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Compensation and Benefits
Compensation and Benefits
Compensation and Benefits
Compensation is the process of providing adequate, equitable and fair remuneration to the employees Benefits are Non-Wage benefits, such as paid vacations, pensions, health and welfare provisions, life insurance, the cost of which is borne in whole or in part by the employer.
Compensation Overview
Q1: What are the basic goals of any compensation system?
to attract high quality employees to retain high quality employees to stimulate high performance
Compensation Overview
Q3: What are the basic tools of any compensation system?
Differences by industry Differences by occupation Differences based on individual performance, seniority, etc.
Internal:
External:
Are we going to lead, meet, or lag the market? Comparison: Employees working on similar jobs in other organizations
B. Pay-Structure Decision:
How do we determine differences in pay for various jobs in our organization? Comparison: Employees working on different jobs within the organization
How do we determine how much to pay various people in our organization? Comparison: Employees working on the same jobs within the organization