Compensation Management for excellent courseware notes

Chapter 7
Compensation Management
Section 1
Salary Overview
I
.
Salary description
Salary (
Compensation
)
In a broad sense, employees obtain
Everything
"
Benefits
"
. Including direct and indirect
,
Internal and external, goods
Individual income in all forms of currency and non-currency.
1.
Salary is the price of human resources (from the market perspective)
2.
Compensation is labor remuneration (from the perspective of distribution)
3.
Salary is the target function of employees as economic people (Enterprises
Focus on strategic incentive of Human Resources)
Loose policy environment
Challenging
Satisfactory Office Equipment and Facilities
Interesting
Flexible working hours
Personal growth and development opportunities
Convenient transportation and communication conditions
Ability to participate in decision management
Decent title
Sense of Responsibility
Prestigious social status
Sense of accomplishment
Harmonious interpersonal relationship
Encouraging team spirit
Personal benefits
Salary and other basic levels
Social insurance and other public benefits
Rewards and other short-term rewards
Welfare in life
Equity gains
Salary and leave benefits
Indirect
Compensation
Direct
Compensation
Salary
Reward
Internal salary
External salary
Indirect
Compensation
Direct
Compensation
II
.
Enterprise salary structure
3.
.
Fairness of enterprise compensation
1.
Personal equity
2.
Internal fairness
3.
External fairness
Section 2
Compensation Strategy
Salary strategy refers to the specific salary combination and Payment time
Machine, method, technique, or art.
I
.
Compensation strategies for enterprises in different stages of development
1.
Initial Stage
• Strong external competitiveness;
• Appropriately reduce internal fairness;
• The basic salary structure is relatively small, and the performance salary proportion is large;
• Long-term incentives available
2.
Rapid Growth Stage
• Pay attention to internal fairness;
• Emphasize the external competitiveness of compensation;
• Salary Structure: Increase base salary, increase welfare, and improve performance
The salary should also be fully reflected;
3.
Maturity and stability
• Pay more attention to internal compensation equity;
• There is no special emphasis on external fairness;
• Salary Structure: high base salary, high welfare, and performance salary
Relatively few;
4.
Recession (Reconstruction) Period
• Emphasis on external competitive compensation;
• Salary Structure: higher base salary and benefits, diluted
Performance compensation.
II
.
Personalized design of the overall compensation plan for Enterprises
1.
Overall salary model Concept
•
Overall Concept
• Customer Philosophy
• Performance Philosophy
• Personalized Concept
2.
Composition of overall compensation
•
Guaranteed salary
• Incentive Compensation
• Another form of compensation-Benefits
• Compensation supplement-allowance
• Flexible Compensation-personal development, psychological income, and quality of life
3.
.
Disclosure and confidentiality of Compensation information
1.
Misunderstandings that may occur when you choose confidentiality or public compensation:
Is public compensation disclosed to the public?
Does the confidential salary mean that all salary information is blocked?
2.
Salary information communication is an important part of salary management
• The key lies in the confidentiality or openness.
".
• Confidentiality does not mean to avoid communication of any salary information.
• Openness does not mean that all compensation information is fair.
• Salary information communication is an important part of salary management.
3.
There are three types of salary information to be communicated:
(
1
) Policy Information
• Salary rating basis
• Compensation portfolio
• Policy preferences of special groups
(
2
) Technical Information
• Post Evaluation Information
• Skill/capability information
• Performance Information
• Market Information (Compensation Market)
(
3
) Result class information
• Overall enterprise salary level
• Employee Compensation details list
Remember, no matter whether the salary information is disclosed or not, communication channels
Ensure smooth access.
Thu
.
Application of broadband compensation in Enterprises
1.
What is broadband compensation?
Also known as wide-band compensation, it refers to multiple compensation, etc.
Level and change scope of compensation
Only a relatively small salary level
Wide Range of salary changes.
Salary midline
Positions and positions
Same qualifications
2
8
14
Salary Grade
Wage Standard
4
6
10
18
20
Structure of traditional Compensation System
Salary midline
Market Center
Positions and positions
Same qualifications
2
8
14
Salary Grade
1
2
3
Structure of broadband Compensation System
2.
Benefits of using broadband Compensation
• Overcome the disadvantages of traditional promotion Philosophy
• Expand employees' career paths
• Improve the performance wage ratio and strengthen performance management
• Eliminate communication barriers. Shape learning, equality, and integration
Industry-oriented enterprise culture
3.
Restrictions on bandwidth Compensation
• Broadband compensation is not omnipotent
• Improper Operations will increase labor costs
• The organizational structure of enterprises is usually flat
• Performance management must be in place, otherwise broadband compensation may lead
Greater injustice
• Reshapes corporate culture
Section 3
Compensation Design Based on the factor COUNTING METHOD
This method is used for quantitative comparison by dimensions.
Job value evaluation method. It can be of relative value to the position and
The absolute difference is used for systematic and accurate quantitative evaluation.
This method has high reliability, but the development cost is high,
Relatively difficult.
I
.
Basic Procedures of the factor COUNTING METHOD
1. Determine the evaluation elements of positions (positions;
2. define and classify each evaluation element;
3. determine the number of affected factors;
4. salary levels should be designed in advance;
5. Implementation.
II
.
Disadvantages of the factor COUNTING METHOD
1. The job is regarded as a static process;
2. focusing too much on work and ignoring human nature;
3. The Division of posts is too narrow and rigid;
4. evaluation criteria are not completely objective.
This chapter reviews questions
1.
What is the basic content of the enterprise compensation system?
2.
What are the characteristics of a reasonable salary structure? Example.
3.
How do I select a correct salary strategy?
4.
Combine problems existing in the compensation management of your organization, and use
Knowledge and solutions.
5.
Do you have any good salary management suggestions to share with you?