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COMPENSATION AND BENEFITS - Coggle Diagram
COMPENSATION AND BENEFITS
(1)Definition
Compensation
Includes all forms of pay and reward received by the employees for the performance of their jobs
Benefit
Other forms of compensation which not including wages are known as benefits
Wages
Basic payment
Incentive
Payment is tied to the achievement of specific objectives that have been pre-determined and communicated to the employees that are on the plan
(2)Importance of wage system
Improve standard of living and status
(important to employees)
Cost of production(Important to employers
Competitiveness of Malaysian businesses( Import to society)
(3)Compensation package
Wages
Benefits
Incentives
(4)Goals of remuneration systems
Employer's goals
To maximize profits
To have an attractive package
To retain the best employees
To have system simple to administer
Employee's Goals
To maximize income
To have stable income
(5)Wage systems
Time related system
Wages are paid for a set period of work on an hourly, weekly or monthly basis
Piece -work systems
Worker are paid according to the number of units produced in a given time
(6)Factors Affecting levels of pay
External Factors
Legislation and government policy
Unions
Selection and policy
Employment conditions
Company profitability
Internal factors
Seniority
Increase cost of living
Performance
Degree of skill
(7) Why provide benefits
Certain benefits are statutorily required
Help attract staff to join the organization
Help retain existing employees
Increase morale of employees
(8)Statutory benefits
Maternity leave
Time -off paymets
Public holidays
Annual leave
Sick leave
Employee provident fund
Employee social security organization
(10)Rewards
Financial rewards
Wage increments
Bonuses
Profit sharing schemes
Commissions
Non financial rewards
Performance awards
Letters of appreciation
Long service awards
Sponsorship to attend conferences
(9)Non -statutory benefits
Time-off payment
Health care
Insurance
Financial service
Retirements benefits
Educational assistance
Subsidies and services