Total Compensation System

Definition
1. Financial and Non-financial
2. tangible services and benefits
3. receive as part of an employment relationship
4. employees receive in exchange for their contribution to the organisation
Purposes and Objectives
1. Acquired qualified personnel
2. Retain current employees
3. Ensure equity
4. Reward desired behaviors
5. Control costs
6. Comply with legal requirements
7. Facilitate understanding
DIRECT FINANCIAL
1. Base Pay
  1. Recurring
  2. Types
    1. Wage
    2. Salary
  3. Structure
    1. Monthly Basic Salary (80%)
      1. MFC
      2. MVC
    2. Bonus (20%)
      1. AWS
      2. VB
2. Performance-Based Pay
  1. incentives, commissions, and bonuses
  2. Types
    1. INDIVIDUAL
      1. Reward employees whose work is performed independently for meeting work-related performance standards
    2. TEAM-BASED
      1. Compensates employees for the goals they meet as a collective group, rather than as individuals.
    3. COMPANYWIDE
      1. Reward employees on the basis of the success of the organisation over a specified time period
INDIRECT FINANCIAL
1. Legally required
  1. Mandated by rule of law of a particular country
2. Voluntary
  1. Not legally required
3. Flexible Benefits
NON- FINANCIAL
1. satisfaction that a person receives from the job itself or from the psychological and/or physical environment in which the employee works.
  1. Job Content
  2. Job Environment
  3. Work Flexibility

Resource summary

	Created by jacqueliinek almost 9 years ago