Compensation differs depending of the view - Conduct salary survey- compare to be

point of society, stockholder, manager, and more competitive with competitors

employee
Society- measure of justice, job benefits, and/or
reflection of justice in the society.
Manager- major expense.
Stockholder- using stock to pay employees
creates a sense of ownership.
Employee- compensation is a major source od
financial security.
- Conduct similar jobs into similar grades-
assign pay rates to each job into pay
grades
- Price each grade- assign pay rates to
pay grades.
- Fine tunes pay rates- adjust formulated
rates.
- Wage administration rules- information
about average salaries and ranges in the
salaries of groups should be made
known to the employees concerned.

Compensation is all forms of financial returns

and tangible service and benefits employees Motivation- to be more productive but does not
receive as part have to be compensation based

Team cohesion- increases productivity levels of

the team.
Psychological pay
Morale- increases overall moral provided the
Base pay benefits are regarded as equitable
Merit pay

Cos-of-living adjustment

Incentive

Alignment- policies

Competitiveness- competitor’s compensation

Contribution- seniority

Management- cost, communication, change,

evaluation next

Salary and wage administration- is to establish

and maintain an equitable wage and salary
structure.

- Job analysis- job description and job

specification
WEEK #2

Remuneration- on top of your work.

Compensation- amount being payed to you by

the employer. Pampalubag loob.

Economic basis for Remuneration

 Globalization
 Technology
 Unemployment levels
 Industry condition
 Cost of living

Government influences

 Minimum pay
 Holiday pay
 Night differential= +30%
 13th month pay
 Retirement
 SSS, PAG-IBIG, PhiHealth
 Health insurance
