Administering the Compensation Program

8/3/2019 Administering the Compensation Program

1/14

Administering the Compensation Program


2/14

Objectives

Maintain internal equity Within the parameters ofdiscipline, function, and responsibilities, employees shallbe paid similarly for similar work.

Maintain external competitiveness through a salarystructure .

For higher education related positions.

Base salary increase decisions on recognizingperformance, retaining our best employees, maintainingmarket alignment and supporting internal equity.

Create compensation structures and strategies thatrespond to and support organization priorities, changes,and needs.

For all other staff positions, the market is based on thelocal, regional, and/or national markets, depending on the

position.


3/14

Process


4/14

Classification of rewards

Total compensation

Financial(extrinsic rewards)

Non -Financial(intrinsic rewards)

Satisfactionderived from jobIndirectDirect

Praise andRewards


5/14

Components of Financial Compensation

Direct

Base pay

Wages Salaries

Benefits

Variable Pay

Incentives

-Individual-Group/team-organizational

voluntaryMandatory

SecurityPlans

PensionsEducationalassistance

Recreationalprograms

Vacations Breaks Holidays

Provident FundGratuityMaternity LeaveHealth plansMedical leave

Indirect


6/14

Base pay

The direct financial compensation an individualreceives based on the time worked

Two bases of calculation

- Hourly/wage: payment for the number of hoursworked

- Salaried : receive consistent payments at theend of specific period regardless of number of

hours worked


7/14

Variable pay - any plan that ties pay to productivity or

profitability.

(i.e)The standard by which managers tiecompensation to employee effort and

performance.- it is linked to individual, group, or organizational

performance and not to time worked

Incentive Pay Programs

Establish a performance threshold to qualify forincentive payments.

Emphasize a shared focus on organizationalobjectives.

Create shared commitment in that every


8/14

Types of incentives

Individual Incentives

Group/team Incentives

Organizational Incentives


9/14

VOLUNTARY BENEFITS Educational benefits

- Employees spouse education assistance(Motorola on international assignments ).

- ONGC,NIIT ,ADITYA BIRLA GROUP, HLLsabbaticals (paid/non-paid) are provided toemployees who wish to study.

- Meritorious Children of employees are provided

opportunity of higher education with loan benefitsin BPCL, CPCL etc


10/14

Family

- Paternity leave in HLL, HCL Tech, Yes Bank,Genpact etc.,

- Wedding anniversary allowance in NIIT, SPIC etc.,- Joyful Working Team and Happy MomentsBoard- LG

Electronics

- Family day at office- Bharti telecom.


11/14

Non financial compensation Components

1. Intrinsic motivators are worthwhile as financialpackage

2. Organization reward high performing employees

3. Psychological rewards that employees receivein recognition of their skills and contributions


12/14

Types

Awards

Often used to recognize productivity gains,special contributions or achievements, andservice to the organization.

Employees feel appreciated when employers tieawards to performance and deliver awards in atimely, sincere and specific way.

Rooms of offices are named after the employees

in NIIT Recognition awards

Recognition has a positive impact onperformance, either alone or in conjunction with

financial rewards


13/14

Day-to-day recognition from supervisors, peers,and team members is important.

Best performer of the month awards in Blue Dart,ALACTEL,XANSA etc.,

Service awards

- Award for the length of service and exactly not onperformance

- IBM: thanks award- IDEA: appreciation card


14/14

Case Study on TCS TCS was established in 1968 with its

headquarters in Mumbai.

It was formed as a division of Tata Sons Limited(TSL), one of India's largest business

conglomerates, and was called 'Tata ComputerCenter.' F C Kohli (Kohli) was appointed as thefirst General Manager in 1969.

Administering the Compensation Program

Documents

Transcript of Administering the Compensation Program