Kulwadee abhicharttibutra Compensation Kulwadee abhicharttibutra

Compensation The combination of  money and other benefit (= rewards) that an employee receives for doing their job Sum of direct benefits (such as salary, allowances, bonus, commission) and indirect benefits (such as insurance, pension plans, vacations) that an employee receives from an employer Reward something given in exchange for good behavior or good work

Indirect pay/ Benefits Total compensation Base pay Pay incentives Indirect pay/ Benefits Fixed pay for regular basis(salary, weekly monthly pay) Reward for good performance (bonus, profit sharing) Health insurance, vacations Perquisites for upper level: company car, special parking

Base compensation Wage calculated at an hourly rate (overtime) Salary calculated at an hourly rate

Different rates of pay Depends on Individual difference in experience, skills, and performance Expectations seniority, higher performance obtain higher pay

People-based pay Skill based pay: pay on the basis of how many skills employees have or how many jobs they can do. Knowledge based pay: rewards employees for acquiring additional knowledge Credential base pay: rests on fact that individual must have diploma or license from professional or regulatory agency Competency based pay: combination of skill based pay, knowledge based pay, credential base pay

When to adjust pay At some point during the year, annually Through 4 types General, for all employee Merit, based on indicator of job performance A cost-of–living adjustment Seniority

Pay incentives Pay for performance :Type Individual Team Organization Merit pay Bonus Profit sharing Award Stock plans Piece rate

Pay for performance: challenges Link pay and performance appropriately Promote the belief that performance makes difference Use multiple layer of rewards Increase employee involvement Use motivation and non-financial incentives

Benefits/ indirect compensation Legally required benefits Health insurance/ coinsurance Retirement Paid time off: vacation, sick leave, maternity and parental leave Copay Employee services Flexible benefit program

Compensation policy Adequate meet minimal requirement of government and union Equitable paid fairly in line with her effort, ability and training Balanced pay, benefit and other rewards should be reasonable package Cost-effectiveness not too excessive, organization can afford

Questions ?