...Salary structure in management in Germany, Poland and the UK – a comparative study Table of Contents 1 Table of Contents 1TABLE OF CONTENTS..........................................................................................................................3 2INTRODUCTION.....................................................................................................................................4 3DEFINITION OF SALARY......................................................................................................................4 4GENERALY TRENDS IN MANAGEMENT SALARY IN UNITED KINGDOM, GERMANY AND POLAND....................................................................................................................................................6 5SALARY IN UNITED KINGDOM............................................................................................................6 6SALARY IN GERMANY..........................................................................................................................8 7SALARY IN POLAND.............................................................................................................................8 8CONCLUSION.........................................................................................................................................8 BIBLIOGRAPHY.......................................................................................................................................
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...Compensation and Reward Management UNIT 17 COMPENSATION STRATEGY, STRUCTURE, COMPOSITION Objectives After reading this unit, you should be able to: l appreciate compensation function and objectives; l analyse compensation issues and trends; l assess the characteristics of executive compensation and its determinants; l understand the principles and practices of compensation administration; and l identify the major components of wage structure in India. Structure 17.1 Introduction 17.2 Compensation Issues 17.3 Compensation Function 17.4 Compensation Policies and Objectives 17.5 Compensation Administration 17.6 Compensation Determinants 17.7 Compensation Survey 17.8 Compensation Structure 17.9 Job Evaluation System 17.10 Pay Equity 17.11 Executive Compensation 17.12 Compensation Trends 17.13 Wage Structure in India 17.14 Case Study 17.15 Summary 17.16 Self-Assessment Questions 17.17 Further Readings 17.1 22 INTRODUCTION One of the most difficult functions of human resource management is that of determining the rates of monetary compensation. It is not only complex, but significant both to the organisation and employees. Employee compensation decisions are crucial for the success of an organisation. From a cost perspective alone, effective management of employee compensation is critical because of the total operating costs. Another...
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...STRATEGY FOR EXTERNAL COMPETITIVENESS 4 Best Alternatives for FastCat 4 Pay Level and Mix of Forms 4 Integrating the External and Internal Structure 5 Preliminary Ideas 5 SURVEY DESIGN OF TOTAL COMPENSATION OF FASTCAT’S COMPETITORS 6 Selecting Benchmarks and Matching With FastCat Jobs 6 Selecting Competitors in FastCat’s External Market 6 Analyzing the Data: Deciding What Forms to Compare 7 Analyzing the Data: Adjusting for Aging 11 Evaluating the Regression Line and the Fit Between FastCat and the Market 15 FASTCAT’S PAY POLICY LINE 19 INTEGRATING INTERNAL AND EXTERNAL STRUCTURES 20 Bands and Zones 20 Overlapping 21 EVALUATING THE RESULTS 21 Description of Analysis 24 FastCats’ Strategy and Rationale to Lag Pay Levels 25 EXECUTIVE SUMMARY Our Proposal for FastCat’s compensation system in Phase II focuses on the base pay as well as providing incentives. In order to maintain its competitiveness in the industry, FastCat should lag the market. They must ensure their pay structure is strategically differentiated within the marketplace. The appropriate pay structure and compensation plan will help FastCat strengthen employee retention and increase productivity through incentives, rewarding performance, and employee engagement. FastCat’s success will be determined by its ability to balance the pay structure with firm profitability. We recommend FastCat use bands and zones because of the goal established in Phase I to be a more egalitarian organization...
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...Total Rewards System Proposal Lakeya Lyle HRM 533 Dr. Lorna Thomas August 9, 2015 Create a brief overview of the company requirements for a total rewards system. The Allstate Corporation is the largest publicly held personal lines property and casualty insurer in America. Allstate was founded in 1931 and became a publicly traded company in 1993. They are listed on the New York Stock Exchange under the trading symbol ALL. Allstate is widely known through the "You're In Good Hands With Allstate" slogan. As of year-end 2014, Allstate had $108.5 billion in total assets. In 2014, Allstate was number 92 on the Fortune 500 list of largest companies in America. The Allstate Corporation encompasses more than 75,000 professionals made up of employees, agency owners and staff. Among Allstate's employees, 56 percent are women, and 33 percent are minorities. More than 42 percent of officers and managers are women and 22 percent are minorities. As a company with a diverse population of employees, agents and customers, Allstate embraces diversity in everything they do, not only the customers they serve and the communities in which they invest, but also the people they hire and the businesses they use as suppliers. It's a testament to the company's corporate citizenship and a sound business strategy. Allstate is reinventing protection and retirement to help approximately 16 million households insure what they have today and better prepare for tomorrow. There high performance work environment...
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...financial officers, chief executive officer, upper level managers and the company president. Executive compensation mostly consists of base salary, bonuses, long-term incentives benefits, and prerequisites whose main purpose is to motivate the executives to steer the company to profitability and make decisions with the best interest of the organization. Executive compensation has been on an upward rise especially within the last few decades reaching to unprecedented levels. Worse still, executive employees’ salaries and benefits have increased at a significantly higher rate as compared to other employee’s compensation consequently raising controversy not only of the ethical issues but on issues of equity and efficacy of the high compensation in motivating the executive’s performance. The paper thus posits that the increased executive salaries are not only unethical but are not a reflection of executive performance nor are they correlated to executives performance and as such other options of motivating executive employees should be explored. Other employee motivations such as through psychological contract, organization motivation and employee development should be sought especially with the increased use of teams in management in volatile environment. Types of executive compensation Executive compensation consists of the base salary, bonuses, and long-term-incentives such as...
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...competitiveness of the labour market and turnover of employees had resulted in nightmare in compensation planning. Apart from this, the growing demands of the employees and competitive salaries offered by multinational companies had almost resulted in a compensation war in certain industries. Therefore, the human resources managers and tax experts have to evolve proper compensation planning for High end and qualified employees. The components of compensation have to be devised in such a way that, it focuses on the growing demands of employees while retaining the competitiveness and profitability of the company. Industry driven factors:- There are also certain driven factors that are influencing the compensation planning. The compensation Packages of knowledge workers are different from that of manufacturing sector. The employees working in call centers are compensated differently (vs) employees of technology driven companies.Some notable examples are., a) Compensation paid in IT/ITES, b) Investment banking/Equity research, c) Software companies, d) High-end industries having high technology content like Bio/Nano technology. e) Private research and related fields.Compensation Oval: | Components of compensation:- Basic wages/Salaries:- These refers to the cash component of the wage structure based on which other elements of compensation may be structured. It is normally a fixed amount which is subject to changes based on annual increments or subject to periodical...
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...WORKGROUP SALARY DISPERSION AND TURNOVER INTENTION IN CHINA: A CONTINGENT EXAMINATION OF INDIVIDUAL DIFFERENCES AND THE DUAL DEPRIVATION PATH EXPLANATION W E I H E , L I - R O N G L O N G , A N D B Å R D K U VA A S The present study generalizes previous pay dispersion research to the Chinese context by examining the cross-level relationship between workgroup salary dispersion and employee turnover intention contingent on individual differences. Field survey data including annual objective salary and self-reported attitudes among 370 Chinese employees in 51 organizational workgroups supported our cultural predictions by showing that the relationship between workgroup salary dispersion and turnover intention was positive only among employees with higher rather than lower levels of Chinese traditionality and among those with lower rather than higher salary levels. Furthermore, the results of mediated moderation analyses suggest that a dual-deprivation path model can explain the above relationships. We discuss the theoretical, cultural, and practical implications of these findings for organizations. © 2015 Wiley Periodicals, Inc. Keywords: salary dispersion, Chinese traditionality, turnover intention Introduction E mployee turnover is a challenge for organizations and managers not only because of the decreased firm performance followed by the loss of talent, but also due to the expensive replacement cost associated with hiring, selecting, and training...
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...their jobs. Together, intrinsic and extrinsic compensation, expresses a company’s total compensation system. (Martocchio, 2013) A company’s compensation philosophy suggests a set of directorial principles that are bound by acceptable employment practices and employee rights that have lead companies to decision-making about compensation. The compensation philosophy will compose a statement of purpose that will explain how its compensation plan will meet the needs of the company, shareholders, employees, and customers. Some compensation philosophies will list where its salaries fall in relationship to the regional/national wage markets, depending on size of the company, as well as use of explicit salary figures for an entry level employee with no experience. Other companies choose not to provide fixed figures meanwhile focusing on furthering its beliefs, attitudes, and principles that will structure the compensation plan and the company’s endeavor towards excellence, inspiration and encouragement of its employees through compensation (smallbusiness.chron.com). An effective compensation plan should include the following components: Objective, Importance of compensation, performance measures, reference (Benchmarking) points, competitive positioning, Internal equity and consistency, and governance program. This will include job analysis, market research about value of comparable job in marketplace, staff contributions and achievements, and the...
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...which employee performance is retrieved and criticism and/or remedial action plans are put into place in order to help make the employees work more effectively. (Youssef, 2012) There are many effective appraisal processes that help to evaluate and motivate a company’s most valuable assets (employees), and when used consistently a company or organization flourishes while retaining their best talented and skilled assets. Although the main reason for performance appraisals is to evaluate work performance, it is also important because it represents the effectiveness and goals that the organization has set and want to achieve through their employees. Organizations use performance appraisal for many other purposes as well such as; managing salaries and wages, providing communication points of strength and weaknesses, to determine job placement decisions, and also to justify disciplinary actions such as termination of an employee due to poor continued work performance. (Youssef, 2012) Without performance appraisals the everyday job that one does starts to become stagnant and monotonous and the employee has no sense of accomplishment. They also lose interest in increasing effectiveness if no one seems to care whether you’re doing a good job or are in need of areas of improvement. Keeping employees motivated and rewarded with incentive is key to a low turnover rate along with establishing a core of loyal and productive employees. The motivational role of incentives is to attract candidates...
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...is to increase revenue and the new pay structure will accomplish that goal in the long run. The new, cost containment, policy rewards, among other things, behavior aligned with FastCat’s objectives. This in turn will increase revenue, innovation, and customer satisfaction. This new system will need to be assessed over time to make improvements. Choosing a multiple job structure with a person-based pay will allow FastCat to utilize a hybrid structure. We have decided to lead with pay in the more critical jobs and match with the remainder jobs which include low skill or are entry level positions. We have assessed present salaries, created a merit pay plan, and suggested a bonus structure and benefits package. Employee buy in is vital to this new structure and it is FastCat’s responsibility to keep the communication channels open. Strategy for Recognizing Performance Performance based pay plans are based on a number of dimensions. In light of the work done at FastCat, we have chosen criteria that allows for a better distribution of wages and implies sacrifice on everyone’s behalf. However, in the long run, most employees, and the organization will benefit from the new pay structure. Assess Present Salaries Changes for costs in the employee group did not directly translate for FastCat; there were several red and green circle employees. Benchmark jobs were able to alleviate most of these problems. For the remainder of the deviant salaries, FastCat should instate adjustments,...
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...Case Analysis: When Salaries Aren’t Secret Case Summary RightNow!, a retail chain specializing in women’s clothing, led by ◦ Hank Adamson as CEO. ◦ Charlie Herald as the VP of HR and ◦ Harriet Duval as the CFO. Someone exposes the salaries of all 165 employees via email. Since RightNow! Was exapanding fast, they hired people at a wide range of salaries; making the new salaries disparate from existing ones. Immediate reaction of employees - comparing each other on the basis of pay. Several started contacting HR to discuss disparity in pay. Charlie and Harriet come up with two opposing views on how to handle the situation. Hank must decide what to do. Charlie’s View Opened Pandora’s box and facing possible resignations and lawsuits. Need to turn this into a positive result. Keep salaries public henceforth. ◦ No need to have extra security and secrecy built around salaries. It might happen again anyway ◦ Most people share what companies pay online anyway ◦ Employees will self-correct pay disparities ◦ Fame to RightNow! Because of this policy Harriet’s View Short-lived gossip and furor which will pass soon. Disparities in income are present in all companies. Cant spend time explaining to each employee why they earn more/less than someone else Since the cat’s out of the bag, the company should revisit pay disparities and conduct review. Beef up computer security to avoid future incidents like this Commentator’s Advice - Victor Sim Exposing incomes would lead...
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...------------------------------------------------- Compensation Management Compensation Management is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation includes payments such as bonuses, profit sharing, overtime pay, recognition rewards and sales commission. Compensation can also include non-monetary perks such as a company-paid car, company-paid housing and stock options. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. Total compensation has three parts: Base compensation The fixed pay an employee receives on a regular basis, either in the form of a salary or as an hourly wage. Pay incentive A program designed to reward employees for good performance Benefits: sometimes called indirect compensation. Benefits encompass a wide variety of programs (for example, health insurance, vacations) Importance of Compensation Management A good compensation is must for every business organization and helps in the following way: * It tries to give proper return to the workers for their contributions to the organization. * It imparts a positive control on the efficiency of employees and encourages them to perform better and achieve the specific standards. * It forms a basis of happiness and satisfaction for the workforce that minimizes the labour turnover and confers a stable organization...
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...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 the employer based on their job performance; this inspires them to do their best work on a daily basis and gives the employees control of how much they make...
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...Axia College Material Appendix G Sequential and Selection Process Control Structure employee’s salary range and corresponding base tax amount and tax percentage. Given a salary amount, the tax is calculated by adding the base tax for that salary range and the product of percentage of excess and the amount of salary over the minimum salary for that range. In the following example, the second line of the table specifies that tax due on a salary of $2000.00 is $225.00 plus 16% of excess salary over $1500.00 (that is, 16% of $500.00). Therefore, the total tax is $225.00 + $80.00, or $305.00. | |Salary Range in Dollars |Base Tax in Dollars |Percentage of Excess | |1. 1|0.00-1,499.99 |0.00 |15 % | |2. 2|1,500.00-2,999.99 |225.00 |16 % | |3. 3|3,000.00-4,999.99 |465.00 |18 % | |4. 4|5,000.00-7,999.99 |825.00 |20 % | |5. 5|8,000.00-14,999.99 |1425.00 |25 % | Process: 1. Get user input 2. Calculate base tax 3. Calculate tax percentage 4. Calculate...
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...CS121-PROGRAMMING I-FINAL PROJECT Sequential Control Structures Problem 1. Compute the weekly salary, both gross and net for an employee who works hrs hours a week with an hourly rate of rate pesos (assume no overtime). Deductions are sss percent for social security system and 5% for health insurance. Output gross, sss deduction, health insurance deduction, total deductions, and net weekly salary. 2. Find the total cost of four tires if the price list of each is price pesos, VAT is not included which is 10% per tire. Output the total amount of value added tax and the cost of four tires before and after the imposed tax. 3. Determine the yearly income and savings of a person whose weekly income and average monthly expenses are entered. 4. A baseball player is to be paid P pesos for the first year of a 3-year contract. Find the total peso value of the contract over 3 years if the contract calls for an increase of /percent during the second year an J percent of the third year. 5. Workers at a particular company have won an 8.50% pay increase. Moreover, the increase is retroactive for six months. Write a program and flowchart that takes an employee’s previous annual salary as input and then outputs the amount of retroactive pay due the employee, the new annual salary an the new monthly salary. 6. For any 3 numbers, A,B,C. Determine the sums A+B,A+C, and B+C and find the average of these sums. 7. A businesswoman will be unable to pay his loan of P pesos...
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