ByProf.

Deepika Pandita

COMPENSATION

Compensation refers to all financial returns and

tangible benefits that employees receive as part of
an employment relationship.

COMPONENTS OF COMPENSATION

OBJECTIVES OF COMPENSATION
Total compensation management aims to:

Motivate all employees.

Support culture, management by driving and supporting the
desired behaviour.

Support the achievement of the organizations strategic and

short-term objectives by aligning the compensation with the
achievement of the organizational objectives through variable
pay schemes.
Contd

OBJECTIVES OF COMPENSATION

Poise the organization to compete in the employment

market.
Promote flexibility by replacing the traditionally rigid
pay structures with more flexible structures.
Establish pay levels for positions on the basis of their
eternal competitiveness with relevant labour markets
and their relative internal value.
Contd

OBJECTIVES OF COMPENSATION

Administer pay equitably and consistently.

Regularly reward employees on the basis of work
performance.
Maximize the effectiveness of compensation funding
based on recruiting, retention and employee
motivational outcomes.
Ensure accountability for compliance within the rules
and regulations and statutory requirements.

Total Compensation

Direct

Wages / Salaries
Commissions

Indirect
Time Not Worked
Vacations
Breaks
Holidays

Insurance Plans
Bonuses
Gainsharing

Medical
Dental
Life

Security Plans
Pensions

Employee Services

Educational assistance
Recreational programs

SOURCES FOR SALARY SURVEYS

Sources of Wage and

Salary Information

Employer
SelfConducted
Surveys

Consulting
Firms

Professional
Associations

Government
Agencies

The
Internet

SOME PAY DATA WEB SITES

Sponsor

Internet Address

What It Provides

Downside

Salary.com

Salary.com

Salary by job and zip code,

plus job and description, for
hundreds of jobs

Adapts national averages

by applying local cost-ofliving differences

Wageweb

www.wageweb.com

Average salaries for more

than 150 clerical, professional,
and managerial jobs

Charges $169 for

breakdowns by industry,
location, etc.

Paycheck India
and
WageIndicator

www.paycheck.in

Input current salary and use

salary checker

Based on gross earnings.

HT

www.shine.com

Salary by job, designation

Based on gross earnings

moving.com

moving.com

Median salaries for thousands

of jobs, by city

Doesnt consider factors

like company size or
benefits

cnnmoney.com

cnnmoney.com

Input your current salary and

city, and this gives you
comparable salary in
destination city

Based on national averages

adapted to cost of living
differences