compensation management , types of Compensation Management

Compensation Management, Types Of CM , Objectives of CM , Rewards, Wage Levels,Wage Structure,

1. Compensation Management Compensation management is the process of designing and implementing a fair and competitive pay structure for employees. It involves analyzing market rates, job responsibilities, and employee performance to ensure wages are aligned with both the company's budget and employee needs . Presented by Amruta N

2. Types of Compensation 1 Base Salary The fixed, regular payment an employee receives for their role. 2 Bonuses Variable, performance-based pay awarded for meeting or exceeding targets. 3 Benefits Non-monetary compensation such as health insurance, retirement plans, and paid time off. 4 Equity Stock options or shares that give employees an ownership stake in the company.

3. Objectives of Compensation Management Attract Talent Offer competitive pay to recruit and retain the best employees. Motivate Performance Link compensation to individual and organizational goals to drive productivity. Maintain Equity Ensure fair and consistent pay practices across the organization.

4. Rewards Financial Rewards Monetary compensation such as base pay, bonuses, and incentives. Non-Financial Rewards Non-monetary benefits like recognition, training, and work-life balance programs. Intrinsic Rewards Intangible rewards like job satisfaction, sense of purpose, and personal growth. Extrinsic Rewards External rewards provided by the employer, such as pay and promotions.

5. Wage Levels Market Rates Wages must be competitive with industry standards and local labor markets. Job Requirements Wage levels should reflect the skills, education, and experience required for a role. Company Budget Wages must fit within the organization's financial constraints and profitability goals.

6. Wage Structure 1 Job Analysis Evaluate the duties, responsibilities, and requirements of each position. 2 Job Evaluation Assess the relative value and complexity of different jobs within the organization. 3 Salary Ranges Establish pay grades and salary ranges for each job category based on market data.

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