Managing Human Resources Part 2

Learning Goals Describe compensation and benefit plans Recognize the goals of performance management

Compensation Compensation is the amount of money paid to an employee for work performed Must be attractive enough to ensure position being filled Salary and wages are direct payment of money to an employee for work performed Benefits is compensation in forms other than direct payment Ex: Insurance, vacations, health and fitness programs

Compensation Methods Time wage: pays the employee a specific amount of money for each hour worked Straight salary: pays a specific amount of money Simple systems, based on time not amount or quality of work done Incentive systems connect the amount of compensation to the quality or quantity of an employee’s performance.

Incentive Systems Commission: Employee is paid percentage of sales/objectives. Piece rate: an employee receives a specific amount for each unit of work produced Base plus incentive: combines a wage or salary with an additional amount based on the employee’s performance. Profit sharing: regular compensation plus a share of the profits earned by a company.

Employee Benefits Federal laws require: Full Time Overtime pay Social Security Medicare Contributions to funds for injured employees and for unemployed workers Full Time Insurance plans

Employee Benefits cont. Other benefits offered: Retirement programs Employee savings programs Personal or sick days off Flexible work schedules Cafeteria plan allocates a certain amount of money to each employee that can be spent on benefits. (HSA, FSA)

Employee Evaluation Managers complete evaluation forms Some companies will ask co-workers to provide feedback that is considered in the evaluation process Some companies ask employees to complete a self- evaluation. After the evaluation is completed than a conference is scheduled to review and discuss performance.

Promotions, Transfers, and Terminations Promotion: advancement of an employee to a position with greater responsibility Transfer: assignment of an employee to another job in the company with a similar level of responsibility. New challenge or a better match of skills Termination: ends the relationship with the employee and the company Discharge or a layoff

Great places to work Team #1 – Gorilla Glue Team #2 – Medpace Team #3 – Alliance Data Team #4– Fidelity Investments Team #5 – gyro Team #6 – Total Quality Logistics