COMPENSATION

Compensation
Wage & Salary
Definition : Wages represent the hourly rates of pay and salary refers to the monthly rates of pay.

Incentives
Also called payment of results , incentives are paid in addition to wages & salaries. Incentives depend upon productivity, sales, profit or cost reduction efforts.

Compensation
Fringe Benefits
These includes employee benefits such as Provident fund, Gratuity, Medical Care, Hopitalization, Accident Relief, Health & Group Insurance, Canteen, Uniform, Recreation and the like.

Compensation
Perquisites
These are allowed to executives and includes Company Car, Club Membership, Paid Holiday, Furnished house, Stock Option Schemes and the like. Perquisites are offered to retain competent executives

Questions?
Do you think people work only for money? Attractive remuneration helps an organization to attract & retain & motivate competent people? Retaining Competent individuals for a long time, is difficult than attracting fresh talent? Employees get motivated to perform better when their past performance is rewarded adequately.

Factors Affecting Employee Remuneration

Cost of Living Demand & Supply in Labour Market Labour Laws / Income Tax Regulation Economy

Challenges for Remuneration

Pay reviews Pay Secrecy Comparable worth Below Market v/s Above Market Remuneration Monetary v/s Non - monetary

Thank You