HRM Assignment

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 3

K.

Sreekanthi
MBA-A
160122672025

HUMAN RESOURCE MANAGEMENT ASSIGNMENT-1

5 Key Components of a Compensation Strategy.

An effective compensation strategy can help a company's hiring process become more
efficient. These strategies typically combine a company's hiring budget with a compensation
package in an attempt to recruit the right candidates.

A compensation strategy typically includes four key components:

1. Base pay

Base pay refers to an employee's salary or hourly pay for their particular job. It's the amount
the company and individual agree upon during the hiring process, which can also be
commensurate with their level of education and skills. When determining the amount of base
pay, it's also necessary to decide the frequency. Some employers may pay weekly, whereas
others may pay biweekly or monthly.
2. Incentive pay

Providing incentive pay can also help encourage employees to complete certain goals or to
meet performance objectives at a set time. It's a type of indirect pay that typically offers
additional compensation outside of an employee's regular job tasks or benefits, such as:
● Referral compensation
● Commission payment
● Bonus payment
● Overtime payment
● Cost of living increase
● Profit-sharing
● Stock options

3. Employee benefits

Employee benefits are the additional benefits that employees receive besides their base
pay, which may include:
● Health insurance
● Dental insurance
● Vision insurance
● Short- and long-term disability
● Life insurance
● Retirement contributions
● Company vehicle
● Phone allowance
● Gym memberships
● Travel benefits

4. Time off

Time off refers to a company program that compensates employees when they're not at
work. Most companies require employees to work for the organization for a specific time
period before being eligible for this type of compensation. They may also require that the
employee work a specific schedule, such as full-time employment.

Time off may include:


● Paid time off
● Vacation time
● Personal leave
● Maternal or paternal leave

Implementation of Strategy by Amazon

Introduction-: Amazon.com, is an American multinational technology company focusing on


e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence.
It has been often referred to as "one of the most influential economic and cultural forces in
the world",[5] and is often regarded as one of the world's most valuable brands.[6] It is
considered as one of the Big Five American technology companies, alongside Alphabet
(parent company of Google), Apple, Meta (formerly Facebook Inc.) and Microsoft.

● Compensation at Amazon-: Salaries at Amazon.com Inc range from an average of


₹249,761 to ₹3,328,145 a year. Amazon.com Inc employees with the job title Senior
Solutions Architect make the most with an average annual salary of ₹4,726,969,
while employees with the title Retail Associate make the least with an average
annual salary of ₹214,499.

● Incentive Pay at Amazon-: Amazon Incentives offers flexible gift card options for
your business with no fees. Order physical gift cards, email gift cards, claim codes,
and more.

● Employee Benefits-: In many locations, the bonus is around $5000 and upwards in
the first year and $2000+ in the second year. Bonuses are paid out in lump sum for
the first year (Year 1) on the first paycheck in Amazon.

● Time Off-: Depending on the number of years you've worked at Amazon: Part-time
workers can earn between 5-10 days of Amazon vacation time. Reduced-time
workers can earn between 7.5-15 days of Amazon vacation time. Full-time workers
can earn between 10-20 days of Amazon vacation time.

You might also like