Compensation & Benefits

12 th June 2010.

Compensation & Benefits

8. Laws relating to compensation. 9. Employee welfare / Wellness. 10. Industrial relations relating to compensation. 11. International compensation. 12. Recent trends in compensation & benefits.
- Executive compensations. - Approaches & administration. - Trends in C & B.

11. Revision & wrap up.

Compensation & Benefits

Objective of C & B :
The Role Of Compensation & Benefits Does It Include job analysis & job evaluation. Creating Flexible Compensation & Reward Policies That Can Change With Your Company Strategy. Implementing A Total Reward Scheme To Attract Top Talent & Become An Employer of Choice. Innovative Methods to Reward Employees. Increasing The ROI On Intangible Assets Through accounting & technologies. Developing Incentives And Rewards for Tough Economical Times.

Compensation & Benefits

Objective of C & B :

Shaping the future of employee benefits to changing needs. Global compensation and benefits trends: the right solutions for current market pressures. Compensation management for expats. Executive remuneration: corporate governance and performance measurement. Overall HR Outlook & C & B approaches.

Compensation & Benefits

Current Compensation Thinking :
Organizations need to develop a compensation philosophy and direction in

writing that is reviewed by the Board of Directors and agreed to by your managers. Particularly in an entrepreneurial, market-driven company, the compensation philosophy needs to include a method for grouping similar jobs for purposes of broad banding, since promotional opportunities are limited. It should include a responsible, measurement system for awarding variable pay. Less emphasis on increasing base pay, and more emphasis on distributing gains via bonuses that reward actual goal attainment.

Compensation & Benefits

Current Compensation Thinking :

Goal attainment should be rewarded for both individual and organizational

goal achievement to foster teamwork and eliminate the lone ranger mentality. Real goal achievement is attached to outcomes or deliverables that are measurable or offer a shared picture of what success looks like. They should not reward checking items off a to-do list. As the cost of benefits has increased, their place in a total compensation package has increased in importance. Shifting the costs of some benefits to employees is a last-option scenario.

Compensation & Benefits

In addition to traditional increases to base pay, and variable rewards, such as bonuses, profit-sharing and gain-sharing, recommend attention to quality of work life rewards. - Payment of a one-time, lump sum payment for a result or outcome that deserves recognition. - Payment of smaller rewards with thank you notes for above the call of duty contributions. - Increased emphasis on additional benefits such as pre-paid legal assistance, educational assistance, and vision insurance. - Increased opportunity for flexible work arrangements and job-sharing. - An organizational emphasis on the training and development of employees. - Clear career paths so employees see opportunities within your organization.

Compensation & Benefits

In addition to traditional increases to base pay, and variable rewards, such as bonuses, profit-sharing and gain-sharing, recommend attention to quality of work life rewards. - In summary, organizations are moving toward salary and compensation systems that emphasize flexibility, goal achievement, and variable pay based on performance, and less emphasis on increases to base pay. - They are using bonuses based on profit and accomplishment to add to employee compensation. - The rising cost of benefits is causing rethinking of their place in the compensation system. - Forward thinking organizations are emphasizing quality of work life rewards and recognition to add to the value of the total compensation package. -----------------------------------------------------

Compensation & Benefits

Current Questions in Trends in Compensation"
1. Are current compensation levels commensurate with the responsibility level of roles ? 2. Is the differential for performance adequate in our compensation structure ? 3. How relevant is role based compensation ? 4. Retention plans and their utility in managing attrition. 5. LTIP and its role in Total Rewards including whether LTIP should be broad based. 6. Design an international compensation package - considerations and challenges

Compensation & Benefits

Compensation & Benefits

Compensation & Benefits

How do you think compensation is determined ?

12 th June 2010.