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Compensation Management: Basic Introduction
Compensation Management: Basic Introduction
Management
Basic Introduction
Module 1 - Introduction To Compensation
A. Definition of Compensation
B. The Pay Model
C. Strategic Pay Policies
Attendance 20%
100%
serve
Business serveBusiness
Business
Objectives
Strategy Objectives
Business
Business BusinessObjectives
Objectives
Strategy
Compensation
Compensation Compensationstrategy
strategy
HR Head
is periodically
Strategy is periodically
reevaluated
reevaluatedand
Non-Financial andthe
the
Org.Structure Compensation plan
Rewards Compensation plan
periodically
periodicallydeveloped
developed
Compensation
Plan
Business
Business BusinessObjectives
Objectives
Strategy
Compensation
Compensation Compensationstrategy
strategy
HR Head
is periodically
Strategy is periodically
reevaluated
reevaluatedand
Non-Financial andthe
the
Org.Structure Compensation plan
Rewards Compensation plan
periodically
periodicallydeveloped
developed
Compensation
Plan
Business
Business BusinessObjectives
Objectives
Strategy
Compensation
Compensation Compensationstrategy
strategy
HR Head
is periodically
Strategy is periodically
reevaluated
reevaluatedand
Non-Financial andthe
the
Org.Structure Compensation plan
Rewards Compensation plan
periodically
periodicallydeveloped
developed
Compensation
Plan
C & B/S M
Pay levels /
structures Compensation
Compensation
Contribution Manager,
Manager,along
alongwith
with
Employee
/outputs team
teamisisresponsible
responsibleforfor
Total carrying out
carrying out
compensation
remuneration compensationrelated
related
activities
activities
Performance
linked Pay
Individual Pay
Internal
Tuesday, December 14, 2010 Equity External Equity 10
Employment Relationship
TRANSACTIONAL – Emphasizing the Cash &
Benefit Forms
RELATIONAL
Tuesday, December 14, 2010 12
Factor
Job Against Job Ranking Comparison
Alternation Ranking
Paired Comparison
Mental requirements,
Physical requirements,
Skill requirements,
Responsibility, and
Working conditions
M AXIM UM
FACTOR DEGREE FACTOR
POINTS FACTOR JE Points LEVEL W EIGHTS
Midpoint
Most companies strive to have the overall
workforce paid at or around a compa-ratio
of 100 %
Tuesday, December 14, 2010 52
Compa - Ratios
Individual C-R vary according to
Compa-Ratio 90%
Tuesday, December 14, 2010
100% 110% 100% 98% 54
Market Saurveys
Match each
Match Complete the
Review core job of RB remaining data input
Mercer’s with the jobs
Job- roles in RB sheet.
Matching given in the with the
Guide Mercer list.
additional job Instead of a
list provided
Determine the representative
Review core level by Mercer.
all Job position for
Descripti using the each job,
ons as variations
from core
Determine the provide a min
they level table or core level of 5-10 job
relate to the
RB using the holder data.
accompanying variations from
decision tree
core level table Submit the job
or the
Establish All data sheet to
Core levels accompanying Mercer
decision tree
Tuesday, December 14, 2010 57