compensation and benefit
Chapter 1
COMPENSATION & BENEFITS
Books for reference
• George T Milkovich, Jerry M Newman, C S
Venkataratnam. Compensaton, Tata McGraw - Hill
Educaton, 9th editon, 2009
• Dewakar Goel. Performance Appraisal And
Compensaton Management: A Modern Approach,
PHI, 2nd editon, 2012
• Compensaton & reward management by B.D singh.
Module coverage
• Module 1: Compensaton – an overview (
5
hours) • Objectve of compensaton - External influences on compensaton - Internal influences on compensaton - Compensaton and motvaton - Compensaton decisions
Meaning of compensaton
• It does not mean the same to everyone.
• For some it’s a return in an exchange between their employer and themselves
• For some it’s a measure of justce
• For some its an enttlement, or Reward.
• For some its their return on their investments and contributons
Meaning of compensaton..
• In English Compensaton means something that counterbalances, offsets or makes up for something else.
• We can conclude – Compensaton refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relatonship.
What is compensaton ?
• "Compensation includes direct cash payments, indirect payments in the form of employee benefits and incentives to motivate employees to strive for higher levels of productivity” Two types of compensaton
• Direct compensaton : is the financial remuneraton received by the employee, in the form of cash. This may in general include elements like Basic, DA, overtme, shift allowance, commissions, incentves, bonus, profit sharing etc.
• Indirect pay : supplements direct pay , consists of PF, pension, canteen services, mediclaim, paid holidays , sick leave and other benefits.
Remuneraton & Rewards
Non-Financial
Financial
DIRECT
(cash)
• Salaries
• Incentves
• Bonuses
INDIRECT
(benefits)
• Insurance
• Holidays
• Medical and health • Child care
• Employee assistance JOB
•
COMPENSATION & BENEFITS
Books for reference
• George T Milkovich, Jerry M Newman, C S
Venkataratnam. Compensaton, Tata McGraw - Hill
Educaton, 9th editon, 2009
• Dewakar Goel. Performance Appraisal And
Compensaton Management: A Modern Approach,
PHI, 2nd editon, 2012
• Compensaton & reward management by B.D singh.
Module coverage
• Module 1: Compensaton – an overview (
5
hours) • Objectve of compensaton - External influences on compensaton - Internal influences on compensaton - Compensaton and motvaton - Compensaton decisions
Meaning of compensaton
• It does not mean the same to everyone.
• For some it’s a return in an exchange between their employer and themselves
• For some it’s a measure of justce
• For some its an enttlement, or Reward.
• For some its their return on their investments and contributons
Meaning of compensaton..
• In English Compensaton means something that counterbalances, offsets or makes up for something else.
• We can conclude – Compensaton refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relatonship.
What is compensaton ?
• "Compensation includes direct cash payments, indirect payments in the form of employee benefits and incentives to motivate employees to strive for higher levels of productivity” Two types of compensaton
• Direct compensaton : is the financial remuneraton received by the employee, in the form of cash. This may in general include elements like Basic, DA, overtme, shift allowance, commissions, incentves, bonus, profit sharing etc.
• Indirect pay : supplements direct pay , consists of PF, pension, canteen services, mediclaim, paid holidays , sick leave and other benefits.
Remuneraton & Rewards
Non-Financial
Financial
DIRECT
(cash)
• Salaries
• Incentves
• Bonuses
INDIRECT
(benefits)
• Insurance
• Holidays
• Medical and health • Child care
• Employee assistance JOB
•