4-6 pages research paper
andy1971
compensation1.pptHuman Resources Management
Compensation Overview
Components
- Direct
- Base pay
- Variable pay
- Bonuses
- Incentives
- Stock options
Indirect
- Benefits
- Health
- Life/disability
- Paid time off
- Retirement/pension plans
- Educational support
Roles
- HR
- Develops and administers the system
- Pay surveys
- Policy
- Management
- Identifies job roles and issues
- Recommends pay rates per HR guidelines
- Evaluates employee performance for pay
Philosophy
- Entitlement vs. performance
Metrics
- Pay and benefits as a % of operating expense
- Total pay and benefits spending
- Human value added
- Revenue-operating expense-pay and benefits= adjusted profit divided by FTE
- ROI on human capital invested
- Revenue- operating expense – pay and benefits= adjusted profit divided by pay and benefits
- Employee cost factor
- Total compensation and benefits divided by FTE
Types of pay
- Competency based
- Individual based
- Team based
Equity as a factor
- External vs. internal
Laws
- Fair labor standards- 1938
- Minimum wage
- Child labor
- Exempt and non-exempt
- Overtime
- Time off
- Independent contractor
Job analysis
- Job description
- Survey and market pricing
- Pay structure
- Policy
- Individual pay
- Important to involve the people doing the work
- Review and monitoring
Group exercise
- Discuss as a team, what type of compensation package do you seek from your work and why?
- Discuss for ten minutes and report out (two minutes) to the class
How does this affect you?
- What to say in an interview when asked about money!
- https://www.youtube.com/watch?v=8Lno8YuRHFs
- https://www.youtube.com/watch?v=Fk4nnWTL-_E
- Let’s practice!
- In pairs, have one person ask you, “ what are your salary expectations” and based on what you learned from the video’s, how might you respond to keep your leverage high?
How does this affect you?
Cont.
- How do you know whether or not to accept an offer?
- https://www.youtube.com/watch?v=oPaqTvspN8w
- https://www.youtube.com/watch?v=o1ZJL1tA184
- Exercise in pairs: Practice offering the other person the job and a specific salary. The other person will practice responding based on your learning from the video’s!
Group exercise
- From your learning in class,if you were starting a new company , given your learning thus far in class, what type of compensation system would you set up and why?
Summary (From the employer side)
- From the employer side
- Compensation is usually system based
- Metrics should be used to monitor
- External benchmarking should be used
- Internal equity should be monitored
- Laws govern what can be done
- Employee communication is key
Summary (From your side)
- Do your homework
- Salary studies
- Make your pro’s and con’s list
- Practice how to answer:
- What type of Compensation are you seeking?
- We would like to offer you the following; how will you respond?
- Start of course with a bigger vision of your work, life and roadmap towards what you want. Know this in advance of any job search!
Key Learning?
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