Managing Compensation

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Managing Compensation

Procedures for grading jobs & fixing salaries

Increments upon promotion

Fixing salaries on appointment

Grading jobs

Monitoring the salary system

Monitoring internal relativities

Monitoring external relativiities

Salary problems

Out-of-date job evaluation schemes

Employee on salary maximum

Performance pay problems

Keeping pace with market rate

Salaries reviews

Controls of salary reviews

Individual salary review

Regional & Organisation variable

Organisation size and profitability

Industry

Location

Compensation management policy

Policy area

Communication

Total remuneration

Amount of central control

Salary structure

Equity

Rewards for performance

Influence of market rates

Pay posture

The compensation management process

PHASE 4 : Pricing job

Job evaluation worth = Labor market worth

PHASE 3 : Salary survey

Own survey

Purchased survey

PHASE 2 : Job evaluation

Point method

Job grading

Ranking

PHASE 1 : Job analysis

Job specification

Job description

Aims of compensation management

Aim of the Trade Union

Essential mark of specialist's organisation is get most limits benefits for their people without unduly prejudicing their future security

Aim of the individual employee

Paid by his own validation of worth

Individual master has his own special idea worth and have to feel he is being administrative sensibly

Aim of the organisation

Comply with legislation

Control Cost

Further administrative efficiency

Recognise responsibility

Ensure internal equity

Reward desirable behaviour

Retain good employee

Acquire qualified employees