3. Concept
“Employee compensation (remuneration) refers to
all forms of pay or rewards going to employees
and arising from their employment”
The purpose of Compensation programs is to
attract and retain individuals, provide security
over the long time, and recognize differences in
individual jobs and responsibilities.
4. Compensation Philosophy
Impacts an employer’s ability to attract
and retain employees.
Ensure optimal levels of employee
performance in meeting the organization’s
strategic objectives.
5. Compensation Dimensions
Compensation’s components
Direct compensation in the form of wages or
salary
Base pay (hourly, weekly, and monthly)
Incentives (fixed and sales bonuses and or
commissions)
Types of Leaves & Travel Fair Facility
Indirect compensation in the form of benefits
Legally required benefits (e.g., Social Security,
EOBI)
Optional (e.g., group health benefits)
6. Pay Systems
Job-based
Pay the job (not the person)
Market-based (external equity focus)
Point factor-based (internal equity focus)
Skills / knowledge-based
Pay the person (not the job)
62% of firms used some type of skill based
pay in 2005
8. Requirement For Compensation System
Knowledge of employment and taxation law,
customs, environment and employment practices
of Service Sector Of Pakistan
Familiarity with SPELT fluctuations and the
effect of inflation on compensation.
A good understanding of why and when special
allowances must be supplied and which allowances
are necessary in to retain people.
9. Performance Management
Performance Is Manage at TLP
Employee Innovation
Employee Involvement
Personal Development
Employee Focus On Continuous Improvement
11. What Observer Eye Looking For?
Positive Attitude
Team Orientation
Innovation
Customer Focus
Superior Communication Skills
12. Types & Weightage Of PA
Annual Appraisal
60%, Yearly
Performance based,
Mostly Covers
Support Services
Department.
Mid Year Appraisals
25%, Performance
based, Covers Sales
Department for
Employee Retention
Mid Year Review, for
Balancing Different
Types of
Uncertainty, cover
specific departments.
13. PA In 3 Steps
Evaluating
Performance based on
Year Objective &
Quality Reviews
Rating the Components
Of PA Form & then
Set Grading
Set Grades are
Linked With
Increase In Incentives
14. PA In 3 Steps
Who Evaluate?
HODs, Supervisors, Themselves.
How Evaluate?
Through Rating, Through JDs, Through
Objectives.
What They Return?
Financial Increase, Vertical Growth,
Developmental Opportunities