Establishing Rewards, Pay Plans, and Employee Benefits By Daniel Damaris Novarianto S.

Rewards What is the rewards?

Rewards (cont.)

Job Evaluation Methods 1 Ordering Method or Job Ranking 2 Classification Method or Grade Level 3 Point Method

The Example of Job Ranking

The Example of Classification Method

The Example of Point Method

The Example of Point Method (cont.)

Establishing the Pay Structure Compensation Surveys Wages Curves Or Wage Structure

The Example of Waged Curves from Internal Based

The Example of Waged Curves from External Based

The Example of Plotting both External and Internal Wage Curves

Establishing the Rate Ranges of Wage Curves

The Example of Wage Structure

Determining the Wage Structure from External Factor Geographic Factors Labor Supply Competition of Wages Cost of Living Collective Bargaining Communicating with Employee

Incentive Compensation Plans Individual Incentives Group Incentives Organization-Wide Incentives Scanlon Plan IMPROSHARE

Paying for Performance 2 Basis Competency Based Compensation Broad Branding

Executive Compensation Program Salaries of Top Management Supplemental Financial Compensation Supplemental Non-Financial Compensation: Perquisities/Perks: the payment of life insurance premiums, club memberships, company automobiles, liberal expense accounts, supplemental disability insurance, supplemental retirement accounts, postretirement consulting contracts, and personal financial, tax, and legal counseling Golden Parachute

The International Compensation Issue 1 Base Pay 2 Differentials 3 Incentives 4 Assistance Program

Relationship Between Stress and Job Performance

The Stress Model

Employee Benefits

Traditional Health Insurance: Hospitalization: pays for hospital stays with limits, usually 120 days Medical/Surgical: pays for services of doctors, procedures, nursing care, drugs, and hospital services such as anesthesia, tests, lab work, etc. Major Medical: pays for major illnesses and their associated expenses such as oxygen, home care, and extended hospital stays over 120 days

Health Insurance (cont.) Health Maintenance Organizations (HMOs) Provides comprehensive health services for a flat fee Preferred Provider Organizations (PPOs) Organization that requires using specific physicians and health-care facilities to contain the rising costs of health care

Health Insurance (cont.) Point-of-Service (POS) Health care plan that includes primary care physicians but allows greater flexibility for using services out of the network Consumer Driven Health Plans (CDHP) Combines a health plan with a high deductible with a health savings account that the insured uses to pay for deductibles and medical care

Health Insurance (cont.) Consolidated Omnibus Budget Reconciliation Act (COBRA) Provides for continued employee benefits up to three years after an employee leaves a job

Thank You !