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Compensation and Benefits

Presented by B N Nagaraj

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Compensation

What is meant by Compensation

What are the constituents which goes into

Compensation

How is it determined

How is it implemented

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What is Compensation

To compensate in any manner for the

service rendered

It might be in Cash or Kind

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Constituents of Compensation

In cash might be :

Salary and Wage

Bonus

LTA

Incentives

Reimbursements

Performance pay/ Variable pay

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Constituents of Compensation

In Kind or Perks

Welfare Schemes

Holiday Packages

Leave and Holidays

Fringe Benefits which goes along with the

Positions

ESOPs

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Constituents of Compensation

Examples

Company Leased Accommodations.

Company Car

Free education for Children

Club Facilities

Recreation facility

Working from home

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Constituents of Compensation

Contd :-

Good working Atmosphere

Equal rights

Rewards (Annual, long service, Best employee etc) Annual get together

Position and Authority

Insurances

Training and Development (internal / external / abroad)

Career Growth Canteen

Loans and Advances

Rehabilitations

Retirement Benefits

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Why do we do all these ?

Business is changing

Business Scenario is changing

People expectations are changing

Stiff Competition in Business

Globalization

Globally Competitive

Acquisitions and Mergers

Talent attraction

Talent Retention

Talent Import

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Why do we do all these ?

Earlier Paternalistic role played by Govt

organization

Changed Scenario to Perform to surviveand grow

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Best Practices

Best Practices is not a designationlimited to small and exclusive Companies.

Often, the most useful ideas come fromCompanies that are faced with criticalproblems and are forced to find a solution.

A best practice should be able to

demonstrate a positive impact onCompany financial performance, customersatisfaction and/or employees satisfaction.

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Best Practices

Improve Company bottom line financial

performance

Enhances customer satisfaction

Strengthens the relationship between the

Company and its employees

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How is it determined

Legislations by Government

Compensation surveys

Crises

Creativity Leaders

Paying Capacity

Industry wise / region wise

Non profit organization NGOs

Trusts

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Wages

May be classified as :

Minimum wages

Living Wages

Fair wages

Competitive wages

Luxury wages

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Labour Legislations

Minimum Wages Act 1948

Minimum Wages rules different States

Minimum Wages for different Industriesand different skills.

Minimum wages for different Zones in the

same State Social security Acts like PF, ESI, WC Act,

MB Act, Gratuity Act. LWF Act etc,.

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Labour Legislations

Basic

Dearness Allowance

HRA

Conveyance Allowance

City Compensatory Allowance

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Compensation surveys

Industry wise comparisons

Region wise comparisons

Skill wise comparison

Law of Demand and Supply

Paying Capacity of the Organization

Special perks to retain talented employees

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How is it implemented

Forced to be implemented by legislations

Timing

In some company where Unions are prevailingby way of negotiations and settlements eitherlong term or short term

Based on paying capacity in one phase or in

phased manner Rewards for exceptional people

Law of demand and supply

Crises

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Thank you

B N Nagaraj