1、Compensation,员工报酬管理,Goodcareer(才博）专注于培育和发展实战人力资管理专家的专业机构,Learning Objectives,To learn factors which influence how compensation is determined (session 5)To know the definition of “Total Compensation” and how it is perceived by the firm and EEs (session 6)To understand how compensation as an HR practi
2、ce is used to motivate behavior (session 6),Talent Management Strategy Model,Talent Strategy,Business Results,Key Definitions,Compensation Narrow “Monetary (or equivalent) return provided to someone for services rendered.”Compensation BroadBroad definition including intrinsic and extrinsic (includin
3、g financial and non-financial). Might also be thought of as the “return on work” in the same sense as return on investment.Compensation System“The combination of policies, procedures and programs which define compensation opportunities within an organization and which are established and managed to
4、achieve one or more objectives.”Total Compensation ConceptTotal Compensation Concept / Compensation pyramid,A Broad Definition of “Compensation”(Think of these as “returns” on work investment),IntrinsicRewards,Non-financialRewards,FinancialRewards,ExtrinsicRewards,Sense of goal / task accomplishment
5、Satisfaction from goal-directed workPride in workPride in Company purposeSense of growth and learning,Direct pay Base wage / salary Incentive plans Equity ownership awardsBenefits Time off Health & Welfare Retirement Services,Recognition From supervisor From peersAccomplishment awardsService awardsT
6、rainingJob EnrichmentInvolvement opportunitiesUse of technologyAssociation with work group,Compensation Objectives,The “Big Three”Attract qualified employment applicantsRetain qualified employees, while discouraging retention of low performingMotivate employee behavior toward organization objectives
7、,Other Frequently Stated Objectives,Achieve internal equityEmphasis on assessing job content/persons skills or competencies and evaluating relative contribution of work to organizations success (e.g., president versus vice president)Achieve external competitivenessEmphasis on positioning against com
8、petitors payAssure legal compliance,Other Frequently Stated Objectives,Support organization priorities:Strategy and goalsCulture and valuesEasy to administerEasy to understand (for both employees and supervisors),The Pay Model (Milkovich & Newman),POLICIES,COMPENSATION TECHNIQUES,COMPENSATION OBJECT
9、IVES,Internal Consistency,External Competitiveness,EE Contributions,Administration, Planning Budgeting Communicating Evaluating, Seniority based Performance based Merit guidelines Incentive programs, Market definitions Market surveys Pay structures, Work analysis Work/skill descriptions Evaluation I
10、nternal work structure, Efficiency - Performance driven - Customer focus - Cost control Equity Compliance,Comparisons of Pay System Objectives,Astra-MerckShare commitment and responsibility; foster teamworkBalance immediate and strategic interestsCelebrate performancePromote fairnessAchieve simplici
11、tyBe market competitive; pay at the 75th percentile of competitors,Hewlett-PackardHelp H-P continue to attract creative and enthusiastic people who contribute to its successPay among the leadersBe open and understandableEnsure fair treatmentBe innovative, competitive and equitable,Legal Regulations
12、Influencing Compensation,Fair Labor Standards Act (FLSA) of 1938 established provisions for:minimum wage sets the lowest pay an ER can offer an EEhours of work 1.5x regular hourly rate over 40 hrs per weekEqual Pay Act equal pay for equal work for men & womenExempt EEs (executives, administrative an
13、d professional) not subject to minimum wage, hrs of work, overtime provisionsNonexempt EEs subject to minimum wage, hrs of work, overtime provisionsTitle VII of Civil Rights Act prohibits compensation discrimination based on race, color, sex, etc.,Other Influences on Compensation,Economics: Supply a
14、nd Demand for Skills“Compensable Factors”SkillEffortResponsibilityWorking ConditionsFirm Philosophy about Compensation,Other Influences on Compensation,Employee ProductivityEmployee Performance RelativitiesFirm Performance RelativitiesFirms “Ability to Pay”Employee Unionization StatusAn Employees Pe
15、rsonal Skills in Pay Negotiations,Equity Theory,Description Pay should be based upon contributions made by the EE. Higher effort should be rewarded with higher pay.Application to CompensationPay should be tied to the performance level of individual EEs,Equity Theory,My rewards (outcomes) & contribut
16、ions (inputs)My rewards & contributionsMy rewards & contributions,Others rewards & contributionsOthers rewards & contributionsOthers rewards & contributions,=,Equity,Inequity - under,Inequity - over,Terms to Know Sessions 5 & 6,Fair Labor Standards Act (FLSA)Matching the competitionWage rangesTotal compensationExempt EEsNon-exempt EEs,External equityIncentive payMerit payCompensable factorsSeniority-based paySkill-based payEquity theory,
