Transcript Compensation Slides.ppt

COMPENSATION - OVERVIEW
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WHAT IS COMPENSATION?
PURPOSES
BASES FOR COMPENSATION
HOW TO IMPLEMENT?
TRENDS
WHAT IS COMPENSATION?
• What do you want from a job?
List and rank
• DIRECT
• INDIRECT
• NONFINANCIAL
COMPENSATION - OVERVIEW
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WHAT IS COMPENSATION?
PURPOSES
BASES FOR COMPENSATION
HOW TO IMPLEMENT
TRENDS
COMPENSATION PURPOSE
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MUST HAVE PURPOSE
REWARD PAST PERFORMANCE
REMAIN COMPETITIVE
MAINTAIN SALARY EQUITY
SALARY COMPRESSION/INVERSION
• CONTROL COMP BUDGET
• ATTRACT NEW EMPLOYEES
• MOTIVATE PEOPLE
HOW TO USE COMPENSATION
TO MOTIVATE
• PAY FOR PERFORMANCE
• OPTIONS
MERIT PAY
BONUS
COMMISSIONS
TEAM/GROUP INCENTIVES
• PRODUCTIVITY INCREASES
15-35%
ISSUES IN
PAY FOR PERFORMANCE
• HOW TO MEASURE PERFORMANCE
• WHOM TO INCLUDE
• HOW MUCH TO OFFER
• WHAT ARE PAY PERIODS?
COMPENSATION - OVERVIEW
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WHAT IS COMPENSATION?
PURPOSES
BASES FOR COMPENSATION
HOW TO IMPLEMENT
TRENDS
BASES FOR COMPENSATION
• TRADITIONAL
FACTORY
• PIECEWORK
DOOR-TO-DOOR
• SALARIED
COMPENSATION - OVERVIEW
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WHAT IS COMPENSATION?
PURPOSES
BASES FOR COMPENSATION
HOW TO IMPLEMENT
TRENDS
HOW TO IMPLEMENT DETERMINING WAGES
• INTERNAL DETERMINANTS
• EXTERNAL DETERMINANTS
INTERNAL DETERMINANTS
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POLICY AND GOALS
JOB WORTH
EMPLOYEES RELATIVE WORTH
EMPLOYER ABILITY TO PAY
JOB EVALUATION SYSTEMS
• JOB RANKING
• JOB CLASSIFICATION
POINT SYSTEM
EXTERNAL DETERMINANTS
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LABOUR MARKET CONDITIONS
COST OF LIVING
COLLECTIVE BARGAINING
LEGAL REQUIREMENTS
EXTERNAL EQUITY
• WAGE AND SALARY SURVEYS
COMPENSATION - OVERVIEW
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WHAT IS COMPENSATION?
PURPOSES
BASES FOR COMPENSATION
HOW TO IMPLEMENT
TRENDS
TRENDS IN COMPENSATION
• SKILL-BASED PAY
• BROADBANDING
• INCENTIVE PLANS