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    Remuneration

    Uploaded by

    Joel Heath
    The document discusses employee remuneration, which is the compensation an employee receives in return for their contributions. Remuneration aims to attract, motivate, and retain capable employees. It is influenced by internal factors like productivity and external factors like cost of living. Remuneration includes financial compensation like wages and salaries as well as non-financial benefits. When devising remuneration plans, companies evaluate jobs, establish job hierarchies, conduct pay surveys, and set pay levels and grades. Remuneration differs from compensation in that it includes both cash payments and benefits.

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    Remuneration

    Uploaded by

    Joel Heath
    232 views15 pages
    The document discusses employee remuneration, which is the compensation an employee receives in return for their contributions. Remuneration aims to attract, motivate, and retain capable employees. It is influenced by internal factors like productivity and external factors like cost of living. Remuneration includes financial compensation like wages and salaries as well as non-financial benefits. When devising remuneration plans, companies evaluate jobs, establish job hierarchies, conduct pay surveys, and set pay levels and grades. Remuneration differs from compensation in that it includes both cash payments and benefits.

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    The document discusses employee remuneration, which is the compensation an employee receives in return for their contributions. Remuneration aims to attract, motivate, and retain capable employees. It is influenced by internal factors like productivity and external factors like cost of living. Remuneration includes financial compensation like wages and salaries as well as non-financial benefits. When devising remuneration plans, companies evaluate jobs, establish job hierarchies, conduct pay surveys, and set pay levels and grades. Remuneration differs from compensation in that it includes both cash payments and benefits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    232 views15 pages

    Remuneration

    Uploaded by

    Joel Heath
    The document discusses employee remuneration, which is the compensation an employee receives in return for their contributions. Remuneration aims to attract, motivate, and retain capable employees. It is influenced by internal factors like productivity and external factors like cost of living. Remuneration includes financial compensation like wages and salaries as well as non-financial benefits. When devising remuneration plans, companies evaluate jobs, establish job hierarchies, conduct pay surveys, and set pay levels and grades. Remuneration differs from compensation in that it includes both cash payments and benefits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 15

    Remuneration

    Remuneration in other terms also called as Employee Compensation which an employee receives in return for his or her contribution to the organization. For employer too remuneration is important because of contribution to the cost of production.

    Objectives Of Employee Remuneration


    Attract capable employees to the organization. Motivate them toward superior performance. Retainment of their services over an extended period of time. To study remuneration policy of employees. To study relation between performance and remuneration of employees. To study challenges faced by employees for remuneration. To study factors influencing employees for remuneration.

    Factors affecting Remuneration


    Internal Factors : Ability to pay Productivity of labor Business strategy The employee Goodwill of company Job evaluation & performance appraisal Non Financial Benefits Employee benefits

    External Factors
    Demand Supply Cost of living Bargaining power of unions Labor rates Condition of product market Comparative wage Government policy Society

    Classification of Remuneration
    COMPENSATION

    Financial

    Non financial

    Direct

    Indirect

    Job Content Challenges & Responsibilities

    Hourly Wages & Monthly Salary

    Incentives

    Fringe Benefits

    Perquisites

    Classification & Components of Remuneration


    Wage & Salary- Wages refers to hourly rates of pay and salary refers to monthly rate of pay.
    Incentives Payments by result, depends upon productivity, sales, profit, or cost reduction. Fringe Benefits employee benefits such as PF, Gratuity, Medical care, Hospitalization, Accident relief, Canteen, Uniform, Recreation etc.

    Perquisites Includes Company car, Club membership, Paid holidays, furnished house, stock options, etc. these are provided to retain the employees.
    Non Monetary Benefits includes challenging jobs, responsibilities, recognition of merit, growth prospects, comfortable working, job sharing, flexi time etc.

    Devising a remuneration plan


    Remuneration plan should be understandable workable acceptable

    Devising Remuneration Plans


    Job Description Job Evaluation
    Job Hierarchy Pay Survey Pricing Jobs Pay Levels Pay Grades

    Job description
    Helps to define and weigh compensable factors eg skills, experience, effort

    Job evaluation
    To establish relative worth of jobs

    Job hierarchy
    Established by aggregating all points assigned to the compensable factors Higher point total is higher hierarchy

    Pay surveys sources

    To establish prevailing wage and salary rates in the labour market


    Other companies Labour dept Trade unions Consulting firms

    Pricing jobs

    Establishing the appropriate level for each job Grouping the different pay levels into pay grades

    Difference between Compensation & Remuneration

    Comp is usually used in a more negative sense. That is: If you have been injured in an accident the other person will "compensate you for your loss." If you have to work overtime you will be compensate for the inconvenience. Remuneration is used in a more positive manner. You will be given suitable remuneration for your hard work. Suitably qualified applicants will be remunerated accordingly. Compensation= Cash payments only - salaries, bonus, variable pay

    Remuneration = Compensation + Benefits

    Wages
    Hourly payment depending upon type of task, productivity, skills, capabilities to the workers. A wage policy offers certain guidelines for determining a wage structure. The term wage structure refers to various pay scales showing rages of pay within each grade. Three important elements of wage policy in India need to be elaborated here

    Minimum wage: Wage sufficient to sustain and preserve the efficiency of the worker and offer basic amenities of life
    Fair wage: It is above the minimum wage but below the living wage. It is fixed, taking into account factors such as the productivity of labour, prevailing wage rates, level of national income and its distribution, the employers capacity to pay etc. Living wage: This is the highest amount of wages proposed by the government, offering basic amenities of life and satisfying the social needs of worker.

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