The document discusses new trends in compensation management, including benefits like health insurance, accommodations, loans, education assistance, work-life balance policies, and variable pay. It provides details on approaches to compensation like pay transparency, broad banding, incentive pay, employee stock ownership plans, and flexible benefits programs including modular, core-plus, and flexible spending plans. The trends are aimed at attracting and retaining employees through customized compensation packages.
Memorándum de Entendimiento (MoU) entre Codelco y SQM
New Trends in Compensation Management: Flexible Benefits, Variable Pay
1. New Trends in Compensation
Management
Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt)
Professor
Al-Qurmoshi Institute of Business Management
Hyderabad
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
3. New Trends in Compensation
Management (Contd.)
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
4. New Trends in Compensation
Management (Contd.)
Work-life Balance
Pay Transperancy
Broad banding
Variable Pay (Incentive Pay)
Flexible Benefits
6. Pay Transperancy
Employees want transparency in pay system.
Now a days some organisations are using
transparent pay system.
Pay transparency influences employees in
• Fostering trust in management
• Increasing employee engagement
• Encouraging discretionary efforts
• Reducing turnover
• Creating competitive advantage
7. Broad banding
Consolidating salary grades and ranges into just a
few wide levels or “bands,” each of which contains a
relatively wide range of jobs and salary levels.
Wide bands provide for more flexibility in assigning
workers to different job grades.
Lack of permanence in job responsibilities can be
unsettling to new employees.
8. Variable Pay (Incentive Pay)
Tying pay to some measure of
individual, group, or
organizational performance.
Piecework incentive
Pay-for-performance
Pay-for –person
Merit pay
Bonuses
Sales incentives
Profit sharing
Gain sharing
Employee Stock Ownership
Plan
9. Employee Stock Ownership Plan
Employee Stock Ownership Plan (ESOP) is an employee
benefit plan.
The scheme provides employees the ownership of stocks in
the company.
Employers have the benefit to use the ESOPs as a tool to
fetch loans from a financial institute.
It also provides for tax benefits to the employers.
Company makes annual contributions in a special trust set
up for ESOPs.
10. Flexible Benefits
Flexible benefits allow employees to pick benefits
that meet their needs. The idea is to allow each
employee to choose a benefit package that is
individually tailored to his or her own needs and
situation.
11. Flexible Benefits
The three most popular type of benefit
plans are:
- modular plans,
- core-plus options and
- flexible spending accounts.
12. Modular Plans
Modular plans are pre-designed packages of benefits,
with each module put together to meet the needs of a
specific group of employees.
So a module designed for single employees with no
dependents might include only essential benefits.
Another, designed for single parents, might have
additional life insurance, disability insurance, and
expanded health coverage.
13. Core-plus Plans
Core-plus plans consist of a core of essential benefits
and a menu-like selection of other benefits options
from which employees can select and add to the core.
Typically, each employee is given “benefit credits,”
which allow the “purchase” of additional benefits that
uniquely meet his or her needs.
14. Flexible Spending Plans
Flexible spending plans allow employees to set aside
up to the amount offered in the plan to pay for
particular services.
It’s a convenient way, for example, for employees to
pay for health-care and dental premiums.
Flexible spending accounts can increase employee
take-home pay because employees don’t have to pay
taxes on the amount they spend out of these
accounts.
15. Benefits and Perks at Google
Physical Fitness
Healthy Eats - a chef makes custom cook every single day
Rejuvenating
Dry-cleaning and alterations
Car wash
Unrestricted dress code
DVD rental
Bike repairs
Haircuts
Theatres
House Rent allowance
Transport and fuel for a specific project, amount returned
after service
Hinweis der Redaktion
Flextime- allows employees to have the benefits of adjusting the time they come to work. Businesses can offer flexible services to customers, supervisors are forced to communicate more effectively. Compressed workweek- employees have the opportunity to work 4 days a week with longer work hours, usually 10hours per day. In return they are able to take one day off a week with out using vacation. Job sharing- two part-time people split the work schedule of 40 hours a week. Sometimes the days work over lap to allow for successful hand-offs and communication. Trust is very important in this role Flexible compensation - allows employees the ability to select what components that have for their compensation package. This approach with employees individual needs and preferences Telecommuting- allows employees the ability to work from home if they are able to maintain their performance. Not every job can be performed remotely. For example, Customer Service Representative. Most telecommuters are information workers. For example, programmer or recruiter. Part-time work - the employee who are students or parents with young children may need part-time schedules. The retail industry is known for having its workforce be part-time. Modified retirement- permits older workers to work fewer hours for a certain time period while maintaining their eligibility to retire