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

2. Rewards
What is the rewards?

3. Rewards (cont.)

4. Job Evaluation Methods1
Ordering Method or Job Ranking 2
Classification Method or Grade Level 3
Point Method

5. The Example of Job Ranking

6. The Example of Classification Method

7. The Example of Point Method

8. The Example of Point Method (cont.)

9. Establishing the Pay Structure
Compensation
Surveys
Wages
Curves
Or Wage
Structure

10. The Example of Waged Curves from Internal Based

11. The Example of Waged Curves from External Based

12. The Example of Plotting both External and Internal Wage Curves

13. Establishing the Rate Ranges of Wage Curves

14. The Example of Wage Structure

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

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

17. Paying for Performance
2 Basis
Competency Based Compensation
Broad Branding

18. 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

19. The International Compensation Issue1
Base Pay 2
Differentials 3
Incentives 4
Assistance Program

20. Relationship Between Stress and Job Performance

21. The Stress Model

22. Employee Benefits

23. 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

24. 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

25. 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

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

27. Thank You !