Compensation and Benefits- Group 6

7/29/2019 Compensation and Benefits- Group 6

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Compensation & Benefits

Presented by:

Kush BhattSanya Dalmia

Sneha Desai

Sakshi Korde

Karim Musani

Parag Patil

Nikita SinghSiddhi Shah



Compensation

•Remuneration received by an employee in

return of his/her contribution to the

organization.

•Balances work-employee relation by

providing monetary and non-monetary

benefits to employees.



Objectives of CompensationOrganizations are established to accomplish

specific objectives. To achieve these objectives, an

organisation must be able to

• Attract

•

Retain• Motivate

workforce with appropriate skills and aptitudes. A

competitive compensation system plays an

important role



Total Compensation

Base or PrimaryCompensation

(Wage or Salary)

SupplementaryCompensation(Incentives,fringe and other benefits)



Wages and Salary

Wage – payment for labour or services to aworker, especially remuneration on an

hourly, daily or weekly basis or by the

piece. Wages are for blue collar employees.

Salary – Regular wages received by an

employee from an employer on a monthly

basis. Salary is for white collar employees.



Design of Salary Structure

1. Job Analysis

2. Job Evaluation

3. Pay Policy Identification

4. Pay Survey Analysis5. Pay Structure Creation



Components of Compensation



Salary Structure(A) Basic Salary + HRA + DA

(B) Conveyance + Medical + Other / Special Allowance if any

(C) Employers Contribution for PF (12% of Basic) (8.33% goes to

pension fund and 3.67% goes to PF Fund)

Employers Contribution for ESIC (4.75% of Gross)

(D) Employees Contribution for PF (12% of Basic)Employees Contribution for ESIC (1.75% of Gross)

Gross Salary = (A) + (B)

CTC = (A) + (B) + (C)

Net in Hand = (A) + (B) - (D) ...



Compensation Policy

• It is a written document rather acommitment of the organisation to ensure

easing out payments, providing opportunities

to grow.

• It reflects the intention and objectives of the

company to hire or acquire, maintain and

retain its employees.



Compensation policy elements• Types of salaries/ wages and relevant plans

• Job evaluation

• Design of Compensation Packages

• Provision of welfare, security, motivation, incentives

and growth opportunities.• Overtime Opportunities

• Benefits/Incentives and their criteria

• Method and timing of payments

• Employee’s growth opportunities.



Benefits

Objectives

• To recruit and retain the best personnel.• To protect them against certain risks.

• To increase and improve employee morale.

• To gain loyalty and co-operation of employees.

• To improve the productivity of employees.

Benefits - Indirect monetary and non monetary compensation paid to an employee.



Pay for time not worked

Employee Security Problems

Other Services

Types of Employee Benefits



Pay for time not worked

• Rest period

• Holidays

• Vacations

• Sick leave

• Maternity/Paternity leave

• Leave of Absence (e.g. educational leave)



• Gratuity payments

• Accident insurance

• Life Insurance

• Mediclaim

• Retirement Benefits – e.g. pension benefits.

• Superannuation

Employee Security Problems



Other Services

• Eating facilities• Transportation

• Child care

• Housing service• Recreational Facilities

• Educational service



Rewards & Recognition

Employee reward system refer to programs

set up by a company to reward

performance and motivate employees onindividual or group level. They are

monetary in nature whereas recognition

programs are generally not monetary innature



Types of RewardPrograms

Variable Pay

Bonuses

Stock Options

Profit Sharing

Group BasedRewardSystem



Recognition Tools

Newsletters or Magazine

Recognition boards

Thank you

Lunches or after work events

Family Days



Benefits of effective recognition

Gives the organisation the ability to showappreciation and say “thanks!”

Promotes trust and respect.

Facilitates and encourages change.

Drives improvement.

Improves the quality of work life.

Motivates individuals and teams to do their best.

Enhances loyalty.

Compensation and Benefits- Group 6

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