Rewards & Benefits
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)