Employee compensation, is a central part of the employment relationship. From the employees’ point of view, policies having to do with wages, salaries, and other earnings have a major impact on their overall income and thus their standard of living. Both the level of pay and how fair it seems compared with others’ pay is important. Pay is also often considered a sign of status and success. Employees attach great importance to pay decisions must be carefully managed and communicated.
From the employer’s point of view, pay is a powerful tool for furthering the organization’s strategic goals. First, pay has major impact on employee attitudes and behaviours. It influences the kind of employment who is attracted to (and remain with) the organisation, and it can be a powerful tool for aligning current employees’ interest with those of the broader organisation. Second, employee compensation is typically a significant organisational cost and thus requires close scrutiny.
- Explain the basic principles and major elements of compensation.
- Use the various processes in compensation: Job Analysis, Job Descriptions and Job Evaluation.
- Determine and explain what constitutes a sound and effective compensation and benefits program
- Design a salary structure and related policies.
- Construct the basic compensation survey process.
Lectures, syndicate work, case study
- Highlight other types of compensation strategies
- How to build a compensation structure
- Steps involved in developing a merit-based pay program
- Discuss communication steps necessary to insure success of a program
- The importance of establishing the company’s pay philosophy before creating a compensation plan
- The building blocks of a compensation program, including job analysis, job description, and job evaluation
- To create a base-pay compensation program in their organizations
- Business life cycles - discussion on the life cycles and where companies fit in
- Pay philosophies in your company – tie in upper management’s philosophies
- Discuss job description processes and matching talent needs
- Elements of compensation
- Types of compensation systems
- Executive compensation – the effect of the Employment Act
- Develop an effective compensation system that meets company needs