...Different Types of compensation When a person applies for a job, he or she will find that different types of jobs sport different types of compensation. For example, some jobs pay by the hour. In these types of jobs, many times the employee has to punch a time clock so that there will be documentation of the exact number of hours that this person has worked. Other jobs pay an annual salary. For these types of jobs, the person is paid a set rate regardless of how many hours he or she works. Finally, some jobs have compensation which is based on commission. These are mostly sales positions, and the more a person sells, the more money he or she makes. These three types of compensation are the most common forms of payment that organizations offer to their employees. When looking at the Los Angeles Times Sunday edition for August 5, 2011, there are many jobs listed to say the least. Three salaried jobs which were listed on that day are: 1). Customer Support/Client Care for AppleOne, located in Santa Clara, California, with a salary of up to $62,000 year depending on experience; 2). Customer Support/Client Care for Ajilon Professional Staffing in Uniondale New York with a salary between $55,000-$75,000 per year depending on experience; and 3). Medical Reimbursement/Billing Analyst for a major medical organization located in San Diego, California is currently seeking a qualified individual for their expanding billing and reimbursement are with a starting salary...
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...Understanding Different Types of Compensation and the Benefits Rondricka Jefferies September 19, 2012 ACG 4111 Abstract There is a wide range of different types of compensation and other benefits. This paper will focus on three of many, Share based compensation to include stock options and restricted stock, Base Compensation and Pension Plans. Throughout this research project; there will be observance of the accounting treatments and disclosures along with the benefits, advantages and disadvantages to employees, share holders and investors. This will allow and develop a better understanding as to why compensation and other benefits are so important to employers, employees and shareholders. Understanding Different Types of Compensation and the3 Benefits Compensation and Benefits comes in many different forms. The major goal for compensation and benefits is to reward employees for services provided by an individual for the benefit of the organization. It’s a set of programs, aiming to achieve and attract capable workers to a particular business. Compensation and benefits also helps motivate employees towards superior performance and retaining these services for a long period of time (Ricci, Ignacio Human resource management. Website). The three types of Compensation and Benefits analyzed through this research are Shared Base Compensation dealing with stock option and restricted stock, Regular Base Compensation and Pension Plans. Shared based compensation gives a...
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...UNIT 1 Deadline as Apr 6 Question 1 Son, Ha, MA __________ compensation is the psychological mindset of performing a job. Son Answer | | Extrinsic | | | Intrinsic | | | Base pay | | | Discretionary | Question 2 Which of the following stakeholders requires that companies comply with all employment legislation? Son Answer | | Employees | | | Line managers | | | Executives | | | U. S. Government | Question 3 COLA (Cost of Living adjustments): Ha Answer | | are tied to changes in the price of consumer goods. | | | are part of seniority pay systems. | | | reward employees based upon the achievement of individual goals. | | | are offered as a type of merit pay. | Question 4 __________ is the term used to describe both the monetary and nonmonetary rewards an employee receives. Ha Answer | | Extrinsic compensation | | | Salary | | | Discretionary benefits | | | Strategic compensation | | | | Question 5 __________ focuses on gaining competitive advantage by being the lowest-cost producer of a good or service within the market place. MA Answer | | Differentiation strategy | | | Cost leadership strategy | | | Competitive strategy | | | Core compensation | Question 6 List and explain the five different stakeholders of a company’s compensation system. Son There are five different stakeholders of a company compensation system and the human resource department provides them within and outside...
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...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...
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...STUDY OF COMPENSATION MANAGEMENT IN HDFC BANK | |TABLE OF CONTENTS |Page no. | | | Acknowledgement |4 | | | Certificate |5 | |1. |Introduction | | | |Objective |6 | | |Limitation | | | |Scope | | | |Research methodology |7 | | | | | |2. |Details of the Project | | | |2.1 Introduction to compensation management...
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...control between subsidiaries and corporate headquarters, and to develop global leadership competence. Given this, successful expatriate assignments are indispensable to Multinational companies for both developmental and functional reasons. Training: An expatriate’s success in the host country is largely determined by his or her cross-cultural adjustment to the host country. While immersed in the new culture, expatriates are ‘removed from the comfortable environment of their parental culture and placed in a less familiar culture’ and are susceptible to adjustment problems because of numerous challenges that inhibit their cross-cultural adjustment like the need to speak the foreign language, to cope with culture shock, to understand different laws and customs, and to interact with local nationals. Scholarly research that has been conducted in recent years suggests that expatriates who are not prepared to confront the challenges (e.g., to cope with culture shock) find it difficult to adjust and hence incur, and impose on others, costly implications. For example, expatriates who are unable to adjust are more likely to perform poorly. Poor performance on the assignment has costly implications for expatriates (such as low self-esteem, self-confidence, and loss of prestige among co-workers), for the parent firm (such as lost business opportunities), and for the...
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...Business Research Report Compensation Strategies for 2014 Assessment Code: RWT1 Student Name: Student ID: Date: 9/15/13 Table of Contents Executive Summary Introduction Research Findings Salaried/Hourly Compensation Commission/Productivity-Based Compensation Longevity Compensation Recommendations6 Conclusion7 References8 Executive Summary This report reviews three different compensation strategies PepsiCo can develop and implement within all of our PepsiCo. Brands and businesses for our employees. Compensation is one of the most important and rewarding factors for our employees based on our organizational health survey conducted in 2011, so a thoughtful and thorough approach should be taken as we think about changing the way in which our companies reward our employees for the work they perform on a daily basis. Salary and hourly compensations are easy and constant ways of paying the employees of our companies. Salary and hourly compensation can be a set wages employees will earn based on their job description. This wage will not change based on seniority or merit. The stability of this type of compensation system is appealing to employees as they are aware of how much income they will receive on a regular basis. Hourly based pay has very little room for opportunity of growth for the employees. Commission/productivity based pay also known asperformance based pay is a relatively common and popular approach to compensation where the employee is paid by...
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...ways that an organization or entrepreneur can make mistakes when it comes to compensating his or her employees ethically and fairly. First, some of the ethical issues directly related to compensation plans are Pay Equity Laws such as the Equal Pay Act of 1963 and the Lilly Ledbetter Fair Pay Act that occurred in 2009 due to responses concerning the decisions of The United States Supreme Court’s ruling to restrict statutes of limitation based on sex discrimination (Mathis, Jackson, Valentine, & Meglich, 2015). The Lily Ledbetter Act helped guarantee an employee’s 30 days to file a claim against discrimination that was previously outlined in The Equal Pay Act....
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...Billy’s Bar-B-Q MGMT335-01 Unit 4 Assignment Abstract Billy’s Bar-B-Q wants to open a new Texas style restaurant in the North. This paper will identify the different systems of compensation as well as the benefits and disadvantages of each. It will define comparable worth and how companies can compensate their employees based on this and not break any federal legislation. Billy’s Bar-B-Q What are the different types of compensation systems? What are the benefits and disadvantages of each type of compensation? Companies have to compensate their employees for the work that they do. What is Comparable Worth? How do companies attempt to compensate their employees based on the Comparable Worth concept without violating the federal legislation? Companies have many laws they have to follow and by basing the compensation on comparable worth, the companies are letting the employees know they matter to the company. Compensation is “something given as an equivalent for services (Compensation, 2012).” Compensation is given in different types such as base pay, commissions, overtime pay, bonuses, travel, stock options, and benefits (HR Guide, 2012). The benefits of base pay are that the employee is sure to always have a pay check and paying bills will not be an issue. The disadvantage of base pay is making sure it is equivalent to the amount of work the worker is doing. The benefit of commission is that the pay for a commission job is almost always more than just base pay...
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...Compensation Plan for York Hospital Adrienne Cheatham HA225 Kaplan University A compensation plan is motivation for employees to fulfill a company’s goals and reflects its mission, vision and values. It not only needs to benefit the employee, it needs to benefit the employer, making it a win-win for both parties. Employees are looking to be employed by a company with many incentives like a company matched 401k and a tuition reimbursement plan. These types of incentives will help attract qualified employees and retain the current ones. The plan needs to be marketed to correlate with the type of employee you want in your facility. Salary is not always what attracts a quality employee. “Does the company seek short-term cash flow or long-term capital appreciation” (hr.com, n.d)? Long-term incentives create long-term employees but you also need to “keep in mind that having too many incentives diffuses their value” (Bouchard, 2012). The five key elements of designing a compensation plan include the different forms of compensation, workforce demographics, business cycle, compensation philosophy and legal and regulatory compliance according to the text. Two different types of compensation include direct compensation and indirect compensation. Direct Compensation “is all tangible rewards of the working relationship, that is, the sum of bas pay plus variable pay” (Hernandez, ). An example of direct compensation would be an annual increase in salary. Indirect...
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...HUMAN RESOURCE MANAGEMENT RESEARCH PROJECT relationship between type of compensation and work motivation and comparison between men and women as to which type of compensation motivates which gender. BY APSARA ALI EYMEN TATHEER YUSRA TARIQUE JAMALL BS – VIII SUBMITTED TO: MR: MANSOOR ZAKIR INSTITUTE OF PROFESSIONAL PSYCHOLOGY BAHRIA UNIVERSITY, KARACHI CAMPUS ACKNOWLEDGEMENTS We, Apsara Ali, Eymen Tatheer and Yusra Tarique Jamall would like to thank Allah Almighty for his blessings and for giving us the persistence to carry out this research study. Secondly, we would like to thank our supervisor Mr. Mansoor Zakir for guiding us throughout and for all his support and gave us opportunity to do this research which also helped us in doing a lot of research and we came to know about so many new things. Finally we would also like to thank our parents and friends who helped us a lot in finishing this research project within the limited time. Table of Contents * Acknowledgements 3 * Abstract 6 Chapter 1: Background of Research Study 7 - 12 1.1 Introduction 7 - 10 1.2 Statement of the problem 10 - 11 1.3 Importance of the project ...
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...with 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...
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...and company loyalty. Using a combination of base pay, indirect pay and team-based performance pay, Sephora’s compensation strategy aligns well with its chosen managerial strategy. Sephora also has a clear understanding of the different structural and contextual variables and how they must align with their managerial strategy. They take care to ensure that these variables are linked with their human relations strategy. By doing so, Sephora is also able to understand its own needs as well as what behaviours, and mix of compensation to generate these behaviours, is required to achieve its goals. In order to produce the behaviour that is necessary to achieve an organization’s goals, the company needs to be aware of the rewards they are offering their employees and whether the employees find these rewards motivational. Sephora, a leader in compensation in their industry, understands what type of rewards encourages their cast members to produce results, and ensures that these rewards are communicated and visible to the workers. While having a successful team-based reward program, Sephora needs to look at improving its individual rewards. By looking at Sephora’s compensation strategy through the compensation strategy formulation process, it is also evident that the strategy they have in place is appropriate and serving them well. About Sephora and Their Compensation Strategy & System Sephora was founded in France in 1969 and acquired by Paris-based LVMH Moët Hennessy Louis...
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...Total Compensation Methods Paper Total Compensation Methods Paper In all businesses, a company needs to make sure that their turnover ratio is maintained while, at the same time, keep their best employees. Compensation and benefits are just two ways that a company can do such things. The company must know what each individual is looking for at the same time. Not all employees want the same thing. Some employees want the steady 40 hour 5-day a week salary job, while others may want 4-day weeks and more paid time off. By providing a proper balance of all items such as compensation, benefit programs, and salary, the administration of the company can keep their excelling employees and may not have to worry about a huge turnover ratio. Compensation Methods “Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.” (HR Guide to the Internet) In this type of economy, many businesses will start to freeze wages and stop giving their employees any type of compensation. However, this may hurt the employee morale. By giving out a reward for an excellent job performance at times, a company could see a bigger profit in this rough economy. There are a few different types of compensation methods. These methods include but are not limited to the following: • Commission • Overtime • Bonus • Expense Allowances ...
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...There is a comprehensive range of different types of compensation and other benefits. This paper will focus on three of many, Share based compensation to include stock options and restricted stock, Base Compensation and Pension Plans. Throughout this research project; there will be observance of the accounting treatments and disclosures along with the benefits, advantages and disadvantages to employees, shareholders and investors. This will allow and develop a better understanding as to why compensation and other benefits are so important to employers, employees and shareholders. Compensation and benefits is considered as a sub discipline of human resources that has been one of the most important keys for the development of any successful company because is the main tool to manage efficiency of the staff motivating them to meet different goals that will favor the growth of the company flow of new ideas even a change on the old ways to function can lead to a real benefit. But will you as a worker contribute to your company as well if you were not compensated for it? The answer will be probably: NO. That is why comes to place compensations and benefits. There are four basic components of employee compensation and benefits. First: Guaranteed pay. When you are hired you have a fixed amount of money that will be paid to you for the services you offered. The most common form is based salary. Second: Variable pay. This form is a non-fixed monetary reward paid by the employer...
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