...120 employees, you have been asked to evaluate different compensation strategies that are available for adoption within your organization. Compare and contrast several compensation strategies and determine the appropriateness of each compensation strategy to your organization. Business Research Report Compensation Strategies Presented to: Taskstream Assessment Code: RWT1 Student Name: Nicki Nelson Student ID: 0096768 Date: May 5, 2012 Mentor Name: Andrea Johnson Table of Contents Executive Summary 4 Introduction 5 Research Findings 6 Performance Based Compensation 6 Grade Based Compensation 7 Broad Banding or Team Based Compensation 8 Recommendations 8 Conclusion 9 References 10 Executive Summary Our main goal for a compensation strategy should be to retain high performers, those who work hard, and wish to grow with the company, (Kleimann, 2008). In thinking of these issues, I discovered employees don’t stay at employers because of pay. They stay for the culture. They stay because they get along with their supervisors. They stay because they are heard by senior management. Only 54% of those employees polled, rated compensation as very important, while 62% of employees polled stated opportunities to use skills and abilities at work as very important, (SHRM, 2011). With contemplating this information, I began looking at compensation strategies that rewarded more on skills or abilities than...
Words: 2514 - Pages: 11
...PAGE 1 Version 1.0 June 2006 This guide provides you with: Guidance to help you interpret your modular examination results Information on the regulations regarding repeats It includes: • Definitions of key terms • An explanation of each grade • The actions you need to take for certain situations • Guidance on grade point capping STUDENT GUIDE Examination Results and Repeats PAGE 2 Version 1.0 June 2006 SECTION A Interpreting Modular Examination Results This section defines some of the terms contained in your examination results transcript. Stage 1 Status: ‘Complete’ or ‘Incomplete’ COMPLETE Stage 1 completed, with 60 earned credits This means that you have completed Stage 1 and have attained a specified number of credits - 60. You will have passed 12 modules. Once the Programme Requirements have been fulfilled, you can progress on to Stage 2 and enrol before the commencement of the next academic year. INCOMPLETE If you have received an 'incomplete' status, this means that you have not achieved the credit requirements for your Stage and you have earned less than 60 credits. Depending on the number of credits you have earned, there are different options open to you: 1: If you have earned 50 OR 55 credits: You may be able to progress to Stage 2 and carry modules into the next Stage provided that: • You have completed the requirements for progression in your particular programme. ACTION: PLEASE CHECK WITH YOUR PROGRAMME OFFICE. • It is possible to...
Words: 2805 - Pages: 12
...Compensation Management (PACM) Release 4.6C HELP.PACM Compensation Management (PA-CM) SAP AG Copyright © Copyright 2001 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft , WINDOWS , NT , EXCEL , Word , PowerPoint and SQL Server are registered trademarks of Microsoft Corporation. IBM , DB2 , OS/2 , DB2/6000 , Parallel Sysplex , MVS/ESA , RS/6000 , AIX , S/390 , ® ® ® AS/400 , OS/390 , and OS/400 are registered trademarks of IBM Corporation. ORACLE is a registered trademark of ORACLE Corporation. INFORMIX -OnLine for SAP and Informix Dynamic Server Informix Software Incorporated. ® ® ® ® ® ® TM ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® are registered trademarks of UNIX , X/Open , OSF/1 , and Motif are registered trademarks of the Open Group. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C , World Wide Web Consortium, Massachusetts Institute of Technology. JAVA is a registered trademark of Sun Microsystems, Inc. JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, SAP Logo, R/2, RIVA, R/3, ABAP, SAP ArchiveLink, SAP Business Workflow, WebFlow...
Words: 23388 - Pages: 94
...Objective--------------------------------------------------------------------------- 0608. Overview of Long Beach Hotel-----------------------------------------------------0709. Features & Benefits of Long beach hotel ---------------------------------------0710. Vision-----------------------------------------------------------------------------------0811. Mission---------------------------------------------------------------------------------0812. Corporate Objective ----------------------------------------------------------------0813. Organizational Structure--------------------------------------------------------------0914. COMPENSATION FOR TOP MID AND OPERATING LEVEL-----------------1015. Compensation---------------------------------------------------------------------------1516 Employee Benefit------------------------------------------------------------------------1617. COMPENSATION DIMENSION----------------------------------------------18 * Leave & Holiday pay------------------------------------------18 * Disability income continuation----------------------------19 * Health and accident protection----------------------------20 * Income equivalent payments--------------------------------21 * Payment for Time...
Words: 3882 - Pages: 16
...Compensation & Benefit Strategies Compensation and Benefit Strategies In today’s world, assigning a right compensation for a right job position and matching it with individual’s expectation has become a challenging task. For large scale organizations, defining compensations and benefits is even harder and border challenge. In this case organizations need to consider various demographic factors prior to defining favorable compensation strategy. Any compensation strategy applicable in given organization cannot be matched with similar job functions in other organizations or in other regions for same organization. A constant review of compensation and benefits strategy is needed with various benchmarks to attract right talent. Organizational long term strategies, span of organization, hierarchical structure, policies and future internal expansion in organization determines overall pay scales and promotions. For a large organization as referred in video ("Atwood and Allen," 2014) which is already having multinational presence and looking forward to expand further in various demographic regions, needs to consider various factors to fulfill organizational strategies. Attracting right talent, retaining existing talent and improving upon existing talent of employees are some major challenges faced by all such types of organizations. For such organization with its multinational existence I will choose a multinational based compensation plan which will account for regional...
Words: 1074 - Pages: 5
...How to Create Pay Grades Introduction While there are no regulations or set standards regarding the establishment of pay grades, there are some basic, customary steps involved in doing so. Key components in establishing and maintaining pay grades include: * Getting a commitment and participation from management and/or the executive team in establishing company minimum and maximum pay for the organization. * Using the company’s compensation philosophy to create pay grades that support that philosophy (will you lead the market, lag the market or pay at market?). * Determining how often you will adjust grades due to inflation or market changes going forward. The purpose of this guide is to provide a basic set of steps for creating a pay grade system for an organization. This guide is intended for general use and should be tailored to meet each organization’s specific needs. The guide assumes that salary survey information has been obtained for all benchmark positions and that job evaluation (if desired) has already been conducted. Step 1: Establish overall pay range Determine a company minimum and a company maximum pay. The minimum will be for the first and lowest grade and the maximum will be for the last and highest grade. Use a listing of all company positions or job groups and current salary survey data relative to those positions to set these parameters and incorporate the company’s compensation philosophy to lead, lag or pay at market. (Paying at...
Words: 973 - Pages: 4
...PROJECT TWO DR. LAURENCE FINK HURM 4650 - COMPENSATION FASTCAT Meagan Ayers Michael Ingelido Lacey Scheff Eric Schiffler Christie Sprague Racheal Town Spring, 2010 TABLE OF CONTENTS 8. EXECUTIVE SUMMARY 9. DECISION ON THE NUMBER OF PAY STRUCTURES 10. POLICY REGARDING PAY FORMS FOR ADMINISTRATIVE PAY STRUCTURE 11. POLICY REGARDING PAY FORMS FOR TECHNICAL PAY STRUCTURE 12. POLICY REGARDING EXTERNAL COMPETITION FOR ADMINISTRATIVE PAY STRUCTURE 13. POLICY REGARDING EXTERNAL COMPETITION FOR TECHINCAL PAY STRUCTURE 14. SURVEY ANALYSIS FOR ADMINISTRATIVE PAY STRUCTURE 15. SURVEY ANALYSIS FOR TECHINCAL PAY STRUCTURE 16. DECISION MAKING RELATED TO CREATION OF ADMINISTRATIVE STRUCTURE 17. DECISION MAKING RELATED TO CREATION OF TECHNICAL STRUCTURE 18. EVALUATION OF ADMINISTRATIVE PAY STRUCTURE 19. EVALUATION OF TECHNICAL PAY STRUCTURE 20. EXHIBITS R JOB MATCHES FOR ADMINISTRATIVE STRUCTURE S JOB MATCHES FOR TECHNICAL STRUCTURE T MARKET ANALYSIS ADMINSTRATIVE/TECHNICAL U STATISTICAL ANALYSIS FOR ADMINISTRATIVE STRUCTURE V STATISTICAL ANALYSIS FOR TECHNICAL STRUCTURE W PAY STRUCTURE ADMINISTRATIVE X PAY STRUCTURE TECHNICAL Y COMPANY SURVEY DATA Z SUMMARY OF JOB RATINGS ADMINISTRATIVE/TECHNICAL EXECUTIVE SUMMARY FASTCAT EXECUTIVE SUMMARY Introduction FastCat is a Business to Business software company that operates in a highly specialized and technological advanced industry. FastCat has been a pacesetter in this industry...
Words: 15014 - Pages: 61
...important elements of any organization. It is what compensates, drives, motivates, and rewards employees for the work they do. Or it does the opposite of these things. What is a strategic compensation strategy? Simply stated, it is the compensation of employees in ways that enhance motivation and growth, while at the same time aligning their efforts with the objectives, philosophies, and culture of the organization (Bohlander &Snell, 2010. Compensation includes all forms of pay and rewards received by employees for the performance of their job. Employees desire compensation systems that they perceive as being fair and commensurate with their skills and expectations. An effective compensation and benefit system will contribute to organizational effectiveness. Holland Enterprises is one of the city’s largest employers. Your firm currently employs 3,500 employees. However, since 2007 the firm has lost 25% of its staff. From the research that has been presented, it is because your firm lacks an effective compensation and benefit system. In order for Holland to remain an effective organization, your compensation and benefit system needs a long overdue makeover. The current compensation system is being perceived as unfair and uncompetitive in the marketplace. An effective compensation and benefit system will contribute to the effectiveness of your organization. To survive and be successful in a global economy, an organization must be competitive (Henderson, 2006). In...
Words: 1847 - Pages: 8
...Compensation Practice Donald Johnson August 25, 2015 The current compensation plan of NIKE is geared towards attracting and retaining excellent human resources. The compensation plans serve multiple purposes for NIKE. The compensation plan for executives is determined through a compensation committee and largely relies on long term equity-based compensation to ensure that the executives make decisions in line with the long term objectives of NIKE. For its managers, the company’s compensation plan is focused on exceeding market rates, while ensuring a rich benefits offering, and even a fully paid health plan. This plan is geared towards retaining and motivating the best sales and management staff, to ensure health and continuity of its key human resources. For its agents and suppliers, NIKE ensures that the work environments are sustainable and pay rates are at par with industry standards. This ensures that the cost of production remains under control. Since the wages of these agents are at par with market levels, the company offers its goods at a subsidized rate to its employees, as a form of benefit. Based on its strategy to breed excellence, while ensuring the health and sustainability of its markets, the current strategy of NIKE is very effective in its ability to retain its workforce. The current compensation strategy gives a higher total rewards package to more strategic employees, and prefers to pay at or above market levels in order to retain the best talent...
Words: 1357 - Pages: 6
...Assignment (Establishing Strategic Pay Plans) ALDO YUDA PUTRA ARRY PANDOWO CHAERUN NISA PUTRI MANAGEMENT MAJOR FACULTY OF ECONOMY AND SOCIAL SCIENCES BAKRIE UNIVERSITY JAKARTA 2013 Basic Factors in Determining Pay Rates Employee compensation refers to all forms of pay going to employees and arising their employment. It has two main components, direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial payments (financial benefits like employer-paid insurance and vacations). Two basic ways to make direct financial payments to employees: 1. Time-based pay 2. Performance-based pay Legal Considerations in Compensation Various laws specify things like minimum wages, overtime rates, and benefits. For example: 1. 1931 Davis-Bacon Act allows the secretary of labor to set wage rates for labourers and mechanics employed by contractors working for the federal government 2. 1936 Walsh-Healey Public Contract Act sets basic labor standards for employees working on any government contract that amounts to more than $ 10.000 3. Title VII of the 1964 Civil Rights Acts makes it unlawful for employers to discriminate against any individual with respect to hiring, compensation, terms, conditions, or privileges of employment because of race, color, religion, sex, or national origin. 4. 1938 Fair Labor Standards Act contains minimum wage, maximum hours, overtime pay, equal pay, record-keeping, and child labor provisions...
Words: 2912 - Pages: 12
...nCOMPENSATION AND BENEFITS OBJECTIVE SNGPL has lots of expectations from its employees, so they provide them with lots of compensations and benefits, which make them more efficient. LIST OF COMPENSATIONS AND BENEFITS PROVIDED BY SNGPL * Group Life insurance * Medical benefits * Profit bonus * Annual increment * Promotion in upper grades * Gratuity Provident fund facility * Pension Facility * Educational scholarships * Loans * Uniform for workers * Leaves GROUP LIFE INSURANCE * INSURANCE POLICY a) The SNGPL provides group life cover to employees. Premium is paid by the organization. The HR department is responsible for coordinating settlement proceedings and providing assistance to an employee in lieu of any claim filed under the scheme. b) This benefit becomes effective from the date of becoming the member of the group insurance scheme. On confirmation, employee is required to nominate names of beneficiaries who would be entitled to receive payments in event of his/her death. c) Payment is made only in case of in-service death of an employee. Death after retirement would not entitle the surviving spouse or family members, as the case may be, to any benefits. One time lump sum payment is made equal to the sum assured. * INSURANCE PROCEDURE Head of HR function * Receive written consent from the employee for becoming member of the life insurance...
Words: 2948 - Pages: 12
...Item 1 To: Mary Wallace-Vice President From: Wage & Salary Division Re: Request for pay increase/promotion Susan Anthony sounds like she would be a good candidate for promotion. However, while Mrs. Anthony has the time in grade to be promoted, we require some more paperwork showing that she is proficient in the areas you have stated. Once we have received this paperwork we will be more than happy to endorse her for this promotion (Nkomo, Fottler, & McAfee, 2011). Additional Action: Follow up with Mary Wallace to make sure that the proper paperwork is delivered in order to promote Mrs. Anthony to Senior Assistant. Item 2 To: Kelly Actor From: Wage & Salary Division Re: Request for pay increase Mrs. Actor, while we value the years of loyal service you have provided the Mack Organization, we are unable to match the salary increase that you are seeking. The only increase that the company could consider giving you is a cost of living increase. If you send us your reviews, showing that you have received high review scores, we could then consider giving you a 3-5% cost of living increase based on the performance review ratings. Also sending us a letter of endorsement from your supervisor would be helpful in getting you this cost of living increase as well. Once again your continuous loyalty to this company is greatly valued, and appreciated, and we hope that you will consider this counter offer as long as all the paperwork is filled and meets the standard (Nkomo et...
Words: 1799 - Pages: 8
...process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. According to Michael R. Carrell and Frank E. Kuzmits “Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance”. To collect PA data, there are two main measures: Objective Measures Subjective Measures Figure: Methods of Performance Appraisal Compensation Determination Definition Employee compensation refers to all forms of pay going to employees and arising from their employment. Direct financial payments include wages, salaries, incentives, commissions and bonuses whereas financial benefits like employer-paid insurance and vacation. It has to main components: Figure: Employee Compensation Different types of compensation include:...
Words: 1900 - Pages: 8
...survey results * From policy to practice: The pay-policy line * From policy to practice: Grades and ranges * From policy to practice: Broad banding * Balancing internal and external Pressures: Adjusting the pay structure * Market pricing Exhibit 8.1 - Determining Externally Competitive Pay Levels and Structures * Specify Competitive Pay Policy Information on external markets * Survey * Process of collecting and making judgments about the compensation paid by others * Provides the data for translating policy into pay levels, pay mix, and structures * The Purpose of a Survey Adjust pay level—how much to pay? * Based on overall movement of pay rates caused by competition in the market Adjust pay mix—what forms? * Base, bonus, stock, and benefits Adjust pay structure? Study special situations Estimate competitors’ labor costs * Competitive intelligence * Employment Cost Index * Measures quarterly changes in employer costs for compensation * Select Relevant Market Competitors Employers who compete: * For same occupations or skills * For employees in same geographic area * With same products and services Fuzzy markets * Organizations with unique jobs and structures find it hard to get comparable market data * Design the Survey Who should be involved? * Compensation manager, managers, and employees * Outside consulting firms * Word-of-mouse – Online...
Words: 790 - Pages: 4
...Group # 5, Mgt 33- C Members: Dolor, Monica Doria, Don Jovie Nathaniel Flordeliz, Mary Josette Gaitera, Hannah Jhania Submitted to: Mr. Leonidas Cañete I. Strategic Compensation Definitions: Compensation – what employees receive in exchange for their work Strategic Compensation – involves compensation practices being aligned with the achievement of the organization's strategic business objectives Pay for performance – pay system that rewards employees on the basis of their performance Compensation Philosophy A formal compensation policy should: * Reflect the organization’s strategic business objectives and culture * Articulate the objectives that an organization wants to achieve via its compensation programs * Be communicated to all employees * Be perceived as fair and equitable * Provide the foundation for designing and implementing compensation and benefits programs Remuneration Policy: * The Committee recognizes that the Group operates in a global environment and that its performance depends on the quality of its people. To Prosper, the Group must be able to attract, motivate and retain highly skilled executives willing to work around the world. Key principles: * Competitive rewards are provided to attract and retain executive talent on a global basis * Demanding key performance indicators apply to delivering results across the Group and are applied to a significant portion of the total reward * Rewards to executives are...
Words: 2521 - Pages: 11