2012 Final Compensation

8/13/2019 2012 Final Compensation

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Compensation refers to allforms of financial returns and

tangible services and benefits

employees receive as part of

an employment relationship.

What Is Compensation?


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Relational Returns from Work

Recognition& Status

EmploymentSecurity

Challenging

Work

Learning

Opportunities


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COMPENSATION

MIX

Labor MarketConditions

Area WageRates

Cost ofLiving

CollectiveBargaining

LegalRequirements

Compensation Strategyof the Organization

Worth ofthe Job

EmployeesRelative

Worth

EmployersAbilityto Pay


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Wages & Salaries in the organisation should be in linewith wages and salaries for comparable jobs in otherorganisation.

Ensuring that jobs in our company are paid the same asthe same jobs (in terms of KSA)in other companies. Data relating to pay levels can be collected through W

& S Survey. A salary survey reveals what otherorganisations pay for specific jobs and the basis forpayment.

Once the going rate prevailing in the region is knownthe co. can decide a higher or lower level for itsemployees without distrubing internal equity.


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Ensuring that compensation for jobs that are similar interms of KSA within the organization should be thesame.

It implies a proper relationship between wages paid fordifferent jobs within the co. Pay differentials should berelated directly to differentials between jobrequirements.

Fair pay differentials between jobs can be establishedwith the help of job evaluation.Job evaluation help todetermine relative worth of a job.It is useful ineliminating widely varying wages for jobs of equaldifficulty.It also minimises wage differentials on thebasis of sex, religion, caste etc.


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Merits:

This scheme links compensation package toperformance.

It enables companies to retain efficientemployees

It encourages employees to work even better.

It inculcates a sense of ownership and

responsibility It establishes significance of team work among

employees.


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1.This scheme can be used by only profitmaking companies

Falling share prices result in loss to employees.

Unsound stock market conditions casueinconvenience to employees in encashing theirinvestments.


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Types of

Nonmonetary

Rewards

TREATSFree Lunches

Coffee Breaks

Picnics

Dinner with the boss

Dinner for the family

Birthday Treats

Knick- KnacksDesc accessories

Company watches

Tie-pins,brooches

Diaries,PlannersCalendars

Wallets

T-Shirts


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Types of

Nonmonetary rewards

AWARDSTrophies

Plaques

Certificates

Letters of appreciation

Scrolls

SOCIAL ACKNOWLEDGEMENTInformal recognitionRecognition at office

gettogethers

Friendly greetings

,smiles,email

Solicitation of advice, suggestion

Membership of recreation club

Use of company facilities

for personal projects


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Types of

Nonmonetary

Rewards

TOKENSMovie Tickets

Dating allowanceVacation Trips

Coupons redeemable at stores

Early time offs

Anniversary and Bday

allowances ,presents

ON THE JOB

More responsibility

Job rotation

Special assignments

Training

Representing the co.

At public fora

Office Environment

RedecorationOffice with a window

Piped music

Flexible hours


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A Zillion Thanks award for emp who helped hispeer

My Dear Boss Scheme Subordinate who wants tonominate his boss.

Golden Banana award : Best Performer- H.P

Happy Nappy Day- H.P plays a Bday tune for itsemployees which resounds all over the orgpremises.

Sahara Airlines: organise joint Bday parties foremps at the end of each month.bday messages aredisplayed on co. noticeboards


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X Factor:

Concierge services:Emps are made free of their routine duties ofpaying bills, paying children school fees andother such necessary job unrelated chores. A

co. rep is appointed to perform all such choresso that emps can concentrate more on theirwork

Granny Gratitude Day- Jan,1st

,designatedholiday

Budding Genius award


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WIPRO:

Feather in my Cap- for successful completion ofproject

Encore for performing extraordinary in teams

ICICI:

Life is growth encourage people to participate andcome up with new ideas.

Saturday Kids club: Learning experience for Children

P & G: Provides 10 days paternity leaves and 8 weeksleave for adopting the child legally.

G.E : Hall of the fame award to best performingemployees


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NIIT

Colgate Palmolive &Modi Xerox :Annual

family days

Tangerine Infomedia

Oriental Craft Ltd Bharti Airtel

City Bank

Infosys

Cadbury


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1.Liberal housing Loans, soft loans i.e for conveyance and housing 2.Asset creation- such as co. car which can be purchased at a depreciated

value

3.Post retirement medical benefits for life

4.Scholarships for managers children

5.Assignments abroad for short duration

6.Deputing to development programmes internal/external/abroad/professional conferences

7.Membership of professional institutions

8.Study leave-India or abroad

9.Progressive cos single out star performers and structure theirindividualised innovative packages

10.Immediate impact rewards and recognition-Visible perks- cars andcabin


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Flexible Benefits-

Employees tailor their benefit program to meet theirpersonal need by picking and choosing from a menu

of benefit options.


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In an industry known for the short life span of its employees,Hughes Software Systems has evolved a highly successfulstrategy, to retain its high performers. They conducted abattery of surveys, interviewed employees, questioned

employees, questioned those who did not join to know whatmade them turn down the job offer, held detailed existinterviews to identify bad experiences, unmet expectations andfuture areas of improvement. The managements proactiveapproach in making these policy changes built employeeconfidence and earned HSS the reputation of a caring

organization.In any case, it is one company that extensively uses awards asthe cornerstone of its retention strategy. The guiding mottoseems to be Catch employees doing something right. Toillustrate: Managers give Snap Awards for individual andteam achievements, winding up with an office party


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The company also offers a host of other AnnualAchievement Awards on best initiative, best customerorientation, best team worker and the most innovativeemployee. These are besides the Presidential Awards infour categories for overall excellence, covering employeesin all functional areas. Then there are Annual Awards forBest People Manager and Best Project Manager and score ofpopular awards based on voting for leadership, mentoring,etc. Other innovative awards include Award for best

sense of humour, I would like to be like you, Terrifictrouble shooter award, etc. In fact, at HSS any excuse isgood enough for an award.

E-greetings are sent and the company celebrates longevityafter six months of an employeesjoining by presenting hera special tag, followed by a full recognition ceremony afterfirst year. Five years down the line, she gets a plaque and aGreen Card of privileges!


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All employees are covered under the EmployeeStock Option Plan. HSS have leveraged on anumber of positive factors like high-technology

work; business and personal ethics; building aculture of, openness; access to internationalopportunities; constant appreciation; wealth-creation through ESOPs, etc.

The focus in HSS, therefore, was to create alearning environment where the role of leadershipas mentors of younger employees is critical.Critical employees are recognized as GyanGurusMentors, Buddies, etc. by subordinates, as

well as, their senior managers. In sum, HSS istrying to create as many Glues as well as, theirsenior managers. In sum, HSS is trying to create asmany Gluesas possible to hold on to its people.


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2012 Final Compensation

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