Chapter 24 Rewarding and Developing Employees ©2008 Thomson/South-Western Chapter 24 Rewarding and Developing Employees

Lesson 24.1 Compensation Planning Goals Describe several types of compensation systems and the reasons each is used. Discuss important factors that affect pay levels in a business. Chapter 24 Rewarding and Developing Employees

Chapter 24 Rewarding and Developing Employees Compensation Plans Time plan — pays a certain amount for a specified period of time worked Performance plan — pays a percentage of volume of sales for which employee is possible Commission plan Piece-rate plan Combination plan — provides a small wage or salary and adds incentive pay based on performance Bonus Chapter 24 Rewarding and Developing Employees

Chapter 24 Rewarding and Developing Employees Legal Requirements Minimum wage — it is illegal for employers to pay less than an identified pay rate to any employee Compensation discrimination — employers must follow laws establishing fair levels of compensation Chapter 24 Rewarding and Developing Employees

Lesson 24.2 Employee Benefits Goals Recognize how employee benefits add to the total compensation received. Describe several ways companies can improve HR services while controlling costs. Chapter 24 Rewarding and Developing Employees

Chapter 24 Rewarding and Developing Employees Employee Benefits Customary benefits Insurance — health, vision, dental, life, disability Retirement plans Pension plans Vacations and time off Benefits required by federal and state laws Chapter 24 Rewarding and Developing Employees

Chapter 24 Rewarding and Developing Employees Employee Benefits Hours of work Flex-time Job sharing Other benefits Profit-sharing plan Cafeteria plan Chapter 24 Rewarding and Developing Employees

Chapter 24 Rewarding and Developing Employees Improving HR Services Use of technology Outsourcing services Increasing value of human resources Employment laws Equal opportunity in employment Improvements in the way HR services are provided and managed Chapter 24 Rewarding and Developing Employees

Lesson 24.3 Improving Employee Performance Goals Describe the procedures for reviewing employee performance. Discuss several important training needs of businesses. Chapter 24 Rewarding and Developing Employees

Employee Performance Review Performance review — process of assessing how well employees are doing their jobs Formal reviews — once or twice a year, including review conference Informal reviews — informal feedback, support, and encouragement Chapter 24 Rewarding and Developing Employees

Planning Training and Development Formal training — carefully planned instruction with a specific curriculum and instructor Informal training — unstructured and unplanned instruction developed for specific situations or individuals Chapter 24 Rewarding and Developing Employees

Chapter 24 Rewarding and Developing Employees Types of Training Basic skills Occupational safety Employee health and wellness New-employee orientation Awareness Communication, employee development, and quality Job skills Chapter 24 Rewarding and Developing Employees