Compensation structure

compensation, industrial relations. pay structure, salary structure

1. Compensation Structure Of
Organizations
Presented By:
Renu Rajak
BBA 6
th
Sem

2. Compensation
Compensation is the total amount of the
monetary and non-monetary pay provided to an
employee by an employer in return for work
performed as required.
Compensation also includes payments such
as bonuses, profit sharing, overtime pay,
recognition rewards and checks, and sales
commission.

3. Compensation
According to Milkovitch and Newman in their 2005
book, Compensation, it is “all forms of financial returns and
tangible services and benefits employees receive as part of an
employment relationship.” 
 “Financial returns”: an individual's base salary, as well
as short- and long-term incentives.
 “Tangible services and benefits”: insurance, paid
vacation and sick days, pension plans, and employee
discounts.

4. Objectives
The ultimate goal of compensation planning is to reward
and encourage employees to do well in their jobs. Some of
the objectives are sought to be achieved through effective
compensation planning like:
Entice the employees
Retain the best talent
Ensure equity
Reward new ideas and behaviors
Cost control
Compliance

5. How Is Compensation Used?
Compensation may be used to:
Recruit and retain qualified employees.
Increase or maintain morale/satisfaction.
Reward and encourage peak performance.
Achieve internal and external equity.
Reduce turnover and encourage company loyalty.
Modify (through negotiations) practices of unions.

6. Components Of A Compensation
System
Job description
Job analysis
Job evaluation
Pay structures
Salary surveys
Policies and regulations

7. Labor Legislations
The Employee’s Provident Fund And Miscellaneous
Provisions Act, 1952
The Employee State Insurance Act, 1948
The Equal Remuneration Act, 1938
The Industrial Disputes Act, 1947
The Factory Act, 1948
The Minimum Wages Act, 1948
The Payment of Wages Act, 1936
The Payment of Bonus Act, 1965
The Payment of Gratuity Act, 1972

8. THANK YOUTHANK YOU