Compensation & Benefits

Presented by: Kush Bhatt Sanya Dalmia Sneha Desai Sakshi Korde Karim Musani Parag Patil Nikita Singh Siddhi 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 Compensation
Organizations 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 Primary Compensation (Wage or Salary)

Supplementary Compensation(Incentives, fringe and other benefits)

Wages and Salary

Wage payment for labour or services to a worker, 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. 2. 3. 4. 5. Job Analysis Job Evaluation Pay Policy Identification Pay Survey Analysis 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 a commitment 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 Employees growth opportunities.

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

Types of Employee Benefits

Pay for time not worked Employee Security Problems

Other Services

Pay for time not worked

Rest period Holidays Vacations Sick leave Maternity/Paternity leave Leave of Absence (e.g. educational leave)

Employee Security Problems

Gratuity payments Accident insurance Life Insurance Mediclaim Retirement Benefits e.g. pension benefits. Superannuation

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 on individual or group level. They are monetary in nature whereas recognition programs are generally not monetary in nature

Variable Pay Bonuses

Types of Reward Programs

Stock Options Profit Sharing Group Based Reward System

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 show appreciation 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.