Remuneration policies

amy davis
Mind Map by amy davis, updated more than 1 year ago
amy davis
Created by amy davis over 3 years ago
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btec level 3 extended diploma in business, year 2. unit 14- employment law- Stuart Cuthbert Assignment 1- task 2, step 3, P6
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Remuneration policies
1 Time rate systems
1.1 This is where an employees payment will be based on the number of hours which they work over a period of time
1.2 Companies often use this when they have employees who are not on full time contracts.
2 Payment by results
2.1 The more you work, the more you earn
2.2 Direct link to input and output
2.2.1 Tesco offer this and it means that they are helping their employees to have motivation to work more as they are going to get more out of doing so.
3 Wages and salarys
3.1 Wage
3.1.1 A wage is a fixed regular payment earned for work or services, typically paid on a daily, weekly or monthly basis.
3.2 Salary
3.2.1 A salary is a fixed regular payment, typically paid on a monthly basis but often expressed as an annual sum, made by an employer to an employee.
3.3 Wage and salary structure
3.3.1 This is individual for every company and is basically the structure which they use to pay their employees and how they do this.
3.3.1.1 factors to be considered:
3.3.1.1.1 Minimum wage for employees
3.3.1.1.2 Cost of living for area of company
3.3.1.1.3 Job level
3.3.1.1.4 Competitor pay
3.3.1.2 Tesco use this to show their various stakeholders how they recognise the importance of their employees as a company.
4 NI contribution
4.1 This is the money which employees have to pay form what they earn as a contribution to National Insurance
4.2 This will effect Tesco as there are secondary rates which have to be paid by the employer and this means that any rises for employees will subsequently effect Tesco as well.
5 Incentive schemes
5.1 This is a formal scheme used to promote or encourage effeicent working behaviour giving the employees a reward for doing so.
5.1.1 By Tesco offering this, they are helping god employer and employee relations and welfare as well as helping to establish a friendly working environment.
6 Additions to basic pay
6.1 Overtime
6.1.1 This is where you work more than you are contracted to and are therefore likely to be paid more for doing this such as time and a half
6.1.1.1 Tesco offer overtime to employees giving them the reward for and incentive to work extra and pay employees time and a half.
6.2 Bonuses
6.2.1 This is where the company will set an employee targets and if they reach that then they are likely to earn a reward from this which is normally in monetary value
6.2.1.1 Tesco may also offer their staff gifts and discounts as a form of bonus or reward for the hard work they put in to the business.
6.3 Special allowances
7 Income tax
7.1 This is the tax which an employee has to pay the government based on what they are payed from their job.
7.2 Not all Tesco employees will have to pay this as not all of them earn enough to do so and Tesco could therefore offer non-monetary benefits to their employees such as private health care costs.
8 Skill based payment systems
8.1 This is where you are paid more if you have more skills needed for the job
8.2 Factors to consider:
8.2.1 What are the skills needed for the job?
8.2.2 What happen if an employee lacks these skills?
8.2.3 How can you regularly assess the skills?
8.2.4 Are the skills that you are paying for having a positive impact on the operations of the company?
8.3 For Tesco, when they employee with a certain skill, they must regularlycheck and assess the employee for that skill and also ensure that the particular skills is positively contributing toward the business and is thereofre worth paying employees extra for.
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