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COMPENSATION - OVERVIEW WHAT IS COMPENSATION? PURPOSES BASES FOR COMPENSATION HOW TO IMPLEMENT? TRENDS.

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Presentation on theme: "COMPENSATION - OVERVIEW WHAT IS COMPENSATION? PURPOSES BASES FOR COMPENSATION HOW TO IMPLEMENT? TRENDS."— Presentation transcript:

1 COMPENSATION - OVERVIEW WHAT IS COMPENSATION? PURPOSES BASES FOR COMPENSATION HOW TO IMPLEMENT? TRENDS

2 WHAT IS COMPENSATION? What do you want from a job? List and rank DIRECT INDIRECT NONFINANCIAL

3 COMPENSATION - OVERVIEW WHAT IS COMPENSATION? PURPOSES BASES FOR COMPENSATION HOW TO IMPLEMENT TRENDS

4 COMPENSATION - PURPOSE MUST HAVE PURPOSE REWARD PAST PERFORMANCE REMAIN COMPETITIVE MAINTAIN SALARY EQUITY SALARY COMPRESSION/INVERSION CONTROL COMP BUDGET ATTRACT NEW EMPLOYEES MOTIVATE PEOPLE

5 HOW TO USE COMPENSATION TO MOTIVATE PAY FOR PERFORMANCE OPTIONS MERIT PAY BONUS COMMISSIONS TEAM/GROUP INCENTIVES PRODUCTIVITY INCREASES 15-35%

6 ISSUES IN PAY FOR PERFORMANCE HOW TO MEASURE PERFORMANCE WHOM TO INCLUDE HOW MUCH TO OFFER WHAT ARE PAY PERIODS?

7 COMPENSATION - OVERVIEW WHAT IS COMPENSATION? PURPOSES BASES FOR COMPENSATION HOW TO IMPLEMENT TRENDS

8 BASES FOR COMPENSATION TRADITIONAL FACTORY PIECEWORK DOOR-TO-DOOR SALARIED

9 COMPENSATION - OVERVIEW WHAT IS COMPENSATION? PURPOSES BASES FOR COMPENSATION HOW TO IMPLEMENT TRENDS

10 HOW TO IMPLEMENT - DETERMINING WAGES INTERNAL DETERMINANTS EXTERNAL DETERMINANTS

11 INTERNAL DETERMINANTS POLICY AND GOALS JOB WORTH EMPLOYEES RELATIVE WORTH EMPLOYER ABILITY TO PAY

12 JOB EVALUATION SYSTEMS JOB RANKING JOB CLASSIFICATION POINT SYSTEM

13 EXTERNAL DETERMINANTS LABOUR MARKET CONDITIONS COST OF LIVING COLLECTIVE BARGAINING LEGAL REQUIREMENTS

14 EXTERNAL EQUITY WAGE AND SALARY SURVEYS

15 COMPENSATION - OVERVIEW WHAT IS COMPENSATION? PURPOSES BASES FOR COMPENSATION HOW TO IMPLEMENT TRENDS

16 TRENDS IN COMPENSATION SKILL-BASED PAY BROADBANDING INCENTIVE PLANS


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