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Compensation & Benefits (Why are they important? (One of the biggest…

- - - - Additional compensation paid to employee
        based on employee’s performance and/or
        company performance
    - - Shares of the company (often awarded to the employees at a discounted price), where the employees are expected to make money out of them by the appreciation of the stock price and the growth of the company.
    - - Benefits such as medical facilities,
        insurance policies, company owned
        car or flat etc
    - - Basic salary / wage
- - - - Basic compensation
        (basic salaries / wages)
      - Performance related compensation
        
        reflect some performance measure and that can be individual productivity, work group or departmental productivity
        
        performance bonuses based on corporate profitability
      - Piece-rate compensation plan
        
        no basic salary
        
        only paid for what they have produced
- - - - Existing headcount:
        
        Exceed entitlement
        
        Unauthorised payment
        
        Overpayment
      - Non existence headcount
        (fictitious payment)
        
        incl. payment made for resigned staff
  - - - causes and effects
        
        Poor communication can result in employees or dependents misunderstanding which benefits they are eligible for, deadlines for eligibility, or extreme disappointment when employee expectations are not met…results in lower morale, higher employee turnover, and a potential lawsuit (legal expense and damages)
        
        Program Design issues can be inadvertent or intentional; inadvertently excluding eligibility for an employee or group of employees or intentionally excluding eligibility when regulations or legal statutes are misunderstood or ignored…results in a very costly lawsuit (legal expense and damages) as well as potential regulatory fines.
    - - Training & Competency failures typically result from a poor or missing program that doesn’t set your employees up for success. Causes here are usually apathy or unawareness of training deficiencies. The results are across the board from liability lawsuits brought by customers or outside third-parties, a hacking event, an employment liability claim, repeated workers comp injuries, and even all the awful effects of an employee death.
  - - - Keeping compensation and benefits packages as simple as possible
      - Build reward programs that link performance to pay
      - Make sure employment contacts for employees and contractors are up to date and legally sound
      - Avoid any discrimination – ensure all rewards are awarded based on performance and contribution to the business’ goals
    - - Provide opportunities for your employees to grow through training and skills development programs
      - Encourage learning and organise for employees to set aside time weekly to learn
      - Incorporate skill development into the regular performance appraisal process
      - Hold managers accountable for outcomes