COMPENSATION & REWARD STRATEGY

By:Deepak Angrish Dheeraj Kokil Manisha Rahul Tejyan Prabhat Tomar

COMPENSATION AND REWARDSNEW DEVELOPMENTS

Competency-based Pay and Rewards Progammes

Steps in designing Competency-based Pay system:Identify competencies and distinguish between proficiency levels Assess the competency level of job-holders Create pay bands Develop a pay delivery system

1.

2.

3.
4.

Team-based Pay and Rewards

Advantages

Disadvantages

Trends in Top-Level Executive Compensation

Components of Executive Compensation:

Salary Short-term incentives Long-term incentives Benefits Perquisites

Business Strategy and Compensation

Dimensions of Compensation
1.

Bases for Determining Pay Levels Job or Skill Performance or Seniority Individual performance or Group performance Short-term vs. Long-term orientation Risk Aversion or Risk Taking Compensation Level or Market Internal Equity or External Equity Hierarchy or Egalitarianism Fixed Pay or Incentives Quantitative or Qualitative Measures of Performance

Contd.
2.

Design of Compensation System Bonuses or Deferred compensation Intrinsic Rewards or Extrinsic Rewards Administrative Framework Centralized pay administration vs. Decentralized Open pay or Secret pay Participation or Non-participation of employees in Pay Decisions Bureaucratic pay or Flexible pay policies

3.

Strategic Compensation Patterns

Mechanistic Compensation Strategies

Organic Compensation Strategies

Basics for Pay Design to Pay Administrative Framework

Basics for Pay Design to pay Administrative Framework

Business strategy and Compensation Strategy Linkage

Business Strategy Compensation Strategy

Defender strategy Prospector strategy Analyzer strategy

Mechanistic strategy Organic strategy

Mixed compensation strategy

Compensation Strategies of Hightechnology Firms

Individual based compensation Risk sharing Market driven pay Higher discretion Aggregate incentives Time orientation

Reward System Components of Rapidly-growing Firms

Base pay/Salary
Benefits Short-term pay incentives Long-term pay incentives

Organizational Life Cycles and Compensation Strategy

At Start-up stage
At Growth stage At Mature stage At Decline stage

Total Compensation and Rewards Strategy

Components of total compensation and rewards strategy:Audit of current programmes Internal business factors External environmental and market factors

a)

b)

c)

THANK YOU!!