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Compensatio N
Compensatio N
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TOYOTA OVERVIEW
HQ
Toyota, Japan
Industry
Auto Manufacturing
Size
5000+ Employees, $204B+ Revenue
NYSE
TM
Competitors
Ford Motor, General Motors, Honda
Website
www.toyota.co.jp
AIM IS TO IMPLEMENT
LEAN – COMPENSATION
Have a well defined group compensation system in
place before implementation.
Pay system has to achieve behavioral changes that
impact bottom line business results.
Manage new pay system.
Include indirects in your compensation scheme.
Set non-monetary reward systems as well.
Toyota Integrated Medical Management
Toyota’s Health/ Wellness Vision:
Integration, Occupational Health & Benefit
Old Vision
Occupational
Health Personal Health
New Vision
Total
Health/Wellness
Care
*Health/Wellness
Group
IT’S OLD SYSTEM - THE PRODUCTIVITY BONUS
BASED ON GROUP LEVEL
GM had:
Excessive wage costs for its unionized workers.
Pension crisis with salaried and unionized retirees.
Uncompetitive factories with low-quality products.
Toyota had:
Lower compensation costs due to young work force.
A weak currency in Japan.
A lucky break from high oil prices in those years.
As a result:
Toyota won.
LET’S CHECK OUT PAY OF TOYOTA CANADA INC.
PAY SCALE BY CITY
SALARY VARIES BY STATE
SALARY BY BENEFIT/PERK
SALARY CHANGES WITH
YEARS OF EXPERIENCE
HOURLY RATE BY JOB
SALARY BY GENDER
SALARY VARIATION BY SALES TERRITORY
AUTOMOTIVE ENGINEERS STATISTICS ON
OVERALL INDUSTRY
VDA payable
Sl.No. Category of Employment Basic Wage Total Wage
for 298 points
“Best Practices”
9-23
OUR SUGGESTED STRUCTURE TO PAY
EMPLOYEES
Common to all types of jobs
Basic pay- depend on the class/grade where a employee
is positioned.
Should be based on:nature of work
Physical work involved.
Mental work involved.
Knowledge & technical skills involved.
Volume of Duties & responsibilities.
Nature & no of Task/activities contained.
Level of Skills to be exhibited in the work
Burden on employee & complexity of job to do it.
on par with other Similar org’s pay structure for same job.
On par with cost of living/money value in that area/country.
As per latest pay commissions/govt guidelines.