BY:NIKITA DHOOTNIKITA BUMB

A PRESENTATION ON

COMPENSATION & BENEFITS

FLOW Meaning Objectives/Purpose Factors affecting compensation Types of wages Compensation Structure in India Important concepts Concept of rewards Employee Benefits Objectives of Employee Benefits Modern Concepts

Meaning

Compensation is a systematic approach to provide monetary as well as non monetary values to employees in exchange of the work performed in the organization.

Total compensation = Direct + Indirect Compensation Base Pay Incentives Benefits

Objectives

Attract talent Retain talent Financial Management Legal requirements Workers participation Ensure equity Control cost Ease of operation

Factors affecting compensation

Compensation

Demand for &

Supply of labour Ability to

Pay

Cost of Living

Productivity of

workersAttraction &

retention

Prevailing Wage rates

Government

Labor Unions

Types of wages

Types of wages

Minimum wage

Fair Wage Living Wage

Importance of an ideal Remuneration

system

Compensation Structure in India

Employee Compensation

Basic wage/sal

ary

Dearness Allowance

Bonus & Other

incentives

Fringe benefits or perquites

Devising a Compensation plan

Important Concepts

Variable Compensation Executive Compensation

Total Rewards…“Anything of value used to attract, retain, or motivate workers”

Concept of Rewards

Related to Employment Intrinsic & Extrinsic rewards Financial & Non-financial rewards Incentives & Non monetary Incentives

Types of Benefits Security: Unemployment

compensation

Life Insurance

Disability Insurance

Early Retirement Options

Pension Plans

Health Health-Care Insurance

Free Centers & Gyms

Medical Care

Psychiatric Counseling

Medical facilities to family

Maternity Leave

Cont…..

Financial Interest free loans

Credit Cards

Tax Assistance

Financial Counseling

Offerings Company car Private cell phone, Laptop usage Free lunch Cafeteria & rest rooms Child care Company accommodations Paid holiday Company transportation Company sponsored study Club memberships

Why company offers benefits?

Cost of living Reward employees Industrial relations Attract & Retain talent Special benefits Substitute for

compensation Makes tension free

Challenges of Remuneration

Remuneration

Skill based Pay

Salary Reviews

Pay Secrecy

Comparable Worth

Employee Participation

Thank you

Queries are welcome

Employee

Satisfaction & Engagement

Global Total Rewards Strategy…..

Business Strategy

Resources Human

Strategy

Organization Culture STRATEGY

TOTAL REWARDS

Work / Life

Compensation

Benefits

Performance & Recognition

Development & Opportunities

Business

Performance& Results

AttractMotivateRetain