HUMAN RESSOURCE
abbe
9.Compensation.pptxMGMT 316 Compensation
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Do you remember?
Compensation: __________________________ in return for services
Direct financial compensation: __________________________________________________________________
Indirect financial compensation: all other employee benefits
Nonfinancial compensation: ________________ from the job itself or from psychological and/or physical environment in which employee works
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want big impact?
USE BIG IMAGE
Base Pay
Base pay: ______________________________________________
Could be paid as:
Hourly wage – paid set amount for ________________________________________________________
Salary – paid one base amount _______________________
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Added to Base Pay: Cost of Living Adjustment (COLA)
Pay increase to compensate for ________________________________________________________________________________________
Protects standard of living by ensuring that __________________(face value) does not fall significantly below _______________(purchasing power)
Employers can use the __________________________ (CPI) to understand cost of living increases
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Added to Base Pay: Seniority Pay
Seniority: _______________________that an employee has been associated with the company, division, department, or job
Pay increases ___________________ as _________________increase
Human capital theory: workers become more proficient __________________
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Added to Base Pay: Performance-Based Pay
Pay increases awarded based on ______________________________________
Merit pay: pay increase that is permanently added to base pay based on ______________________________________________
Merit bonuses: _________________ for past performance
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Added to Base Pay: Incentive Pay
Incentive pay: rewards employees for partially or completely attaining a predetermined work objective.
Piecework: ____________________________
Management Incentive Plans: ________________________________________________
Behavioral Encouragement Plans: _________________________________________________
Referral Plans: ____________________________________
Gain Sharing: _____________________________________
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Added to Base Pay: Company-wide Incentives
Profit sharing: distributing percentage of ______________ to employees
Employee stock plans: companies grant employees right to _____________________ of company
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Incentives Gone Rogue
Employees may only focus on ___________________ which might lead employees to only focus on that aspect of performance.
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Labor market: potential employees located within the _______________________________________________________________
Cost of living and competition are higher in ___________________________________
Same administrative assistant job:
Large urban community: $50,000/ year
Smaller town: $25,000/ year
Labor Market
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National Labor Relations Act: employees have a legal right to ___________________________________________________________________
Unionized organizations tend to have _____________________ and ___________________________ increases because of collective bargaining
Spillover effect: nonunion companies are offering _________________ to entice workers not to seek union representation
Labor Unions
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Depressed economy = increased _____________ and ________________ market rate
Booming economy = greater competition to good workers and price of labor is __________________
Economy
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Service industries rely on employees with relatively ________ skills so industry pay is _______
Specialized skill industries rely on employees with specialized skills such as being able to operate ___________________ physical equipment so pay is ________
Industry Type
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Establishes ____________________ standard
Current minimum wage: $7.25 per hour
Requires companies to pay more for overtime work
Overtime pay: more than ____________ hours must be paid no less than ____________________________________________
Requires record keeping and provides standards for child labor
Wage and Hour Division of the U.S. Department of Labor
Fair Labor Standards Act
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Compensation policy: choices that compensation professionals make to promote _________________________________
Made up of:
Pay level policies
Pay mix policies
Competitive Compensation Policies
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Market lead policy: organizations that pay _________________________than competing firms.
Market match policy: orgs offer the _________________ that most employers provide for a similar job in a particular area or industry
Market lag policy: orgs may choose to pay ___________________________ because of poor financial conditions or hiring employees whose skills have a lower impact on company success than others
Pay Level Policies
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Pay mix policies: combination of __________________________________ financial compensation and employee benefits that make up an employee’s compensation package.
Pay mix policies help _________________________
Can focus employee performance on what the employer expects, such as excellent customer service, sales, etc.
Pay Level Policies
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Indirect Financial Benefits
Profit sharing: distributing percentage of firm’s profits to employees
Employee stock plans: companies grant employees right to purchase share of company
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Legally Required Benefits: Social Security
System of __________________________
Federal payroll tax to fund unemployment and retirement benefits
Both _____________________________contribute
Also includes
_________________
___________________________
__________________________
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Legally Required Benefits: Unemployment Insurance
Laid off individual receives compensation for up to ___________________
Administered by states
Unemployment must be of __________________________
Payroll tax paid solely by employers
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Legally Required Benefits: Workers’ Compensation
Coverage of expenses resulting from __________________________________________
Administered by states
Program paid for by __________________
Price of insurance related to past experience
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Discretionary Benefits
Discretionary benefits: benefit payments made as a result of _______________________________
Includes:
Health care
Retirement plans
Life insurance and disability insurance
Paid time off
Employee services
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Discretionary Benefits: Health Care
____________________________ item in the employee benefits package
Why so expensive?
_____________________________
Inefficient administrative processes
_____________________ for medical care
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Discretionary Benefits: Retirement Plans
Provide _______________________ to individuals following the end of their work lives
Different types of plans based on whether and how much the employer is contributing
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Discretionary Benefits: Life and Disability Insurance
Life insurance: provides __________________ upon the death of an insured person
Long-term disability: provides a _____________ to employees who are unable to work for an extended period due to ______________________
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Employers recognize that employees _________________ from the job for a number of reasons
Vacation
Sick pay and paid time-off banks
Other types
Paid Time Off
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Provides workers with opportunity to rest and thus ___________________________
Encourage employees to _______________________________________
Typically increases with seniority
Americans have a habit of not taking full advantage of vacation benefits
Paid Time Off: Vacation
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Many orgs allocate each employee a certain number of sick leave days per year
Some managers are very critical of sick leave programs
Paid time off (PTO) banks: ________________________________________________ that employees can use for any purpose
Paid Time Off:
Sick Pay and Paid Time Off Banks
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Handle ____________________
Jury duty
_______________________
Bereavement time
Rest periods, coffee breaks, ______________, cleanup time, and travel time
Paid Time Off:
Other Types
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___________ of employees miss work due to unexpected child-care coverage issues
Estimated that every _____ invested in child care yields about _________in returned productivity and benefit
Employee Services: Child Care
Reduces _____________
Increases employee _______________
Improves retention and ____________
Promotes advancement of women
Makes the firm an ______________________
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Improves employee ______________________
Many different ways to reimburse workers
Employers often require a certain number of years with company in exchange
Employee Services: Educational Assistance
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Companies believe they get high payback in terms of ________________________
Hope to gain:
Increased productivity
___________________________
Enhanced employee morale
___________________________
Employee Services:
Food Services/ Subsidized Cafeteria
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Company-paid shipments of ___________________ and temporary living expenses
Cover all or portion of the _____________________ associated with buying a new home and selling old one
Employee Services:
Relocation Benefits
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Premium pay: compensation paid to employees for ___________________________or working under ____________________________
Hazard pay: pay for work under ___________________________________________
Shift differentials: pay for inconvenience of working ____________________________________
Employee Services:
Premium Pay
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Gives employees opportunity to temporarily continue coverage they would lose because of ____________________________________________________________________________
Former employee may keep coverage for up to __________________ after employment ceases
Individuals must pay for insurance at _______________
Employee Benefits Legislation: COBRA
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Amendment to Age Discrimination in Employment Act
Prohibits discrimination in administration of benefits on ___________________
Employee Benefits Legislation:
Older Workers Benefit Protection Act of 1990
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Provides up to 12 weeks per year of ______________due to:
Employee’s own ________________________________
Need to care for ________________________________, seriously ill child, parent, or spouse
Employee Benefits Legislation:
Family and Medical Leave Act (FMLA)
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Workers needs to ___________________________________
Laws requiring organizations to provide a benefits summary and coverage explanation to all employees
Communicating About Benefits
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Work-life balance = ___________________________________________
Organizations can provide benefits in the form of _______________________________ to improve this balance
Often good for ________________________ employees
Work-Life Balance Benefits
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Allowing employees to choose their own ________________(within certain limitations)
Work same number of hours but can choose __________________________
Work-Life Balance Benefits: Flextime
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Permits employees to fulfill their work obligation in fewer days than typical 5-day workweek
______________________________
Often greater job satisfaction
Work-Life Balance Benefits:
Compressed Work Week
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Employees able to remain at home, or away from the office, and perform work using ___________________________________________
Work-Life Balance Benefits:
Telecommuting
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