0% found this document useful (0 votes)
90 views

Compensation: HR Guide To The Internet:: Outline and Definitions

The document discusses compensation as a systematic approach used by companies to provide monetary value to employees in exchange for work through methods such as salaries and wages. It outlines the purposes of compensation including recruitment, performance, and satisfaction, and examines the components of an effective compensation system, including job descriptions, pay structures, and salary surveys. Different types of compensation are also discussed such as base pay, bonuses, and benefits.

Uploaded by

Cool Khushi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
90 views

Compensation: HR Guide To The Internet:: Outline and Definitions

The document discusses compensation as a systematic approach used by companies to provide monetary value to employees in exchange for work through methods such as salaries and wages. It outlines the purposes of compensation including recruitment, performance, and satisfaction, and examines the components of an effective compensation system, including job descriptions, pay structures, and salary surveys. Different types of compensation are also discussed such as base pay, bonuses, and benefits.

Uploaded by

Cool Khushi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 20

HR Guide to the Internet:

Compensation: Outline and Definitions


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.

methods and practices of maintaining balance between interests of operating the company
within the fiscal budget and attracting, developing, retaining, and rewarding high quality staff
through wages and salaries which are competitive with the prevailing rates for similar
employment in the labor market

Introduction. Compensation is probably the least understood process accompanying flow cytometric
analyses. Perhaps this is because it is often described with the linear algebra elements needed for its
computation, and many of us have forgotten what linear algebra is, much less how to do it. However,
proper compensation is absolutely crucial for some aspects of flow cytometry, one of which is antigen
density measurements. Unfortunately, because compensation is often misunderstood, and because
there is so much incorrect mythology about it floating around, many laboratories do not set
compensation properly.

Chapter Highlights

1. How is compensation used?


2. What are the components of a compensation system?
3. What are different types of compensation?

How is compensation used?

Compensation is a tool used by management for a variety of purposes to further the


existance of the company. Compensation may be adjusted according the the business
needs, goals, and available resources.

Compensation may be used to:

 recruit and retain qualified employees.


 increase or maintain morale/satisfaction.
 reward and encourage peak performance.
 achieve internal and external equity.
 reduce turnover and encourage company loyalty.
 modify (through negotiations) practices of unions.

Recruitment and retention of qualified employees is a common goal shared by many


employers. To some extent, the availability and cost of qualified applicants for open
positions is determined by market factors beyond the control of the employer. While an
employer may set compensation levels for new hires and advertize those salary ranges,
it does so in the context of other employers seeking to hire from the same applicant
pool.

Morale and job satisfaction are affected by compensation. Often there is a balance
(equity) that must be reached between the monetary value the employer is willing to pay
and the sentiments of worth felt be the employee. In an attempt to save money,
employers may opt to freeze salaries or salary levels at the expence of satisfaction and
morale. Conversely, an employer wishing to reduce employee turnover may seek to
increase salaries and salary levels.

Compensation may also be used as a reward for exceptional job performance.


Examples of such plans include: bonuses, commissions, stock, profit sharing, gain
sharing.

What are the components of a compensation system?

Compensation will be perceived by employees as fair if based on systematic


components. Various compensation systems have developed to determine the value of
positions. These systems utilize many similar components including job descriptions,
salary ranges/structures, and written procedures.

The components of a compensation system include:

 Job Descriptions A critical component of both compensation and selection


systems, job descriptions define in writing the responsibilities, requirements,
functions, duties, location, environment, conditions, and other aspects of jobs.
Descriptions may be developed for jobs individually or for entire job families.
 Job Analysis The process of analyzing jobs from which job descriptions are
developed. Job analysis techniques include the use of interviews, questionnaires,
and observation.
 Job Evaluation A system for comparing jobs for the purpose of determining
appropriate compensation levels for individual jobs or job elements. There are
four main techniques: Ranking, Classification, Factor Comparison, and Point
Method.
 Pay Structures Useful for standardizing compensation practices. Most pay
structures include several grades with each grade containing a minimum
salary/wage and either step increments or grade range. Step increments are
common with union positions where the pay for each job is pre-determined
through collective bargaining.
 Salary Surveys Collections of salary and market data. May include average
salaries, inflation indicators, cost of living indicators, salary budget averages.
Companies may purchase results of surveys conducted by survey vendors or
may conduct their own salary surveys. When purchasing the results of salary
surveys conducted by other vendors, note that surveys may be conducted within
a specific industry or across industries as well as within one geographical region
or across different geographical regions. Know which industry or geographic
location the salary results pertain to before comparing the results to your
company.
 Policies and Regulations

Principles of Compensation Discussed


Compensation will be perceived as fair if it is comprised of a system of components developed to
maintain internal and external equity.

What are different types of compensation?

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,
taxes...

What are regulations affecting compensation?

 FLSA

Compensation Plans

Develop a program outline.

 Set an objective for the program.


 Establish target dates for implementation and completion.
 Determine a budget.

Designate an individual to oversee designing the compensation program.

 Determine whether this position will be permanent or temporary.


 Determine who will oversee the program once it is established.
 Determine the cost of going outside versus looking inside.
 Determine the cost of a consultant's review.
Develop a compensation philosophy.

 Form a compensation committee (presumably consisting of officers or at least


including one officer of the company).
 Decide what, if any, differences should exist in pay structures for executives,
professional employees, sales employees, and so on (e.g., hourly versus
salaried rates, incentive-based versus noncontingent pay).
 Determine whether the company should set salaries at, above, or below market.
 Decide the extent to which employee benefits should replace or supplement cash
compensation.

Conduct a job analysis of all positions.

 Conduct a general task analysis by major departments. What tasks must be


accomplished by whom?
 Get input from senior vice presidents of marketing, finance, sales, administration,
production, and other appropriate departments to determine the organizational
structure and primary functions of each.
 Interview department managers and key employees, as necessary, to determine
their specific job functions.
 Decide which job classifications should be exempt and which should be
nonexempt.
 Develop model job descriptions for exempt and nonexempt positions and
distribute the models to incumbents for review and comment; adjust job
descriptions if necessary.
 Develop a final draft of job descriptions.
 Meet with department managers, as necessary, to review job descriptions.
 Finalize and document all job descriptions.

Evaluate jobs.

 Rank the jobs within each senior vice president's and manager's department, and
then rank jobs between and among departments.
 Verify ranking by comparing it to industry market data concerning the ranking,
and adjust if necessary.
 Prepare a matrix organizational review.
 On the basis of required tasks and forecasted business plans, develop a matrix
of jobs crossing lines and departments.
 Compare the matrix with data from both the company structure and the
industrywide market.
 Prepare flow charts of all ranks for each department for ease of interpretation
and assessment.
 Present data and charts to the compensation committee for review and
adjustment.
Determine grades.

 Establish the number of levels - senior, junior, intermediate, and beginner - for
each job family and assign a grade to each level.
 Determine the number of pay grades, or monetary range of a position at a
particular level, within each department.

Establish grade pricing and salary range.

 Establish benchmark (key) jobs.


 Review the market price of benchmark jobs within the industry.
 Establish a trend line in accordance with company philosophy (i.e., where the
company wants to be in relation to salary ranges in the industry).

Determine an appropriate salary structure.

 Determine the difference between each salary step.


 Determine a minimum and a maximum percent spread.
 Slot the remaining jobs.
 Review job descriptions.
 Verify the purpose, necessity, or other reasons for maintaining a position.
 Meet with the compensation committee for review, adjustments, and approval.

Develop a salary administration policy.

 Develop and document the general company policy.


 Develop and document specific policies for selected groups.
 Develop and document a strategy for merit raises and other pay increases, such
as cost-of-living adjustments, bonuses, annual reviews, and promotions.
 Develop and document procedures to justify the policy (e.g., performance
appraisal forms, a merit raise schedule).
 Meet with the compensation committee for review, adjustments, and approval.

Obtain top executives' approval of the basic salary program.

 Develop and present cost impact studies that project the expense of bringing the
present staff up to the proposed levels.
 Present data to the compensation committee for review, adjustment, and
approval.
 Present data to the executive operating committee (senior managers and
officers) for review and approval.

Communicate the final program to employees and managers.


 Present the plan to the compensation committee for feedback, adjustments,
review, and approval.

 Make a presentation to executive staff managers for approval or change, and


incorporate necessary changes.

 Develop a plan for communicating the new program to employees, using slide
shows or movies, literature, handouts, etc.

 Make presentations to managers and employees. Implement the program.

 Design and develop detailed systems, procedures, and forms.

 Work with HR information systems staff to establish effective implementation


procedures, to develop appropriate data input forms, and to create effective
monitoring reports for senior managers.

 Have the necessary forms printed.

 Develop and determine format specifications for all reports.

 Execute test runs on the human resources information system.

 Execute the program.

Monitor the program.

 Monitor feedback from managers.


 Make changes where necessary.
 Find flaws or problems in the program and adjust or modify where necessary.

About the Compensation Discipline


The Compensation Discipline deals with the various forms of direct compensation—that is,
employees’ pay—that employers use to attract, recognize and retain workers. It includes
designing and administering compensation systems including base pay, differential and incentive
pay, and overtime. It also includes matters that focus on compensation-related careers,
communications, legal and regulatory issues, technology, metrics and outsourcing, as well as
effective compensation practices and global compensation issues. It does not include the various
forms of indirect employee compensation—commonly referred to as “benefits,” which are
encompassed in the Benefits Discipline.

Variable Pay: How to Manage it Effectively


Variable pay is a significant element of the direct compensation package of a growing number of
organizations.

The Compensation Scorecard: What Gets Measured Gets Done


Employee compensation, one of the largest expenses in any organization, is also one of the least
managed.

FAQs on Rewards Strategy


Simran Oberoi, a Knowledge Advisor with SHRM India, answers some of the frequently asked
questions on Rewards Strategy.

Implementing Total Rewards Strategies


Here's a guide to successfully planning and implementing a total rewards system.

CASE STUDY SERIES: Designing a Pay Structure: A Case Study and Integrated Exercises
Compensation is a critical area of HR that can greatly affect employee behavior. To be effective,
compensation must be perceived by employees as fair, competitive in the market, accurately
based, motivating and easy to understand.

Employers Assessing Salary Programs for Affordability, Competitiveness


Communication challenge: Just 51% inform employees of their position's full salary range

IT, ITES Sectors Lead The Pack In Salary Increments This Year
Although firms are expected to add more staff, most of the talent especially in the middle to
senior management roles will remain in their current organizations, reveals Kelly Services'
Employment Outlook and Salary Guide 2010-11.

Attrition woes spark salary increases; focus on pay for performance to intensify
Employees in India can expect an overall average salary increase of 11.6% in 2010, according to
a recent Mercer India Monitor survey.  

10 Executive Comp Issues For Aligning Pay Strategy


Understanding these key executive compensation issues can help HR professionals to better
integrate executive compensation with overall pay strategy throughout the organization.

Bonuses Are Back, With Emphasis On Hard Measures


More companies globally are awarding bonuses in 2010, but bonuses are more likely to be
strongly tied to the bottom line with more challenging targets and greater focus on return on
investment.  

About the Compensation Discipline


The Compensation Discipline deals with the various forms of direct compensation—that is,
employees’ pay—that employers use to attract, recognize and retain workers. It includes
designing and administering compensation systems including base pay, differential and incentive
pay, and overtime. It also includes matters that focus on compensation-related careers,
communications, legal and regulatory issues, technology, metrics and outsourcing, as well as
effective compensation practices and global compensation issues. It does not include the various
forms of indirect employee compensation—commonly referred to as “benefits,” which are
encompassed in the Benefits Discipline.

Firms develop pay-for-performance culture in response to economic recovery in Asia


According to the Mercer Asia Executive Remuneration Snapshot Survey, approximately 30-40%
of an executive’s total pay package is linked to variable pay regardless of the type of
organization.

TEMPORARY STAFFING INDUSTRY TO GROW BY 18% OVER THE NEXT ONE YEAR
Now that salary increments are back, a 7.5% to 15% raise for temporary staff is seen to be well
in order to retain well-skilled people: TeamLease.

Managing Compensation during Down Times: Linking Pay to Performance


Compensation will always be a critical part of employment, influencing productivity, motivation,
retention and much more. And HR has a strong influence and role in both the process and the
policies behind it.

India Inc. Expected To Take Home Double Digit Increments


Salary increase for 2010 in India is projected to be 10.6%, the highest in Asia Pacific and up
60% from the actual increase of 6.6% in 2009, reveals Hewitt Associates Salary Increase Study

GLOBAL DECLINE IN PERSONAL TAX RATES MAY REVERSE DUE TO DEFICITS,


STIMULUS FUNDING PRESSURES
KPMG findings highlight social security rates as important factor to consider in international
assignment program decisions and discussions

KPMG India ED on Personal Tax Rate Rationalization


Taxes on personal income are on slow decline in many countries, which is akin to fall in
corporate income-tax rates across the globe

IMPORTANCE OF COMPENSATION
Compensation and Reward system plays vital role in a business organization. Since, among four
Ms, i.e. Men, Material, Machine and Money, Men has been most important factor, it is
impossible to imagine a business process without Men. Every factor contributes to the process of
production/business. It expects return from the business process such as rent is the return
expected by the landlord, capitalist expects interest and organizer i.e. entrepreneur expects
profits. Similarly the labour expects wages from the process.

Labour plays vital role in bringing about the process of production/business in motion. The other
factors being human, has expectations, emotions, ambitions and egos.

Labour therefore expects to have fair share in the business/production process. Therefore a fair
compensation system is a must for every business organization. The fair compensation system
will help in the following:

o An ideal compensation system will have positive impact on the efficiency and results
produced by employees. It will encourage the employees to perform better and achieve
the standards fixed.

o It will enhance the process of job evaluation. It will also help in setting up an ideal job
evaluation and the set standards would be more realistic and achievable.

o Such a system should be well defined and uniform. It will be apply to all the levels of the
organization as a general system.

o The system should be simple and flexible so that every employee would be able
to compute his own compensation receivable.

o It should be easy to implement, should not result in exploitation of workers.

o It will raise the morale, efficiency and cooperation among the workers. It, being just and
fair would provide satisfaction to the workers.

o Such system would help management in complying with the various labor acts.
o Such system should also solve disputes between the employee union and management.

o The system should follow the management principle of equal pay.

o It should motivate and encouragement those who perform better and should provide
opportunities for those who wish to excel.

o Sound Compensation/Reward System brings peace in the relationship of employer and


employees.

o It aims at creating a healthy competition among them and encourages employees to work
hard and efficiently.

o The system provides growth and advancement opportunities to the deserving employees.

o The perfect compensation system provides platform for happy and satisfied workforce.
This minimizes the labour turnover. The organization enjoys the stability.

o The organization is able to retain the best talent by providing them adequate
compensation thereby stopping them from switching over to another job.

o The business organization can think of expansion and growth if it has the support of
skillful, talented and happy workforce.
o The sound compensation system is hallmark of organization’s success and prosperity.
The success and stability of organization is measured with pay-package it provides to its
employees.

Compensation & Benefits: Definitions & Importance.


80

rate or flag this pageTweet this

By NNazir

Human Resource Management (HRM) has never been as significant as it is today. Companies
want to attract, retain and motivate brains to meet objectives. Today Humans are regarded as one
of every company’s assets so they need to be efficiently and effectively managed. One of the
tools companies use to attract, retain and motivate its people is Compensation Management. In
this hub, I shall define compensation and benefits along with their advantages for a company and
its workers.

Suppose, you own a boutique. Lets call it myWear - or you can give it any name of your liking.
You have hired three salespersons and a receptionist. The salespeople are responsible to look
after the sales affairs. The receptionist's duties are to handle the cash and manage the account
books. I shall refer to this illustration throughout the hub.

COMPENSATION:
Would the three salespersons and the receptionist work for free? No. They would, like us all,
expect something in return. You must have heard a common phrase: Give and Take. You always
have to give things to people in return to what you take from them. Compensation refers to this
exchange, but in monetary terms. Compensation is the employer's feedback for an employee's
work. It simply is the monetary value you would give to your four employees in return of their
services.

Gary Dessler in his book Human Resource Management defines compensation in these words
"Employee compensation refers to all forms of pay going to employees and arising from their
employment." The phrase 'all forms of pay' in the definition does not include non-financial
benefits, but all the direct and indirect financial compensations. I shall, Inshallah, explain the two
terms in my next hub 'Parts of Salary'.

Advantages of Compensation.

BENEFITS:
Employees today are not willing to work only for the cash alone, they expect 'extra'. This extra is
known as employee benefits. Also known as fringe benefits, Employee benefits are non-financial
form of compensation offered in addition to cash salary to enrich workers’ lives.

What benefits would you offer to your employees at myWear? Off course, you would offer
different benefits to the salespersons and the receptionist. Problem will arise when you begin to
decide what benefit to give to whom and on which basis? Employee benefits are not
performance-based, they are membership-based. Workers receive benefits regardless of their
performances. Employee benefits as a whole have no direct affect on employee performance,
however, inadequate benefits do contribute to low satisfaction level and increase absenteeism
and turnover in employees (DeCenzo and Robbins; 2007). So you would have to carefully design
your benefit package. Your package may include a cell phone to each worker, taking them to a
training workshop or seminar, giving them a day or two off every month and so on. While
deciding on the benefits package, do consider the associated costs.

ADVANTAGES OF COMPENSATION & BENEFITS


Advantages to Your Boutique:
A well designed compensation and benefits plan helps to attract, motivate and retain talent in
your firm (which is myWear). A well designed compensation & benefits plan will benefit your
boutique in the following ways.

1. Job satisfaction: Your employees would be happy with their jobs and would love to work for
you if they get fair rewards in exchange of their services.
2. Motivation: We all have different kinds of needs. Some of us want money so they work for
the company which gives them higher pay. Some value achievement more than money, they
would associate themselves with firms which offer greater chances of promotion, learning and
development. A compensation plan that hits workers’ needs is more likely to motivate them to
act in the desired way.

3. Low Absenteeism: Why would anyone want to skip the day and watch not-so-favorite TV
program at home, if they enjoy the office environment and are happy with their salaries and get
what they need and want?

4. Low Turnover: Would your employees want to work for any other boutique if you offer them
fair rewards. Rewards which they thought they deserved?

Advantage to Your Employees:


1. Peace of Mind: your offering of several types of insurances to your workers relieves them
from certain fears. Your workers as a result now work with relaxed mind.
2. Increases self-confidence: Every human being wants his/her efforts to get acknowledgment.
Employees gain more and more confidence in them and in their abilities if they receive just
rewards. As a result, their performance level shoot up.

I hope this hub added to your knowledge of compensation management.

TYPES OF COMPENSATION

There are two different types of compensation management: direct and indirect. Compensation is
the combination of monetary and other benefits provided to an employee in return for their time
and skill. The field of compensation management provides management with the ideal
combination of the different remuneration types. The purpose of this type of program is to retain
and motivate good employees.

Direct compensation is typically comprised of salary payments and health benefits. The creation
of salary ranges and pay scales for different positions within the company are the central
responsibility of compensation management staff. The evaluation of the employee and employer
portions of benefit costs is an important part of a compensation package.

Effective compensation plans are routinely compared with other firms in the same industry or
against published benchmarks. Although some jobs are unique within a specific firm, the vast
majority of positions can be compared to similar jobs in other firms or industries. Direct
compensation that is in line with industry standards provides employees with the assurance of
fair compensation. This process helps the employer avoid the costly loss of trained staff to a
competitor.

Ads by Google
Compensation Total Reward
Online Planning and Management Merit, Bonus, Stock, Total Rewards
www.focalreview.com
Human Capital Management
Improve outcomes using integrated workforce management solutions.
www.apihealthcare.com
Employee Performance
Dashboard Software. Set goals, monitor progress. View Demo.
Corporater.com/Employee-Performance
Motivate Your Employees
Gift Vouchers for Every Interest, Every Occasion & Everyone. Buy
Now!
SnapDeal.com/Motivational-Ideas
HDFC Hiring for March
2500+ Job Openings across India Register Free.Apply for HDFC Now!
TimesJobs.com/HDFC+Bank+Jobs

Indirect compensation focuses on the personal motivations of each person to work. Although
salary is important, people are most productive in jobs where they share the company’s values
and priorities. Common types of indirect compensation include free staff development courses,
subsidized day care, opportunity for promotion or transfer within the company, public
recognition, ability to effect change in the workplace and service to others.

An effective compensation package has a combination of direct and indirect compensation.


Compensation management programs often include a salary range for each position, with
incremental increases and annual reviews. During these review sessions both type of
compensation management are addressed and presented to the employee as part of the total
package.

Performance Management
Compensation Management
Hr Manager
Strategic Compensation Management
Compensation Management Solutions
Compensation Management Software
Compensation Manager
Ads by Google
Sales Compensation
Compensation Damages
Workman Compensation
Employee Management

Regular evaluation of the total compensation program and continual modifications is necessary
to meet the changing needs of employees. Many firms invest time and resources to ensure that all
employees are aware of the total compensation package that is available. This encourages
employees to provide valuable feedback on the types of compensation programs that are most
important to them.

Human resources departments are responsible for the creation and management of the
compensation program. A compensation management professional usually has a degree in
human resources and skills with data management, statistics, and report creation. Creative
compensation packages must be in keeping with the company’s vision and identify to be
effective.

1.Direct compensation
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.

Basic Salary

Salary is the amount received by the employee in lieu of the work done by him/her for a certain
period say a day, a week, a month, etc. It is the money an employee receives from his/her
employer by rendering his/her services.


House Rent Allowance

 Organizations either provide accommodations to its employees who are from different
state or country or they provide house rent allowances to its employees. This is done to
provide them social security and motivate them to work.

Conveyance

Organizations provide for cab facilities to their employees. Few organizations also
provide vehicles and petrol allowances to their employees to motivate them.

Leave Travel Allowance

These allowances are provided to retain the best talent in the organization. The
employees are given allowances to visit any place they wish with their families. The
allowances are scaled as per the position of employee in the organization.

Medical Reimbursement

Organizations also look after the health conditions of their employees. The employees are
provided with medi-claims for them and their family members. These medi-claims
include health-insurances and treatment bills reimbursements.

Bonus

Bonus is paid to the employees during festive seasons to motivate them and provide them
the social security. The bonus amount usually amounts to one month’s salary of the
employee.

Special Allowance

Special allowance such as overtime, mobile allowances, meals, commissions, travel


expenses, reduced interest loans; insurance, club memberships, etc are provided to
employees to provide them social security and motivate them which improve the
organizational productivity.  

2. indirect comp.

Indirect Compensation

Payroll Home » Compensation » Indirect Compensation

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.
Leave Policy

It is the right of employee to get adequate number of leave


while working with the organization. The organizations
provide for paid leaves such as, casual leaves, medical leaves
(sick leave), and maternity leaves, statutory pay, etc.

Overtime Policy

Employees should be provided with the adequate allowances and facilities during their overtime, if they
happened to do so, such as transport facilities, overtime pay, etc.

Hospitalization

The employees should be provided allowances to get their regular check-ups, say at an interval of one
year. Even their dependents should be eligible for the medi-claims that provide them emotional and
social security.

Insurance

Organizations also provide for accidental insurance and life insurance for employees. This gives them the
emotional security and they feel themselves valued in the organization.
Leave Travel

The employees are provided with leaves and travel allowances to go for holiday with their families.
Some organizations arrange for a tour for the employees of the organization. This is usually done to
make the employees stress free.

Retirement Benefits

Organizations provide for pension plans and other benefits for their employees which benefits them
after they retire from the organization at the prescribed age.

Holiday Homes

Organizations provide for holiday homes and guest house for their employees at different locations.
These holiday homes are usually located in hill station and other most wanted holiday spots. The
organizations make sure that the employees do not face any kind of difficulties during their stay in the
guest house.

Flexible Timings

Organizations provide for flexible timings to the employees who cannot come to work during normal
shifts due to their personal problems and valid reasons.  

Medical practice The aggregate of benefits–eg, payment of health and malpractice insurance permiums,
pension contribution, books and journal subscriptions, paid CME, paid vacation, car leasing, etc, given to
an employee in addition to a base salary or wages. Cf Direct compensation.

: Examples of indirect compensation include:


 Short-term incentive pay

 Differential pay

 Merit pay
Differences

Direct compensation is an employee's base wage. It can be an annual salary, hourly wage or any
performance-based pay that an employee receives, such as profit-sharing bonuses.

Indirect Compensation is far more varied, including everything from legally required public
protection programs such as Social Security to health insurance, retirement programs, paid leave,
child care or housing.

>Direct- Say if you were of an ethnic minority and you went for a job and you were told
when you arrived that the job was taken. You then arrange for a "white" friend to go for
the same job and they are told it is still available. Or if you were at a job interview and you
state that you have 4 children and the interviewer makes a remark about you having to
have a lot of time off work.

-->Indirect- If you went for a job that states anyone who applies must have at least 10 years
experience in the position which would put a young person at a disadvantage. Or if there
were disabled facilities but they had to be accessed from the rear of the building next to the
rubbish bins etc and everyone else goes in thru the front door. They're still providing the
facilities and still saying anyone can use them but they're putting those people at a
disadvantage or humiliation.

You might also like