Total Compensation Your Employability Skills Program
Components of Total Compensation Direct Compensation (Pay) Indirect Compensation (Benefits)
Types of Direct Compensation Base Pay Variable Pay
Behind the scenes of base pay Job Analysis Job Descriptions Job Evaluations Market Pricing Base Pay Systems
Job Analysis Gathering, analyzing and synthesizing information about jobs Methods used for Job Analysis Observation Interview Questionnaire Work diaries or logs Positional analysis questionnaires Functional job analysis
Job Descriptions Summary Essential Functions Nonessential Functions Knowledge, Skills, Abilities, and other qualifications Supervisory Responsibilities Working Conditions Success Factors
Job Evaluation Determining the value of a job in comparison to other jobs “Methods of job evaluation” Ranking Classification Factor Comparison Point Factor
Market Pricing A formal process for determining the external value of jobs Many companies choose to do both job evaluation and market pricing to come up with the appropriate value of a job.
Base Pay Systems Flat-rate Time-based Performance-based Productivity-based Competency- or skill based
Variable Pay Profit Sharing Profit Gain Sharing Cost Quality Production efficiency Bonuses
Employment Benefits Understanding your benefits as you begin or change employment…
The Importance of Benefit Consideration Represents 30% or more of cost of employment Wise utilization of available benefits may prevent much greater personal expense. Benefits may determine the difference between prospective employers
Monthly Premium Contribution (Per Employee) (Single Coverage/ Family Coverage) Northeast Region Indemnity…………. $46/$138 HMO………………. $27/$89 PPO……………….. $31/$108 POS……………….. $31/$103 (KPMG)
Monthly Premium Employer Cost PPO POS HMO IND Individual $242 $196 $189 $283 Family$587 $475 $458 $668
Time Off Attendance Standards Call Responsibilities Waiting Period – Flexibility PTO vs. Traditional Holidays Leave Absence
Time Off (cont’d) Other considerations Bereavement Leave Time Off without Pay Benevolent Sharing of Time
Retirement Type of Programs Available Defined Benefit Defined Contribution Participation Requirements Vesting Schedule Recent or Anticipated Changes
Retirement Benefits Pension Plans (Defined Benefit) Formula Based on Year of Service and/or Average Monthly Salary Requires Age Length of Service and Hours Worked Minimums Saving Plans (Defined Contribution) 401(K) Loan Programs Portability
Miscellaneous Benefits Education Clothing/Uniforms Child Care/Elder Care Group Insurance/Income Protection Individual Financial Counseling College Planning Assistance Home Purchase/Legal Assistance Subsidized Cafeterias/take home meals Product Purchase discounts
Education Tuition Reimbursement Eligibility Qualifications Limitations Career/Personal Development Training
Income Protection Short Term Disability Workers’ Compensation Long Term Disability Extended Care/Long Term Care Insurance Life Insurance (Supplemental & Dependent) Reduction in Force Policy
Simplifying The Issue “No Cost-No Choice” Benefits VS. “Cost-Choice” Benefits What is Negotiable? Potential “Deal-breakers”
No Cost- No Choice Benefits Basic Life Insurance Basic Accidental Death & Dismemberment Insurance Business Travel Accident Insurance Recreational Activities Accident Insurance Long Term Disability Employee Assistance PTO
Cost- Choice Benefits Medical Coverage Prescription Drug Coverage Dental Coverage Vision Coverage Spending Accounts Supplemental Life Dependent Life Short Term Disability
What If ’s Change Hours Leave Employment Become Disabled Go on Paid or Unpaid LOA Die
Additional Information Summary Plan Descriptions Enrollment Policies Changes to Enrollment Non – Payment Consequences
Obtaining & Using Information Obtain Information Printed Plan Descriptions Consult with HR or Benefits Representative Study & Compare Information Construct comparison charts Consult with independent source - research