Designing of Types for Compansation

1. DESIGNING OF TYPES FOR
COMPENSATION
BY
SYED MINHAJ UR REHMAN

2. • Human Resource is the most vital resource for any
organization.
• It is responsible for each and every decision taken, each
and every work done and each and every result.
• Employees should be managed properly and motivated
by providing best remuneration and compensation as per
the industry standards.
• The good compensation will also serve the need for
attracting and retaining the best employees.

3. • Compensation Management is designing and
implementing total compensation package with a
systematic approach to providing value to employees in
exchange for work performance,
• 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

4. • To recruit & retain qualified employees.
• To increase or maintain morale.
• To determine basic wage & salary.
• To reward for job performance.

5. • Direct Compensation
• Indirect Compensation

6. • Direct compensation refers to monetary benefits offered
and provided to employees in return of the services they
provide to the organization.
• The monetary benefits include basic salary, house rent
allowance, conveyance, leave travel allowance, medical
reimbursements, special allowances, bonus, Pf/Gratuity,
etc. They are given at a regular interval at a definite
time.

8. • Indirect compensation refers to non-monetary
benefits offered and provided to employees in lieu of
the services provided by them to the organization.
• They include Leave Policy, Overtime Policy, Car
policy, Hospitalization, Insurance, Leave travel
Assistance Limits, Retirement Benefits, Holiday
Homes

11. • Wage & salary.
• Base pay
• Merit pay
• Fringe benefits
• Perquisites

12. Different types of compensation include:
•Base Pay
•Commissions
•Overtime Pay
•Bonuses, Profit Sharing, Merit Pay
•Stock Options
•Travel/Meal/Housing Allowance
•Benefits including: dental, insurance, medical,
vacation, leaves, retirement

13. • The design process is started by identifying desired
outcomes and goals for your organization. This is often
referred to as developing your compensation philosophy.
Your philosophy is formed by considering a number of
factors. The balance of direct and indirect rewards, the
complexity and responsibility of a role and the candidate
or employee filling it, as well as your focus on internal
versus external equity are just few factors explored in this
section. It is the ability to achieve results that is critical to
organizational success.