HRM Exam
csht
week_5_number_1_HCA_502.pptxHealthcare Compensation Practices
Week 5: Part 1
1
Direct & Indirect Compensation
Base Pay
Wages
Salaries
Variable Pay
Bonuses
Incentives
Stock options
Benefits
Health/medical insurance
Life/disability insurance
Paid time off
Retirement pensions
Education assistance
2
Direct Compensation
Indirect Compensation
Majors Goals of any Compensation System
4 goals:
Attract
Motivate
Retain
Labor cost containment
3
Compensation Issues
Compensation philosophy
Entitlement v. performance based
Market approach
At-market
Above market
Below market
4
Employees paid for their knowledge or skill rather than the completion of tasks, duties, & responsibilities
Considerations
Significant time investment
Strong management commitment
Training required to gain & maintain competencies
Limitations on number of people allowed to gain competencies
5
Do we want to use Competency-Based Pay?
Pay Secrecy vs. Openness
The degree or openness or secrecy that organizations allow regarding their pay systems
Internal v. External Equity
The perception of pay fairness
Team v. Individual rewards
Should all team members be compensated equally?
6
Other Compensation issues
