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    Assignment On Compensation Management

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    Atul Raj
    The document discusses current trends and practices in compensation management, noting that compensation must attract and retain capable employees. It outlines elements of compensation like salary, bonuses, benefits, and trends like skill-based pay, broad banding, comparable worth, and variable pay plans. The document also discusses how HR's role is changing to prioritize the complete employee experience and ensure pay equity.

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    © All Rights Reserved
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    Assignment On Compensation Management

    Uploaded by

    Atul Raj
    2K views5 pages
    The document discusses current trends and practices in compensation management, noting that compensation must attract and retain capable employees. It outlines elements of compensation like salary, bonuses, benefits, and trends like skill-based pay, broad banding, comparable worth, and variable pay plans. The document also discusses how HR's role is changing to prioritize the complete employee experience and ensure pay equity.

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    Assignment on Compensation Management

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    The document discusses current trends and practices in compensation management, noting that compensation must attract and retain capable employees. It outlines elements of compensation like salary, bonuses, benefits, and trends like skill-based pay, broad banding, comparable worth, and variable pay plans. The document also discusses how HR's role is changing to prioritize the complete employee experience and ensure pay equity.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    2K views5 pages

    Assignment On Compensation Management

    Uploaded by

    Atul Raj
    The document discusses current trends and practices in compensation management, noting that compensation must attract and retain capable employees. It outlines elements of compensation like salary, bonuses, benefits, and trends like skill-based pay, broad banding, comparable worth, and variable pay plans. The document also discusses how HR's role is changing to prioritize the complete employee experience and ensure pay equity.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    The key takeaways are the different elements of compensation like salary, bonuses, benefits etc. and current trends in compensation management like skill-based pay, broad banding, variable pay plans etc.

    The different elements of compensation discussed are monthly wages and salaries, bonuses, economic benefits like paid holidays and leave travel concession, contribution towards insurance and retirement benefits, and transport and medical facilities.

    Some current trends in compensation management according to the document are skill-based pay, broad banding, comparable worth or pricing method, cafeteria approach, and variable pay plans.

    Assignment on Compensation Management

    ​on
    Current Trends And Practices In Compensation Management

    SUBMITTED BY

    Name:​ Atul Raj


    Enrollment no:​ A3590617006
    Course:​ B.com(H)
    Sem: ​VI
    Session:​ 2017-2020

    SUBMITTED TO
    ​Ms. Mona Ratnesh
    ( Assistant Professor )
    Compensation Meaning
    Compensation means the basic returns that an employee obtains from his/her work. Every
    organization offers good compensation to attract and retain the ablest employees on the actual
    work floor. ​Compensation refers to a wide range of financial non non-financial
    rewards to employees for their services rendered to the organization. It is paid in the
    form of wages, salaries and employee benefits such as paid vacations, insurance,
    maternity leave, free travel facility, retirement benefits etc.

    Compensation should be designed that it achieves the following objectives:

    ​ 1. Capable employees are attracted towards the organization.

    2. The employees are motivated for better performance.

    3. The employees do not leave the employer frequently.

    Elements of Compensation:

    1. Monthly wage & salary including basic wage, house rent allowance, dearness
    allowance and city compensatory allowance.
    2. Bonus at the end of the year.
    3. Economic benefits such as paid holidays, leave travel concession.
    4. Contribution towards insurance premium.
    5. Contribution towards retirement benefits such as employee provident fund.
    6. Transport and medical facilities.

    Current Trends and Practices In Compensation Management


    Compensation in present days to be studied is a need for achieving competent employees to
    bring effectiveness in day to day operation of the organization. It must be complete and at the
    satisfactory level of employees. Many studies have been taking place in recent few past years
    regarding compensation.

    1
    HR’s role in the organization will change: ​HR and compensation professionals will need to
    know how their roles and responsibilities fit into the overall employee experience.
    Self-service and augmented-service offerings in HR will become the new normal, and
    best-in-class organizations will begin to goal their HR leaders on employee service and
    satisfaction metrics.

    HR will prioritize employee experience to drive engagement:​Focusing on the complete


    employee experience, rather than considering employee engagement or corporate culture
    standalone initiatives, will allow HR to deliver real, measurable results in 2018. Rather than
    relying on once-annual engagement surveys, the most successful HR departments will
    leverage ongoing employee net promoter score assessments to track their progress in real
    time.

    More stakeholders will influence compensation decisions: ​As more managers, recruiters,
    and HR business partners join discussions about compensation, comp professionals will need
    to adjust how they plan and budget to account for a new diversity of inputs. Changes to the
    compliance landscape, like bans on inquiring about candidate salary histories during the
    interview process, will mean that far-reaching and ever-evolving training programs will be
    required to keep these organization.

    Communication and enablement will empower managers to do more​: In compensation,


    this often means asking managers to do the heavy lifting around communicating comp
    strategy to the organization. Successful compensation professionals will look to close existing
    gaps in managers’ comp knowledge and their ability to effectively communicate about pay.

    Compensation’s conscience will pay dividends​: HR and compensation professionals will


    need to refocus pay equity discussions around business outcomes to drive action. Pay equity
    is a critical part of the overall employee experience, and making pay equity a priority can
    positively impact an organization’s bottom line. With research showing that less than half of
    all organizations currently have a formal process in place to address pay equity, this work
    will start with simply putting a process in place.

    2
    New Trends in Compensation Management
    The following are the new trends in compensation management Group Mediclaim/Insurance
    Scheme, Personal Accident Insurance Scheme, Company Leased Accommodation,
    Recreation/ATM facilities, Corporate Credit Card, Club memberships, Cellular
    Phone/Laptop, Personal Health Care (Regular medical check-ups), Loans, Educational
    Benefits (For Higher studies), Regular Get together and other cultural programs, Wedding
    Day/Birthday Gift, Employee Referral Scheme, Maternity Leave, Paternity Leave, Work-life
    Balance, Pay Transparency, Broad banding, Variable Pay (Incentive Pay), Flexible Benefits,

    Those current issues about compensation management are

    ● Skill-based pay: Compensation to employees is made on the basis of skills. Skill


    makes the person competent to perform the job. The basis of the job is moving away
    from job base to competency based. Competency is a person’s skills, knowledge, and
    behavior that enable performance. Job-based pay considers the value of a current job
    based on job title. Under this method, skilled, semi-skilled and unskilled employees
    are grouped and compensation is made to them affording their competency.
    ● Broad banding: Reduced number of ranges of salary into a low number of the range
    is called broad banding. Generally, several grades are divided into three bands like
    clerical bands, professional bands, and managerial bands. It provides flexibility for
    employee’s assignment.
    ● Comparable worth or pricing method: Pricing job is an equity pay. The brand of
    compensating employees is to be on the basis of the value of the job which gets the
    certain price. The main objective of developing this trend is to overthrow the inequity
    between male and female with respect to their compensation. It avoids races and class
    discrimination to their compensation. Under this method, the weight of each job is
    determined by considering its factors and certain value is given and on the basis of
    value, compensation is determined.
    ● Cafeteria approach: ​The important current trend in compensating employees is the
    cafeteria approach that consists of pay plus benefits and services. The employee picks
    benefits and services as per needs within the limit of the pay package.

    3
    ● Variable pay plans: Variable pay plans are also a current issue in compensation
    management. The use of a variable pay system is increasing. This system is based on
    improving production and sharing of prosperity.

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