1. Kulwadee abhicharttibutra
Compensation
Kulwadee abhicharttibutra

2. 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

3. 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

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

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

6. 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

7. 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

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

9. 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

10. 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

11. 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

12. Questions ?