“Compensation[/i][/b]”
In network marketing, the details of how the commission of independent agents will be determined on their own and their downline's sales revenue. See also compensation structure.
The greatest headache for any HR is to derive compensation plan for the organization. There includes various parameters like performance, skills, years of experience, etc. Pay is usually decided keeping in mind factors such as market value, unions, or the social norm that is prevalent at a given period. Pay also includes benefits, tangible and intangible rewards, etc. The employee may be receiving more than just a certain sum of money in his pay check. The extras are covered by the employer. Compensating employees usually is the major portion of a company's expenditure.
Compensation is related to the contract between an employee and his or her employer. This compensation is critical to the employees as well as the Company and extends to the general economy.
The objective of compensation is to
recruit and retain qualified employees.
increase or maintain morale/satisfaction.
reward and encourage peak performance.
achieve internal and external equity.
reduce turnover and encourage company loyalty.
modify practices of union
The components of job description are:[/b][/b]
Job Descriptions
Job Analysis
Job Evaluation
Pay Structures
Salary Surveys
Policies and Regulations
Different types of compensation include:[/b][/b]
Base Pay
Commissions
Overtime Pay
Bonuses, Profit Sharing, Merit Pay
Stock Options
Travel/Meal/Housing Allowance
Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes...
One of the biggest management challenges for a growing business is compensating salespeople effectively. You know you need an incentive compensation plan that encourages your sales force to land new accounts and continue to upsell existing customers, but where do you begin figuring out the best way to compensate them? It often boils down to finding the right balance between base pay and commission. But other questions also may come in to play: Will a commissions-only model work for you? How do you set parameters for performance? How do you measure that performance?
How to derive a compensation plan:
Following are the steps:[/b][/b]
Develop a program outline.
Designate an individual to oversee designing the compensation program.
Develop a compensation philosophy.
Conduct a job analysis of all positions.
Evaluate jobs.
Determine grades.
Establish grade pricing and salary range.
Determine an appropriate salary structure.
Develop a salary administration policy.
Obtain top executives' approval of the basic salary program.
Communicate the final program to employees and managers.
Monitor the program.
Types of Compensation Plan:[/b][/b]
The Matrix Plan
The Unilevel Plan
Uni-Level MATRIX plans
Forced Matrix Pay Plans
Fast Start Bonus
Sponsor Bonus
BREAKAWAYS
INFINITY BONUSES
BINARY PLANS
HR has to measure compensation levels against other employees in the company, against other employees in other companies in similar positions, and against performance.
HR has to determine salary ranges for existing positions and adjust those periodically to compensate for economic factors. HR often has to determine a salary for a new position, or if you promote someone to new responsibilities.
In network marketing, the details of how the commission of independent agents will be determined on their own and their downline's sales revenue. See also compensation structure.
The greatest headache for any HR is to derive compensation plan for the organization. There includes various parameters like performance, skills, years of experience, etc. Pay is usually decided keeping in mind factors such as market value, unions, or the social norm that is prevalent at a given period. Pay also includes benefits, tangible and intangible rewards, etc. The employee may be receiving more than just a certain sum of money in his pay check. The extras are covered by the employer. Compensating employees usually is the major portion of a company's expenditure.
Compensation is related to the contract between an employee and his or her employer. This compensation is critical to the employees as well as the Company and extends to the general economy.
The objective of compensation is to
recruit and retain qualified employees.
increase or maintain morale/satisfaction.
reward and encourage peak performance.
achieve internal and external equity.
reduce turnover and encourage company loyalty.
modify practices of union
The components of job description are:[/b][/b]
Job Descriptions
Job Analysis
Job Evaluation
Pay Structures
Salary Surveys
Policies and Regulations
Different types of compensation include:[/b][/b]
Base Pay
Commissions
Overtime Pay
Bonuses, Profit Sharing, Merit Pay
Stock Options
Travel/Meal/Housing Allowance
Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes...
One of the biggest management challenges for a growing business is compensating salespeople effectively. You know you need an incentive compensation plan that encourages your sales force to land new accounts and continue to upsell existing customers, but where do you begin figuring out the best way to compensate them? It often boils down to finding the right balance between base pay and commission. But other questions also may come in to play: Will a commissions-only model work for you? How do you set parameters for performance? How do you measure that performance?
How to derive a compensation plan:
Following are the steps:[/b][/b]
Develop a program outline.
Designate an individual to oversee designing the compensation program.
Develop a compensation philosophy.
Conduct a job analysis of all positions.
Evaluate jobs.
Determine grades.
Establish grade pricing and salary range.
Determine an appropriate salary structure.
Develop a salary administration policy.
Obtain top executives' approval of the basic salary program.
Communicate the final program to employees and managers.
Monitor the program.
Types of Compensation Plan:[/b][/b]
The Matrix Plan
The Unilevel Plan
Uni-Level MATRIX plans
Forced Matrix Pay Plans
Fast Start Bonus
Sponsor Bonus
BREAKAWAYS
INFINITY BONUSES
BINARY PLANS
HR has to measure compensation levels against other employees in the company, against other employees in other companies in similar positions, and against performance.
HR has to determine salary ranges for existing positions and adjust those periodically to compensate for economic factors. HR often has to determine a salary for a new position, or if you promote someone to new responsibilities.