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On and Benefits System

The document discusses total rewards and compensation systems. It defines total rewards as all tools used to attract, retain, and motivate employees, including direct compensation, indirect compensation, career opportunities, and work environment. It outlines the components of direct compensation as base pay and variable pay, and indirect compensation as benefits like paid time off, protection plans, and employee services. The document stresses evaluating compensation systems based on internal equity, external equity, and individual performance to ensure fair pay structures and incentive schemes.

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wellhabahsy8293
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40 views

On and Benefits System

The document discusses total rewards and compensation systems. It defines total rewards as all tools used to attract, retain, and motivate employees, including direct compensation, indirect compensation, career opportunities, and work environment. It outlines the components of direct compensation as base pay and variable pay, and indirect compensation as benefits like paid time off, protection plans, and employee services. The document stresses evaluating compensation systems based on internal equity, external equity, and individual performance to ensure fair pay structures and incentive schemes.

Uploaded by

wellhabahsy8293
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Generation Brief Introduction For

Compensation and Benefits System


Introduction:

Total Rewards

“All the tools used to attract, retain and motivate employees”

A Total Rewards approach encompasses:

1. Direct compensation (cash)

2. In-direct compensation (Benefits)

3. Career Opportunities

4. Work Environment

Total Compensation System

“All forms of financial returns that employees receive from their employers”

Direct Compensation (Cash)

1- Base Bay (The basic monetary compensation that an employee receives, usually as a wage or
salary)
2- Variable Pay (Compensation linked to individual,team, or organizational performance, e.g.,
commissions, bonuses ..etc)
Indirect compensation:

All types of benefits given to the employees as per their grades and eligibility Policy:

1- Pay for TIME OFF work:


 Annual Vacations
 Sick Leave
 Holidays
 Special time off

2- Protection Plans
 Medical Insurance
 Life Insurance
 Social Insurance
 Pension
 Retirement program
 Employee fund

3- Employee Services
 Transportation
 Air ticket class
 Business trips
 Laundry
 Free meals
 Recreation facilities
 Personal loan
 Mobile phone allowance
 Company products
 Discounts

Through Our Interaction to gurantee that your full compensation system through satisfying the
three main equity:

1- Internal Equity (comparisons across jobs in the same organization ) (e.g: yThe salaries of
technician differ than value of senior technician and there is a sound job evaluation system done
to grade the jobs)
2- External Equity (comparisons of similar jobs in different organizations using bench mark jobs
and survey the market Regarding Salaries)
a. Industry Bench Mark
b. Market benchmark
3- Individual (Assure that there is a pay for performance compenstion system based on reliable
performance management Criteria)

Job Evaluation Techniques:

We must interact to check that the previous job evaluation techniques used in your grading
system is sound ,valid and reliable on order not to bench mark on non valid results

Examples of all Job Evaluation Techniques:

After we survey the market the management has to guide us through development of the
pay structure based on the following three main compensation decsions

• Match the market


• Lead the market
• Lag the market

Pay structure
Incentive Schemes:

“Tying pay to some measure of individual, group or organizational performance”

Incentive Scheme Types:

1- Individula Incentive Plans (Incentive payments may be determined by):

a. the number of units produced,

b. Achievements of specific performance goals

c. Productivity improvement in the organization as a whole.

2- Team / Group Incentives Pay Plans (A plan in which a production standard is set for a
specific work group and its members are paid incentives if the group exceeds the
production standard)
3-

List of Incentive plans:

1- Incentives For Operations Employees

a. Piece Rate System

b. Team Or Group Variable Pay

2- Incentives for managers and executives

a. Base pay + guaranteed bonus

b. Short term incentives (Annual Bonus)

c. Long term incentives

3- Incentives for salespeople

a. Salary plan

b. Commission plan

4- Incentives for professionals and non managerial employees


a. Merit Pay

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