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