Components of Employee Compensation and Benefits
Essay Preview: Components of Employee Compensation and Benefits
Report this essay
Determine appropriate components of employee compensation and benefits.
In this recession, more and more organizations are less likely to offer compensation or any other types of benefits to their employees. Some of the components that employers frequently use are: Job analysis, job evaluation, job description, pay structure.
Love, we are going to need to make up our own based on experiences or paraphrase the remaining. A combination of both would not hurt either.
Some of the components of employee compensation and benefits are: Job descriptions define in writing the responsibilities, requirements, functions, duties, location, environment, conditions, and other aspects of jobs. Descriptions may be developed for jobs individually or for entire job families.
Job analysis: The process of analyzing jobs from which job descriptions are developed. Job analysis techniques include the use of interviews, questionnaires, and observation.
Job Evaluation: A system for comparing jobs for the purpose of determining appropriate compensation levels for individual jobs or job elements. There are four main techniques: Ranking, Classification, Factor, Comparison and Point Method.
Pay structure: Useful for standardizing compensation practices. Most pay structures include several grades with each grade containing a minimum salary/wage and either step increments or grade range. Step increments are common with union positions where the pay for each job is pre-determined through collective bargaining. Salary Surveys: Collections of salary and market data. May include average salaries, inflation indicators, cost of living indicators, salary budget averages. Companies may purchase results of surveys conducted by survey vendors or may conduct their own salary surveys. When purchasing the results of salary surveys conducted by other vendors, note that surveys may be conducted within a specific industry or across industries as well as within one geographical region or across different geographical regions. Know which industry or geographic location the salary results pertain to before comparing the results to your company.
Different types of compensation include:
Base Pay
Commissions
Overtime Pay
Bonuses, Profit Sharing, Merit Pay
Stock Options
Travel/Meal/Housing Allowance
Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes.