1. ESTABLISHING REWARDS AND PAY PLANS

2. ESTABLISHING REWARDS AND PAY PLANS
INTRODUCTION
TYPES OF EMPLOYEE REWARDS
WHAT IS COMPENSATION ADMINISTRATION?
JOB EVALUTION AND THE PAY STRUCTURE
SOME SPECIAL CASES OF COMPENSATION
EXECUTIVE COMPENSATION PROGRAMS
INTERNATIONAL COMPENSATION
SUMMARY / QUESTION ANSWER

3. TYPES OF EMPLOYEE REWARDS
Intrinsic versus Extrinsic Rewards.
Financial versus Non-financial Rewards.
Performance-based versus Membership-based Rewards.

4. WHAT IS COMPENSATION ADMINISTRATION?
Job Evaluation
Rewards
Goals of Compensation Administration
Government Influence on Compensation Administration
- Fair Labour Standards Act
- The Civil Rights and Equal Pay Acts

5. JOB EVALUTION AND THE PAY STRUCTURE
What is Job Evaluation?
Isolating Job Evaluation Criteria
Methods of Job Evaluation
- Ordering Method
- Classification Method
- point Method
Establishing the Pay Structure
- Compensation Surveys
- Wage Curves
- The Wage Structure

6. SOME SPECIAL CASES OF COMPENSATION
Incentive Compensation Plans
- Individual Incentives
- Group Incentives
- Plant-wide Incentive
Paying for Performance
Team-based Compensation

7. EXECUTIVE COMPENSATION PROGRAMS
Salaries of Top Managers
Supplemental Financial Compensation
Supplemental Non-financial Compensation: Perquisites

8. INTERNATIONAL COMPENSATION
Base Pay
Differentials
Incentives
Assistance Programs

9. JOB EVALUTION
Job Evaluation is the process whereby an organization systematically establishes its compensation program. In this process, jobs are compared in order to arrive at each job’s appropriate worth within the organization.

10. Employees exchange work for rewards.
Probably the most important rewards, and indeed the most obvious, is money.
But all employees don’t earn the same amount of money.

11. THE GOALS OF COMPENSATION ADMINISTRATION
The goals of compensation administration are to design a cost-effective pay structure that will attract, motivate, and retain competent employees.
It should also be one that will be perceived as fair by employees.
Fairness is a term that frequently arises in the administration of an organization's compensation program.
Organizations generally seek to pay the least that they have to in order to minimize costs, so fairness means a wage or salary that is adequate for the demands and requirements of the job. Fairness is a two-way street.

12. WHAT IS JOB EVALUTION?
Job analysis is the process of describing the duties of a job, authority relationship, skills required, conditions of work, and additional relevant information.
Data generated from job analysis could be used to develop job descriptions and specifications, as well as to do job evaluations.
By Job evaluation, we mean using the information in job analysis to systematically determine the value of each job in relation to all jobs within the organization. Job evaluation seeks to rank all the jobs in the organization and place them in a hierarchy that reflects the relative worth of each.
Job evaluation assumes normal performance of the job by a typical worker. So, in effect, the process ignores individual abilities or the performance of the jobholder.
The ranking that results from job evaluation is the means to an end, not an end in itself. It should be used to determine the organization's pay structure.

13. PAYING FOR PERFRORMANCE
Pay-for-performance programs are compensation plans that pay employees on the basis of some performance measure.
Piecework plans, gain sharing, wage incentive plans, profit sharing, and lump sum bonuses are examples of pay-for-performance programs.
What differentiates these forms of pay from the more traditional compensation plans is that instead of paying an employee for time on the job, pay is adjusted to reflect some performance measure.
These performance measures might include such things as individual productivity, team or work group productivity, departmental productivity, or the overall organization's profits for a given period.
Performance-based compensation is probably most compatible with demonstrating to employees that a strong relationship exists between their performance and the rewards they receive.

14. TEAM -BASED COMPENASATION
In today’s dynamic organization, much more emphasis has been placed on involving employees in most aspects of the job that affect them.
When organizations group employees into teams and empower them to meet their goals, teams reap the benefits of their productive effort.
The is, team-based compensation plans are tied to team-based performance.
If goals were achieved, then all shared in the “Glory”. If any of the managers failed, the entire team would not receive a dime of bonus money. The concept is now being driven down to the employee population!
Under a team-based compensation plan, team members who have worked on achieving and in many cases, exceeding established goals often share equally in the rewards (although, in the truest sense, teams allocate their own rewards).
Providing for fair treatment of each team member, group cohesiveness is encouraged.

15. SUMMARY Explain the various classifications of rewards.
Discuss why some rewards are considered membership based.
Define the goal of compensation administration.
Discuss job evaluation and its three basic approaches.
Explain the evaluation of the final wage structure.
Describe competency-based compensation programs.
Discuss why executives are paid significantly higher salaries than other employees in an organization.
Identify what is meant by the balance sheet approach to international compensation.

16. PAY-FOR-PERFORMANCE
Employees should have a clear understanding of what they’re attempting to accomplish. Manager needs to see that this task is achieved by helping employees set their work goals.
While this appears to be common sense, it’s not always the case. Setting pay-for-performance objectives is a skill that every manager needs to perfect. You can better facilitate this process by following these guidelines.
- Identify an employee’s key job tasks.
- Establish specific and challenging goals for each key
task.
- Allow the employee to actively participate.
- Prioritize goals.
- Built in feedback mechanisms to assess goal.
- Link rewards to goal attainment.

17. FACTOR 1ST 2ND 3RD 4TH 5TH DEGREE DEGREE DEGREE DEGREE DEGREE
Skill
1. Education
2. Problem Solving
Responsibility
1. Safety of others
2. Work of others
2. Problem Solving:
This factor examination the types of problem dealt with in your job. Indicate the one level that is most representative of the majority of your job responsibilities.
Degree 1: Actions are performed in a set order per written or verbal instruction.
Problems are referred to supervisor.
Degree 2: Solves routine problems and makes various choices regarding the order in which the work is performed within standard practices. May obtain information from varied sources..
Degree 3: Solves varied problems that require general knowledge of company policies and procedures applicable with in area of responsibility. Decisions made based on a choice from established alternatives. Expected to act within standards and established procedures.
Degree 4: Requires analytical judgment, initiative, or innovation in dealing with complex problems or situations. Evaluation not easy because there is little precedent or information may be incomplete.
Degree 5: Plans, delegates, coordinates, and/or implements complex tasks involving new or constantly changing problems or situations involves the origination of new technologies or policies for programs or projects. Actions limited only by company policies and budgets.
Source: Material reprinted with permission of The Dartnell Corporation, Chicago, IL

18. A WAGE CURVE
9.75
9.50
9.25
9.00
8.75
8.50
8.25
8.00
7.75
7.50
7.25
7.00
6.75
6.50
6.25
6.00
. .

19. A SAMPLE WAGE STRUCTURE
9.50
9.25
9.00
8.75
8.50
8.25
8.00
7.75
7.50
7.25
7.00
6.75
6.50
6.25
6.00
5.75
5.50
5.25
5.00
4.75
Grade 6
Grade 5
Grade 4
Grade 3
Grade 2
Grade 1

21. EMPLOYEE BENEFITS INTRODUCTION LEGALLY REQUIRED BENEFITS
VOULNTARY BENEFITS
PAID TIME OFF
SURVIVOR BENEFITS
FAMILY-FRIEND BENEFITS
AN INTEGRATIVE PERESPECTIVE ON EMPLOYEE BENEFITS
RETIRMENT PROGRAMS
SUMMARY / QUESTION ANSWER
The Costs of Providing Employee Benefit
Contemporary Benefits Offerings
Social Security
Unemployment Compensation
Worker’s Compensation
Health Insurance
- Traditional Insurance
- Health Maintenance Organization
- Preferred Provider Organizations
- Employer-Operated Coverage
- Health Insurance Continuation
Vacation and Holiday Leave
Disability Insurance
Group Term Life Insurance
Travel Insurance
The Service Side of Benefit
Flexible Spending Accounts
Modular Plans
Core-Plus Options Plans
Defined benefit Plans
Defined Contribution Plans
- Money Purchase Pension Plan
- Profit-Sharing Plans
- Individuals Retirement Accounts
- Roth IRAs
- 401(K)s

22. The Costs of Providing Employee Benefits
INTRODUCTION
The Costs of Providing Employee Benefits
Contemporary Benefits Offerings

23. LEGALLY REQUIRED BENEFITS
Social Security
Unemployment Compensation
Workers’ Compensation

24. - Traditional Health Insurance
VOLUNTARY BENEFITS
Health Insurance
- Traditional Health Insurance
- Health Maintenance Organizations
- Preferred Provider Organizations
- Employer-Operated Coverage
- Health Insurance Continuation

25. Defined Contribution Plans - Money Purchase Pension Plan
RETIREMENT PROGRAMS
Defined Benefit Plans
Defined Contribution Plans
- Money Purchase Pension Plan
- Profit-Sharing Plans
- Individuals Retirement Accounts
- Roth IRAs
- 401(k)s

26. Vacation and Holiday Leave Disability Insurance Programs
PAID TIME OFF
Vacation and Holiday Leave
Disability Insurance Programs

27. SURVIVOR BENEFITS
Group Term Life Insurance
Travel Insurance

28. FAMILY-FRIENDLY BENEFITS
The Service Side of Benefits

29. AN INTEGRATIVE PRESPECTIVE ON EMPLOYEE BENEFITS
Flexible Spending Accounts
Modular Plans
Core-Plus Options Plans

30. Thank You……….!