COMPENSATION MANAGEMENT IN HRM PRESENTATION

COMPENSATION MANAGEMENT IN HRM PRESENTATION

1. COMPENSATION MANAGEMENT Compensation is one of the prime needs of all individuals. It is an important motivating factor. Compensation management consists of fulfilling government regulations, statutory compliances. There are various methods of regarding employees for their effort.

2. Compensation strategy

3. Today’s Modern Compensation Systems Today the compensation systems are designed in alignment with the business goals and strategies. The employees are expected to work and take their own decisions. Authority is being delegated. Employees feel secure and valued in the organization. Organizations offer monetary and non-monetary benefits to attract and retain the best talents in the competitive environment. Some of the benefits are special allowances like mobile, company's vehicle; house rent allowances; statutory leaves etc

4. There are four main steps to develop a compensation plan: Assessing Total Compensation Implications ( The implications can also be assessed related to the: Employees,Extent of choice being provided to employees, Role of pay in the HR strategy, Union management preferences Plan a comprehensive compensation strategy Implementation Review

5. organization's compensation system Pay for work and performance Pay for time not worked Disability income continuum Deferred Income Health Accidents liability protection Income equivalent payments

6. Types Of Compensation Direct Compensation Indirect Compensation The type of compensation depends on several factors like: Type of work Budget of the company Compensation strategy Size and type of company Miscellaneous

7. The various types of direct compensation include:

8. The various types of INdirect compensation include:

9. Compensation Process

10. Motivation And Fringe Benefits “fringe benefits are the additional benefits given in addition to the wages and salary”.

11. Following are some forms of fringe benefits given by employers: Loan service awards in cash and kind Employment opportunities for children of employees Thrift societies for payment of loans Housing schemes at lower rates Educational assistance, like fees sponsorship to meritorious students

12. Transport facilities like pick and drop, cab, etc Food vouchers at office canteens Crèches for children Medical and health centers in the company’s campus Health club membership

13. Glossary Broadband - It is a procedure of putting jobs of similar nature and capabilities across different verticals in one group. It is advancement to salary grades and aims at reducing hierarchical levels in the organization. Crèches - These are kind of nurseries where children can stay for short times. Companies provide this facility to their female employee who has small children who cannot be left at home

14. Salary Survey - It is a study of the current market rates for wages of different categories of employees. It helps in determining equitable salaries for employee. Fringe benefits - This refers to the additional advantage being given to employees other than their regular income. It usually includes perks like company car, paid holidays, subsidized meals, education assistance. These are usually associated with the level of job and may be taxable. Retrenchment - It is the technique of reducing the excess workforce from the organization. There are some legal implications like retrenchment has to be cases other than that of punishment. It is a strategic decision taken by the management.