COMPENSATION and BENEFITS

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COMPENSATION and BENEFITS by Mind Map: COMPENSATION and BENEFITS

1. DEFINITIONS

1.1. Compensation refer to all form or financial, return and tangible services and benefits employee received as part of an employment relationship

2. OBJECTIVES of BENEFITS PACKAGE

2.1. 1. To attract qualified candidates at the time of recruitment, as well to retain invaluable human resources for the long term.

2.2. 2. To retain the top employee

2.3. 3 To promote loyalty

3. CONTRASTING PERSPECTIVE OF COMPENSATION

3.1. Society views

3.1.1. Pay a measure of justice

3.1.1.1. Benefits of a reflection of justice in society

3.1.1.1.1. Belive that pay increases lead to price increases

3.2. Stake holder's views

3.2.1. Linking executive to pay the company performance theoretically increase stakeholders returns.

3.3. Employees views

3.3.1. Major source of financial security

3.3.1.1. Return and exchange between employer and themselves

3.3.1.1.1. Entitlement for being an employee of the company

3.4. Manager views

3.4.1. A major expense

3.4.1.1. Use to improve employee behaviors and to improve the organization's performance.

4. FOUR (4) POLICIES CHOICES

4.1. 1. INTERNAL ALLIGNMENT

4.1.1. Focus- comparison among job or skill level inside a single organizations

4.1.1.1. Pay relationship within an organizations affect employee decisions.

4.2. 2. EXTERNAL COMPETITIVESNESS

4.2.1. Compensation relationship external to the organization

4.3. 3. EMPLOYESS CONTRIBUTIONS

4.3.1. Directly affects employees’ attitudes and work behaviors

4.4. 4. MANAGEMENT

4.4.1. Right people get the right pay for achieving the right objectives in the right way

5. TOTAL RETURNS FOR WORK

5.1. TOTAL COMPENSATION

5.1.1. Cash compensation

5.1.2. Benefits

5.2. RALATIONAL RETURNS