Labourmarket
market worth
worth
Rate
Raterange
range for
for each
each job
job
Wage and salary determination
Job Descriptions
Job Analysis
Job Evaluation
minimum salary/wage)
Salary Surveys
1. External Factors
Demand and supply
Cost of living
Trade unions bargaining power
Government legislation
Prevailing market rates
1. Internal Factors
Ability to pay
Job requirements
Managerial strategy
The employee
Equity compensation
Equity compensation is non-cash compensation that
Fringe benefits can also include but are not limited to: insurance
It is reviewed annually
Social security