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1、1,Compensating Employee,2,Main points,Compensation and compensation management Principles of compensation management Methods and Process of designing compensation Trends of compensation,3,Non-monetary rewards,Career rewards,Social rewards,Monetary compensation,Direct compensation,Basic salary,Incent
2、ives,Indirect compensation,Public protection,Private protection,Paid leave,Life-cycle benefits,Compensation,4,1.Non-Monetary Rewards,1) Career rewards Security Self-development Career flexibility Opportunity for growth in income How many career rewards in a company?,Compensation Management,5,2) Soci
3、al Rewards Status symbols Praise and recognition Task enjoyment Friendship How many social rewards in a company?,Compensation Management,1.Non-Monetary Rewards,6,2.Monetary Compensation A. Direct Compensation,1)Salary (Regular pay) (a) Basic Salary (Including Shift Pay and Premium Pay) (b) Competenc
4、y- Nonoptional items will be included such as social security, workers compensation, unemployment insurance.,2.Monetary Compensation B. Indirect Compensation (Benefits),18,Importance of compensation,Improving efficiency of labor cost Attracting potential job applicants Retaining good employees Motiv
5、ating employees Attaining business needs and objective,19,Incentives,Benefits,Base salary,Compensation Management,Compensation,20,Definition of CM,CM involves the assessment of employee contributions in order to distribute fairly and equitably both direct and indirect organizational rewards in excha
6、nge for these contributions.,Compensation Management,21,Influence of CM on Behavior,Adamss equity theory Output Output (Own) vs. (others) Input Input Other: same job in the same organization; other jobs in the same organization; same job in other organizations,Compensation Management,22,Equity Theor
7、y Predictions,Outputs Inputs,Outputs Inputs,Outputs Inputs,=,Outputs Inputs,Outputs Inputs,Outputs Inputs,Under-reward,Equity,Over-reward,Person B,Person A,23,Perceived unfairness,Overpay vs. underpay Behaviors after perceived unfairness: Change the person to be compared Distort ones own perception
8、Ask for increasing salary Decrease effort Leave the organization,Compensation Management,24,Compensation Philosophy,Pay for performance or process? Leader or follower?,Market Job Competency,Compensation Management,Result,25,Build up CM,For internal fairness Job evaluation reflect the contribution of
9、 each job For external competitiveness Salary survey Decision on CM policy,Compensation Management,26,Methods of Job Evaluation,Job ranking Job classification Factor comparison Point rating-Hay method,Compensation Management,27,Ranking method (P190),The simplest method of job evaluation that involve
10、s ranking each job relative to all other jobs, usually based on overall difficulty. Benchmark jobs (key jobs) are jobs against which other jobs are compared to determine relative value. Fist level、Second level、Third level,Compensation Management,28,Job classification method,Means putting jobs into f
11、amilies or classes. Job contentclasses class description Difficultygrades e.g. Manager class; S Operator class,Compensation Management,29,分类法举例:某工程公司的职位分类系统,Compensation Management,30,Factor comparison method,Jobs are broken down into factors in order to determine the value of the job. STEPS: *Selec
12、t some key factors: SRC (p190) Conduct job analysis Pick benchmark jobs Allocate benchmark wages across factors Slot no-benchmark jobs,Compensation Management,31,Compensation Management,32,Point Factor Method Steps,Select and define compensable factors. Determine number of degrees for each factor. D
13、efine each degree level. Weight compensable factors. Assign point values to degrees.,33,Experiential Exercise: Evaluating the Job of Instructor, dustman, president,34,Sample of a point-factor method evaluation form,Factor 1: physical and mental effort 50 Factor 2: education and experience 210 Factor
14、 3: judgment 200 Factor 4: contact 200 Factor 5: consequence of error 100 Factor 6: working conditions 50 This factor considers the risks and discomforts surrounding the job and its environment.,35,DEGREES 1. The work environment involves everyday risks and discomforts that require normal safety pre
15、cautions. The work area is adequately lighted, heated, and ventilated (10 points) 2. The work environment involves moderate risk and /or discomforts that require safety precautions. Light heat ,or noise levels may be unsatisfactory. Employees may be required to wear earplugs, safety glasses,etc,(25
16、points) 3. The work environment involves high risks with exposure to potentially dangerous situations or unusual environmental stress. Examples are working under extreme weather conditions, working at great height, and being exposed to fumes, acid, dangerous chemicals, etc. (50 points),36,37,Pay Gra
17、des,$,Points,1,2,3,4,PointGradeMin Max Range $ $ 100-300 115 20 301-450 2 18 23 451-600 321 26 601-750 424 29 751-900 5 27 32 901-1050 6 30 35,38,4660 3885 3910,5130 4275 3720,5400 4700 3760,6260 5215 4170,7950 5790 4630,8780 7265 5190,10720 7265 7810,12030 8355 8680,1 2 3 4 5 6 7 8(等级),Compensation
18、 Management,39,From points to Grade,Making Point-Distance(e.g.150points) Making Grade-Distance(e.g.20%) Making Grade-Range(e.g.25%),Compensation Management,40,Misunderstanding of compensation,Compensation of employee = Cost of employee? Reduce compensation = Reduce cost ? Low cost of employee compet
19、itive advantage Employees work only for money Higher salary Higher performance,Compensation Management,41,新联汽车公司案例,新联汽车公司支付全行业最高的工资,大约高出10%。 该公司总装厂的效率比同类总装厂要高出几乎50%。 该公司的劳动力成本依然比较低。,Compensation Management,42,通用汽车,通用虽然采取了一系列降低成本的措施、例如外包、降低工资等。但因为效率较低因而劳动成本依然较高。 通用花费的劳动小时高出日产68%,比福特高出20% 。,Compensati
20、on Management,43,摩托罗拉的反向投资,1996年华尔街日报报道尽管德国劳动成本较高,但是摩托罗拉决定在德国建立一个移动电话生产工厂。,Compensation Management,44,对中国的投资,低劳动成本 低工资 竞争优势? 行业:劳动密集性产业,科技含量低,引发了现在的反投资趋向,Compensation Management,45,External Competitiveness,Collecting salary survey information Establishing a pay policy Establishing pay rates,46,Salar
21、y survey,Determine what information to collect Salary range Average starting salary Average salary level Benefit options Select benchmark jobs Clearly defined Representative Encompass a sizable number of employees Select which companies to survey Relevant market,47,PAY,Our Job Evaluation Points,Scat
22、terplot,120,160,200 240 280 320 360,survey monthly salary ($000),7 6 5 4 3 2 1,80,Compensation Management,48,PAY,Our Job Evaluation Points,120,160,200 240 280 320 360,survey monthly salary ($000),7 6 5 4 3 2 1,80,Line of Best Fit : using market-survey data,Compensation Management,Scatterplot,49,Pay
23、Policy Lines,Market Rate,Job Evaluation Points,Market Pay,Lead Policy,Lag Policy,50,Three Pay Policies,Pay PolicyAttract RetainMotivate Lead + + ? ? Match = = ? = Lag - ? ? +,Control Costs,51,Compensation Management,52,External fairness,Product market Max of compensation Labor market Min of compensation,Compensation Management,53,Compensation of MNC,Based on parent or local company? BASE PAY LOCAL DIFFERENTIALS COST OF LIVING INCENTIVES LEAVE HOME,FRIENDS ASSISTANCE PRO
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