HRM Compensation Management

Slides:



Advertisements
Similar presentations
Compensation. The Importance of Compensation Impacts an employer’s ability to attract and retain employees. Ensure optimal levels of employee performance.
Advertisements

Compensation Compensation is the reward that individuals receive in exchange for performing tasks A major cost of doing business The chief reason people.
Compensation and Benefits OBHR E-100 November 6, 2007.
COMPENSATION.
COMPENSATION Part I.
Motivating Employees through Compensation
Reward Systems 1 1.
PAD214 INTRODUCTION TO PUBLIC PERSONNEL ADMINISTRATION
Attracting and Retaining the Best Employees
Cash, Bonuses, Insurance,
HUMAN RESOURCE What is reward …ing? Freely Inspired from Bratton J., Gold J., Human Resource Management, Theory and Practice, Palgrave, 2003
Total Strategic Compensation Human Resource Management.
Compensating Employees Definition Objective Bases Types Determining Reward Job Evaluation Compensation Structure.
Compensation & Benefits – Basic Compensation & Employee Benefits CHAPTER 9 HRM.
The Nature of Staffing HR-302 CLASS -1. Outline Nature of Staffing  The Big Picture  Definition of Staffing  Implications of Definition Staffing Models.
Chapter 5 Compensation & Benefits
Lecture 11: Compensation. Strategic Issues and Compensation  Why do dome employers pay more than other employers?  Why are different jobs within the.
Human Resource Staffing and Performance Management Introduction
Strategic Human resource Management compensation.
Prentice Hall, Inc. © A Human Resource Management Approach STRATEGIC COMPENSATION Prepared by David Oakes Chapter 1 Strategic Compensation: A.
© 2008 by Prentice Hall9-1 Human Resource Management Chapter 9 DIRECT FINANCIAL COMPENSATION.
Compensation and Benefits. Meaning of Compensation Compensation means what the employees receive in exchange for their work. It is the monetary plus non-
Compensation: A Component of Human Resource Systems
Performance Management and Compensation MANA 4328 Dr. Jeanne Michalski
COMPENSATION “Compensation is all the income in the form of money, goods directly or indirectly received by employees as a reward for services rendered.
EMPLOYEE BENEFIT PACKAGE. HOW DO YOU DECIDE When you are presented with more than one job offer, how do you make your final decision? Consider this information.
2012 COMPENSATION STUDY RESULTS July 18, 2012 Board of Aldermen Worksession.
1– 1 MGT-351 Human Resource Management Chapter-11 MGT-351 Human Resource Management Chapter-11 Establishing Strategic Pay Plans.
COMPENSATION.
Chapter Sixteen Employee Benefits.
INTRODUCTION TO BUSINESS
Establishing Strategic Pay Plan Chapter- 11
COMPENSATING SALES PEOPLE
ESTABLISHING STRATEGIC PAY PLANS
CHAPTER 11 ESTABLISHING A PAY STRUCTURE
Chapter 13 Managing compensation
Compensation and Benefits
COMPENSATING SALES PEOPLE
ESTABLISHING STRATEGIC PAY PLANS
Copyright ©2016 Cengage Learning. All Rights Reserved
Kulwadee abhicharttibutra
Examples of Employee Compensation Plans
Incentives and Compensation
MANAGING HUMAN RESOURCES
Compensation: Creating an Equitable and Market-driven Pay System
9 6 Total Rewards C H A P T E R Training Employees
Compensation & Rewards
CHAPTER 11: COMPENSATION
Human Resource Management
Extending the System Chapter 14 Compensation of Special Groups
Employee Contributions: Determining Individual Pay
BP Amoco Finland Team 10: Compensation
Finances and Career Planning
Performance Management and Compensation
Job Evaluation Salary Administration Program
CHAPTER 11 COMPENSATION PowerPoint Presentation by Charlie Cook
Performance Management and Compensation
Chapter 9 Compensation and Benefits
Human Resource Management
Introduction to HRM What is it….?.
Employee Benefit Package
HUMAN RESOURCE MANAGEMENT
Finances and Career Planning
Compensation Programs
Finances and Career Planning
Performance Management and Compensation
Copyright ©2012 by Cengage Learning. All rights reserved.9- 1 Chapter 9 Compensation and Benefits Prepared by Joseph Mosca Monmouth University.
LESSON 8 COMPENSATION MANAGEMENT
Compensation 101 A Primer for HR Professionals
Managing Compensation
Presentation transcript:

HRM Compensation Management www.epowerpoint.com www.epowerpoint.com

Main Contents Introduction to Compensation Point factor-based (internal equity focus) Performance reward www.epowerpoint.com

Introduction to Compensation Construction of total compensation Decisions related to compensation management Principles of designing compensation system Strategic compensation management www.epowerpoint.com

Please think about it: Can we treat MONEY as a motivation factor? www.epowerpoint.com

Basic Payment Variable Payment Direct Compensation Total Compensation Direct Compensation Basic Payment Basic salary, wage for seniority, wage attached to a post Variable Payment Short-time variable payment Long-time variable payment Indirect Compensation Social Insurance; Holiday with payment; other welfare www.epowerpoint.com

Decisions related to compensation management How to decide the basic payment How to decide the average level of compensation How to decide the compensation structure How to decide the compensation regulations www.epowerpoint.com

Principles of designing compensation system Target of company 1 Direction Requirement of financial ability 1 Premise Outside equity Internal equity 2 Equities Compensation level matches positions Performance salary matches performance result Total amount of compensation matches company profits 3 Matches www.epowerpoint.com

“Monkeys Demand Equal Pay” A study shows brown capuchin monkeys refused to play along when they saw another monkey get a better payoff for performing the same work. The monkeys were trained to trade a granite token for a piece of cumber. When the reward was the same for both monkeys, they took the cucumber 95 percent of the time. But it was a different story when one monkey was given something better -- namely, a grape. Then, the other monkey often pitched a fit -- either throwing the token, refusing to eat the cucumber or giving it to the other monkey. www.epowerpoint.com

Expectancy Theory Motivation = E X I X V Expectancy: The connection between behavior and the outcome Instrumentality: The connection between outcome and a reward Valence: Is the reward something that the individual values? www.epowerpoint.com

Strategic compensation management www.epowerpoint.com

Operation Strategy and Compensation Strategy Innovation Strategy Compensation System Operation Strategy Product leader in the market Customer concentration and product innovation Rewards in innovation of products and manufacturing methods www.epowerpoint.com

Operation Strategy and Compensation Strategy Cost leadership Strategy Operation Strategy Compensation System Cost effectiveness way of problem solving Focus on cost comparisons with competitors -- neither low nor high Increase the proportion of variable compensation www.epowerpoint.com

Operation Strategy and Compensation Strategy Customer Intimacy Strategy Operation Strategy Compensation system Customer service way of problem solving Customer satisfaction as the rewards basis Who evaluate the employee’s service? www.epowerpoint.com

Point factor-based (internal equity focus) www.epowerpoint.com

Point factor-based 3 parts: Compensation factors:Which characteristics of one position can contribute to the corporation? How to measure compensation factors; Weight of each compensation factor. www.epowerpoint.com

Knowledge & Technology Compensation factor Factor Points Percentage % Work responsibility 400 40 Knowledge & Technology 300 30 Effort Degree 200 20 Work Environment 100 10 www.epowerpoint.com

Responsibility Factors Sub-factors Grades Weight Total Responsibility of Risk Control 5 80 400 Responsibility of Const Control 6 40 Responsibility of Direction and Supervision 7 Responsibility of Internal Coordination 30 Responsibility of External Coordination 4 Responsibility of work results Responsibility of personnel arrangement Law responsibility 70 Level of decisions www.epowerpoint.com

Knowledge & Technology Factors Sub-factors Grades Weight Total Knowledge & Technology Requirement of Minimum Educational Background 5 30 300 Diversity of knowledge 4 Adaption period 20 Work complexity 40 Work experience 7 Work flexibility Writing ability 25 Mathematics knowledge Synthesis ability 50 www.epowerpoint.com

Minimum requirement of educational background Definition of factors: Minimum academic requirements of smoothly performing job duties. 1、High school diploma 5 2、2 or 3-year college diploma 10 3、Bachelor’s degree 15 4、Master’s degree 20 5、PhD 30 www.epowerpoint.com

Occupation disease Definition of factors: Physical disease due to work. 1、No possibility of occupational disease. 2、Slightly damage some parts of body. 5 3、Moderately damage some parts of body. 10 4、Seriously damage some parts of body. 15 www.epowerpoint.com

Knowledge and Technique Factors Segmentation factors Weight Job Title Responsibility Responsibility of Risk Control 80 Responsibility of Cost Control 40 Responsibility of Direction and Supervision Responsibility of Internal Cooperation 30 …… Knowledge and Technique Requirement of Minimum Educational Background Knowledge Diversity Job complexity Work Experience Effort Level Work Pressure Degree of Concentration Work Environment Occupational Disease 15 Characteristics of work time Total www.epowerpoint.com

Possibility of Negatively influence health 4、work environment and definitions 4-1 Work time flexibility 7 Level 1 Hardly work overtime. 14 Level 2 Need to come early or leave late in order to complete the tasks occasionally. 21 Level 3 Need to come early or leave late in order to complete the tasks quite often, but regularly. 28 Level 4 Need to come early or leave late in order to complete the tasks quite often, not regularly. 4-2 …… ……. 4-3 Possibility of Negatively influence health Very low possibility of negative health influence. Relatively low possibility of negative health influence. Relatively high possibility of negative health influence. High possibility of negative health influence. 35 Level 5 Very high possibility of negative health influence. 4-4 Work danger No possibility of causing danger to the body. Possibility of slightly danger if lack of attention. Possibility of moderate danger if lack of attention. Possibility of serious danger if lack of attentin www.epowerpoint.com

Design of Salary Structure www.epowerpoint.com

Manager of Retired Affaires 210 3 Manager of Administrative Affairs Position Point Value 1 Cashier 140 2 Manager of Retired Affaires 210 3 Manager of Administrative Affairs 260 4 Accountant of Labor Union 335 5 Secretary of CEO 345 6 Director of Administrative Affairs 355 7 Accounting Specialist 8 Recruitment Specialist 405 9 Manager of Financial Department 425 10 Project Manager 470 11 General Manager’s Office Director 545 12 Senior Manager of Financial Department 550 13 Senior Manager of Marketing Department 565 www.epowerpoint.com

以恒定的绝对极差方式来确定 Points Absolute Level-difference of Max-Min Ratio of Differences of Max-Min Minimum Maximum 1 137 175 2 176 214 +39 22% 3 215 253 18% 4 254 292 15% 5 293 331 13% 6 332 370 12% 7 371 409 10% 8 410 448 9% 9 449 487 8% 10 488 526 11 527 565 7% 以恒定的绝对极差方式来确定 www.epowerpoint.com

职位点数等级划分及其点数变动区间 Point Range 1 137-175 2 176-214 3 215-253 4 254-292 5 293-331 6 332-370 7 371-409 8 410-448 9 449-487 10 488-526 11 527 or Above 职位点数等级划分及其点数变动区间 www.epowerpoint.com

Manager of Retired Affaires 210 1800 3 - 4 Levels Positions Points Market Salary Level 1 Cashier 140 1530 2 Manager of Retired Affaires 210 1800 3 - 4 Manager of Administrative Affairs 260 2030 5 Accountant of Labor Union 335 2300 6 Secretary of CEO 345 Director of Administrative Affairs 355 2430 Accounting Specialist 2560 7 Recruitment Specialist 405 2920 8 Manager of Financial Department 425 3160 9 Project Manager 470 3600 10 11 General Manager’s Office Director 545 4900 Senior Manager of Financial Department 550 5300 Senior Manager of Marketing Department 565 5700 www.epowerpoint.com

Y=-606.412+9.761x www.epowerpoint.com

Y=878.238*e^(0.003*x) [Index Model] www.epowerpoint.com

Mid-value of Salary Range of Linear Model Levels Minimum Maximum Mid-value Mid-value of Salary Range of Linear Model Mid-value of Salary Range of Index Model 1 137 175 156 916 1402 2 176 214 195 1297 1576 3 215 253 234 1678 1772 4 254 292 273 2058 1992 5 293 331 312 2439 2239 6 332 370 351 2820 2517 7 371 409 390 3200 2829 8 410 448 429 3581 3180 9 449 487 468 3962 3575 10 488 526 507 4342 4019 11 527 565 546 4723 4518 www.epowerpoint.com

Mid-value of Salary Range of Index Model Levels Position Point Market Salary Level Mid-value of Salary Range of Index Model Comparison(%)(Mid-value/Market Salary Level) 1 Cashier 140 1530 1402 92% 2 Manager of Retired Affaires 210 1800 1576 88% 3 - 1772 4 Manager of Administrative Affairs 260 2030 1992 98% 5 Accountant of Labor Union 335 2300 2239 97% 6 Secretary of CEO 345 2517 109% Director of Administrative Affairs 355 2430 104% Accounting Specialist 2560 7 Recruitment Specialist 405 2920 2829 8 Manager of Financial Department 425 3160 3180 101% 9 Project Manager 470 3600 3575 99% 10 4019 11 General Manager’s Office Director 545 4900 4518 85% Senior Manager of Financial Department 550 5300 Senior Manager of Marketing Department 565 5700 79% www.epowerpoint.com

Level Difference of Median Minimum=Mid-value/[100%+(Level Width/2)] Maximum=Minimum+(Level Width*Minimum) Level Width Mid-value Level Difference of Median Minimum Maximum 1 20% 1400 1273 1527 2 30% 1575 12.50% 1580 12.86% 1374 1786 3 1772 1780 12.66% 1548 2012 4 1993 2000 12.36% 1739 2261 5 40% 2252 13.00% 2260 1883 2637 6 2544 2550 12.83% 2125 2975 7 2874 2880 12.94% 2400 3360 8 3247 3250 12.85% 2708 3792 9 60% 3734 15.00% 3740 15.08% 2877 4603 10 4294 4300 14.97% 3308 5292 11 4938 5000 16.28% 3846 6154 www.epowerpoint.com

Salary Grades Median Minimum Maximum 1 1400 1273 1527 127 2 1580 1374 1786 206 3 1780 1548 2012 232 4 2000 1739 2261 261 5 2260 1883 2637 377 6 2550 2125 2975 425 7 2880 2400 3360 480 8 3250 2708 3792 542 9 3740 2877 4603 863 10 4300 3308 5292 992 11 5000 3846 6154 1154 www.epowerpoint.com

Salary Grades www.epowerpoint.com

# 岗位 东单 地安门 万柳 文慧桥 总部 1 服务员 311 317 255 会计 285 2 收银员 336 347 289 357 成本 277 3 洗碗 282 293 203 271 材料 4 保洁 279 209 284 财务经理 501 5 水吧 307 350 273 346 采购 376 6 传菜 305 235 保管 261 8 打荷 276 213 280 采购经理 523 9 砧板 394 381 325 财务总监 679 10 上什 372 358 295 加工 248 11 炒锅 422 416 370 配送 239 12 冷荤 343 329 290 培训督导 396 13 库管 281 320 274 新品研发 447 14 电工 319 348 308 品控研发经理 558 15 值班 190 200 188 人事经理 500 16 服务领班 368 365 318 培训经理 532 17 服务主管 417 414 人力总监 685 18 收银领班 364 374 信息系统 19 洗碗领班 366 数据分析 294 20 保洁领班 345 283 会员 227 21 水吧领班 355 362 338 广告 22 传菜领班 349 353 321 市场 312 23 打荷领班 330 市场营销 448 24 砧板领班 439 430 380 25 上什领班 391 332 26 炒锅领班 486 480 434 27 冷荤领班 400 341 28 厨房主管 483 470 29 副经理 478 30 副厨师长 617 619 656 31 前厅经理 697 719 537 32 厨师长 727 742 651 www.epowerpoint.com

# 职级 分值 档位 1 2 3 4 5 1级 101-200 101-120 121-140 141-160 161-180 181-200 岗位工资 2级 201-300 201-120 221-140 241-160 261-180 281-300 3级 301-400 301-320 321-340 341-160 361-180 381-400 6 7 4级 401-500 401-420 421-440 441-460 461-480 481-500 8 9 5级 501-600 501-520 521-540 541-560 561-580 581-600 10 11 6级 601-700 601-620 621-640 641-160 661-680 681-700 12 13 7级 701-800 701-720 721-140 741-160 761-780 781-800 14 15 8级 801-900 801-820 821-840 841-860 861-880 881-900 16 17 9级 901-1000 901-920 921-940 941-960 961-980 981-1000 18 www.epowerpoint.com

岗位工资 等级 上限 下限 中线 上位 下位 基本工资 工资上限 工资下限 1 840 140 490 350 1160 2000 1300 2 1840 340 1090 750 3000 1500 3 3340 1340 2340 1000 4500 2500 4 4840 2840 3840 6000 4000 5 7840 6340 9000 6 10840 6840 8840 12000 8000 7 13840 11340 15000 10000 8 17840 11840 14840 19000 13000 9 26840 15840 21340 5500 28000 17000 www.epowerpoint.com

www.epowerpoint.com

Performance Awards www.epowerpoint.com

Short-time performance Awards Short time performance Rewards Merit pay One-time Bonus Special Performance Recognizing Plans www.epowerpoint.com

Short-time Performance Rewards Plan Merit pay is a compensation system whereby base pay increases are determined by individual performance (as opposed to across the board increases). 2 types of merit pay According to performance base Combination of performance and relative compensation level www.epowerpoint.com

Simple Merit Pay Table Please think about it, is there any problem? Significantly above expectations Above expectations Qualified Below expectations Significantly below expectations Performance Evaluation Grade A B C D E Percentage of merit pay’s increase 7% 5% 3% 1% Please think about it, is there any problem? www.epowerpoint.com

Simple Merit Pay Table Employee Current Base Payment Percentage of merit pay Absolute merit payment A $2,000 2% 40 B $3,000 60 C $4,000 80 www.epowerpoint.com

According to the Mid-value of compensation range Employee Current Base Payment Percentage of merit pay Absolute merit payment Actual percentage of merit pay A 2,000 2% 60 3% B 3,000 C 4,000 1.5% www.epowerpoint.com

Comparing to market compensation level Merit Pay Table Based on Performance and Outside Relative Compensation Level Comparing to market compensation level Performance Grade A B C D E Degree of Merit Pay >15% 6% 4% 3% 1% 0% 5%<X≤15% 8% 2% 【-5%,5%】 10% 5% -15%≤X<-5% 14% <-15% 18% 15% www.epowerpoint.com

Relative internal compensation level Merit Pay Table Based on Performance and Internal Relative Compensation Level Relative internal compensation level Performance Grade A B C D E Degree of Merit Pay 4th quartile 5% 3% 1% 0% 3rd quartile 7% 2nd quartile 9% 6% 2% 1st quartile 12% 10% 8% 4% www.epowerpoint.com

Welfare & Motivation www.epowerpoint.com

Employee Welfare Employee Welfare Statutory Insurance Corporation Complementary Insurance Statutory Welfare Employee Service Welfare www.epowerpoint.com

work-related injury insurance Statutory Insurance Statutory Insurance Pension Employment Insurance Medical Insurance work-related injury insurance www.epowerpoint.com

Corporation Complementary Insurance Complimentary Pension Plan Group Life Insurance Health Care Insurance www.epowerpoint.com

Employee Service Welfare EAP Consulting Service Child Care Elderly Care Plan Food Service www.epowerpoint.com

Flexible Welfare Service Plan Core + Additional welfare service plan Welfare points Sell welfare points according to the previous performance Flexible Expenditure account Deducting some amount from pre-tax income Welfare Menu Combination of different welfare set www.epowerpoint.com