Professional Documents
Culture Documents
Context
SHRM
Legal environment
International
Procuring
Planning
Recruiting
Selection
Compensation Defined
The package of quantifiable rewards an
employee receives for his/her labors.
Three components:
Base compensation
Pay incentives
Indirect compensation
Procedure
Advantages
Disadvantages
Simplest method;
Only general rating of
inexpensive, easily - not very reliable
understandable.
doesnt measure
differences between jobs.
Classification
Ambiguous, overlapping
grade descriptions
Point factor
Reduce general
factors to subfactors: give each
factor weights and
points; use points
to determine
grades.
Time-consuming process
more difficult to understand; greater opportunity to disagree.
Problem Solving
Accountability
1.
2.
3.
Degree
Light work involving a minimum of physical effort.
Requires only intermittent sitting, standing, and walking.
Repetitive work of a mechanical nature. Small amount of lifting and
carrying. Occasional difficult working positions. Almost continuous sitting
or considerable moving around.
Continuous standing or walking, or difficult working positions. Working
with average weight or heavy materials and supplies. Fast manipulative skill
in almost continuous use of machine or office equipment on paced work.
Job Rating
Conduct
Survey
Create Job
Worth Hierarchy
Analyze
Market Data
Reconcile
Internal and External
Considerations
Develop Pay
Structure
Job Rating
Conduct
Survey
Create Job
Worth Hierarchy
Analyze
Market Data
Reconcile
Internal and External
Considerations
Develop Pay
Structure
Skill-based Pay
Advantages?
motivation, flexibility, reduced absenteeism and
turnover costs (can cover), flatter
Disadvantages?
Labor costs; Rusty skills, loss of labor specialization
When?