Rewards & Benefits

Rewards & benefit

Financial Compensation

Rewards VS Benefits

Non Financial Compensation

Direct (Rewards)

Indirect (Benefits)

Individual

Team-Based (Group)

Definition: Direct financial compensation can be viewed as incentives which is performance-based.

Company-wide

Merit Pay Plan

Piecework Plan

Commission

Employee who shows merit are rewarded a sum of $ added to their base salary. This is due to employee deserving performance. High performer will get paid more merit pay.

Employees are guaranteed a minimum hourly rate for meeting some pre-established standard output

Differential piece rate plan

Straight piece work plan

work on commission basis. Added to their lower base wage, an amt representing % of sales price.

2/more employees can be paid for their combined performance

Profit Sharing

Gain Sharing

Rewards

Benefits

Distribution of predetermined % of company's profit to the employees

An incentive payment based on improved company performance.

Scanlon Plan

Improshare

Mathematical cal to determine staff bonus

Employees' effort to reduce labour cost thro suggestion & ideas

2 rates (up to standard & exceed standard)

employee pay for hourly rate

Monetary value (e.g. commission, bonus, wage, salary, incentive)

Non-monetary value

Performance-based

Membership-based

Attract & retains talented employees

Motivate & improve welfare of employees

For rewards to be effective it must be PERFORMANCE-BASED, high performers will receive higher pay & rewards than low-average performers, la will be discouraged (bulk up or quit job)

Problem: view it as cost of living expenses & expected to be given regularly & frequently but what if company bad state/ employee not up to expectations

Adv: best way to motivate employee for high performance but may result in interpersonal conflict

Legally-required/ compulsory

Voluntary/ discretionary Benefits

Definition: Employee benefits are membership-based to attract & keep employees. Are not related to employee productivity, thus not a direct motivator for improved performance

The Central Provident Fund Act (CPF)

(WICA) Work & Injury compensation act

(WHSA) Workplace health & safety act

The employment act

Healthcare

Life insurance

Payment for time not worked

Premium Pay

Not legally required

Employee Services

mandated by rule of law of Singapore

Retirement benefits

Add. payment for risky & dangerous job

Benefits include company subsided food payment, house loans, etc

Job Environment

Work Flexibility

The Job Content

Definition: Consists of the satisfaction employees received from the job itself/ psychological and/ psychical job environment in which the employees work in.

e.g. meaningful, interesting job

Good working colleagues, comfortable working condition, basic sound policies, competent supervision, etc

Employees can have greater control over their jobs & job environment (e.g. flexitime, compressed work weeks, telecommuting, job sharing)