Description
This is a presentation explains on strategy behind establishing compensation plans across organization.
Establishing strategic pay plans
Corporate policies and competitive strategy
? ? ?
? ? ?
Aligned reward strategy: 1.What are the org’s key comp. Success factors? 2.What are the behaviors or actions necessary to successfully implement this competitive strategy? 3.What compensation program should we use to reinforce these behaviors? 4.What requirements should each pay element meet to fulfill its purpose? How well do the current reward programs match these requirements?
? ? ? ?
?
?
Issues: Will the firm be a leader or follower regarding pay. To emphasise seniority or performance Salary compression-raises based on longevity(plus skills?)/aggressive merit pay system/equity adjustments Geographical differences leading to cost of living differentials Expatriate employees
Compensation Policies should address…..
? ? ? ?
Rate of Pay compared to market rate Ability of Pay program to gain employee acceptance and motivate them Salary differential between new and senior employees Intervals of pay raises and their basis
Establishing pay rates
Salary survey – formal or informal ? Job Evaluation ? Group similar jobs into pay grades ? Price each pay grade ? Fine tune pay rates
?
Pricing managerial and professional jobs
To attract and retain good employees ? Importance of job evaluation here
?
Compensating Managers
Consists of 4 main elements: Base pay Short term incentives Long term incentives Executive benefits and perks
?
Compensating Professional employees
Use of job evaluation. Compensable factors-problem solving,creativity,job scope and technical knowledge ? Market pricing approach
?
Compensation trends
Skill based pay ? Differences between SBP and JBP: -Competence testing -Effect of job change -Seniority -Advancement opportunities Broadbanding
?
doc_330077196.ppt
This is a presentation explains on strategy behind establishing compensation plans across organization.
Establishing strategic pay plans
Corporate policies and competitive strategy
? ? ?
? ? ?
Aligned reward strategy: 1.What are the org’s key comp. Success factors? 2.What are the behaviors or actions necessary to successfully implement this competitive strategy? 3.What compensation program should we use to reinforce these behaviors? 4.What requirements should each pay element meet to fulfill its purpose? How well do the current reward programs match these requirements?
? ? ? ?
?
?
Issues: Will the firm be a leader or follower regarding pay. To emphasise seniority or performance Salary compression-raises based on longevity(plus skills?)/aggressive merit pay system/equity adjustments Geographical differences leading to cost of living differentials Expatriate employees
Compensation Policies should address…..
? ? ? ?
Rate of Pay compared to market rate Ability of Pay program to gain employee acceptance and motivate them Salary differential between new and senior employees Intervals of pay raises and their basis
Establishing pay rates
Salary survey – formal or informal ? Job Evaluation ? Group similar jobs into pay grades ? Price each pay grade ? Fine tune pay rates
?
Pricing managerial and professional jobs
To attract and retain good employees ? Importance of job evaluation here
?
Compensating Managers
Consists of 4 main elements: Base pay Short term incentives Long term incentives Executive benefits and perks
?
Compensating Professional employees
Use of job evaluation. Compensable factors-problem solving,creativity,job scope and technical knowledge ? Market pricing approach
?
Compensation trends
Skill based pay ? Differences between SBP and JBP: -Competence testing -Effect of job change -Seniority -Advancement opportunities Broadbanding
?
doc_330077196.ppt