WEEK 1: INTRO TO COMPENSATION

ADMINISTRATION COMPENSATION ADMINISTRATION

- Compensation Administration is a
Compensation strategic management tool of
- Compensation refers to all forms of compensation management and HR
financial return and tangible services management to match productivity
and benefits employees receive as with the cost of labor and employees
part of employment relationships. to get satisfaction with their worth
- Employee compensation is generally and values.
one of the largest costs or expenses - It then fulfills the objectives of both
for any organization. the employers and the employees.
- Employee compensation refers to - The goal of compensation
the benefits (cash, vacation, etc.) administration is to design a
that an employee receives in cost-effective pay structure that will
exchange for the service they attract, motivate, and retain
provide to their employer. competent employees.
- The structure should also appear fair
Basic paytime: 25% to employees. Fairness is a term
Overtime pay: 25% that frequently arises in the
On holiday: 30% administration of an organization’s
To have 13th-month pay: 1 month compensation program.
Breaktime is not compensable
COMPENSATION OBJECTIVES:
Mag compensate lang ang isang tao pag ● To attract and retain competent
may instruction. employees
● To establish fair and equitable
COMPENSATION compensation
- Compensation may achieve several ● To control costs and improve
purposes assisting in recruitment, productivity
job performance, and job ● To comply with legal regulations
satisfaction. It is a tool used by ● To reward the desired behavior
management for a variety of ● To improve the company’s goodwill
purposes to further the existence of in the eyes of the general public and
the business. employees.
- Compensation Administration refers
to the tasks of compensation Equitable - sino yung nangangailangan
managers in designing and Equality - fair para sa lahat
implementing a pay program with a
systematic approach to providing Compensation is a tool used by
monetary value to employees in management for a variety of purposes to
exchange for work performance. further the existence of the company.
- Management of employee Compensation may be adjusted according
compensation is called to the business needs, goals, and available
Compensation Administration. resources.
Compensation may be used to: Payroll
● Recruit and retain qualified - the process of paying a company's
employees. employees, which includes tracking
● Increase or maintain hours worked, calculating
morale/satisfaction. employees' pay, and distributing
● Reward and encourage peak payments via direct deposit to
performance. employee bank accounts or by
● Achieve internal and external equity. check.
● Reduce turnover and encourage Compensation
company loyalty. - describes the cash rewards paid to
● Modify (through negotiations) employees in exchange for the
practices of unions. services they provide. It may include
base salary, wages, incentives,
“TURNOVER” - umalis sa company and/or commission.
loyalty/retention - nag stay sa company Benefits
- Employee benefits are
Wages non-monetary value and are not
- pinakamababang na pwede based on performance but on
swelduhin ng isang tao membership. They are indirect forms
- 573 pesos - 610 pesos of compensation and are paid
- refers to all pay or earnings that an regardless of the performance. They
employer gives a worker in can determine their benefits
exchange for work performed during package to be availed.
regular working hours and days; it
excludes, however, cost-of-living Note:
allowances, profit-sharing payments,
premium payments, 13th-month pay, Salaries and wages vary depending on the
and other financial benefits nature of work, location of work, and time of
Salary work.
- is a regular payment agreed upon in Salaries for those working in cities are
an employment contract, and it's higher than for those who work in provinces.
linked to the number of hours
defined in the contract. Compensation includes:
- a fixed amount that is paid to an
employee at regular intervals, Base Pay
irrespective of the hours or amount It is the basic compensation what the
of work performed employee gets, usually as a wage or salary.

A Compensation is made of: Commissions

Job Description a sum of money given to a salesperson for
Job Analysis each transaction.
Job Evaluation
Pay Structure
Overtime Pay Job evaluation
The overtime rate is offered to people who is a system for evaluating jobs to determine
need to work longer than the standard the proper pay scales for specific jobs or job
8-hour shift. components. Ranking, classification, factor
comparison, and point method are the four
Stock Options main methods.
a benefit in the form of an option given by a
company to an employee to buy stock in the Pay Structures
company at a discount or at a stated fixed Useful for standardizing compensation
price. practices. Most pay structures include
several grades with each grade containing a
Bonuses minimum salary/wage and either step
are compensation paid above and beyond increments or grade range. Step increments
one's base salary. are common with union positions where the
pay for each job is pre-determined through
Profit Sharing collective bargaining.
a system in which the people who work for a
company receive a direct share of the Salary Surveys
profits. Compile market and salary data. It includes
Merit Pay salary budget averages, inflation and cost of
type of compensation a company uses to living data, and typical salaries.
reward higher-performing employees with
ongoing additional pay Concepts of Compensation System:
Travel/Meal/Housing Allowance
- Employees perform tasks for
A compensation system is made up of employers and so companies pay
the following parts: employees wages for the jobs they
do.
Job descriptions - Compensation is an exchange or a
specify in detail the responsibilities, transaction from which both
requirements, functions, duties, location, parties—employers and
environment, conditions, and other employees—benefit: both parties
elements of occupations. Job descriptions receive something for giving
are an essential part of both compensation something in compensation.
and selection processes. For specific jobs However, it involves much more than
or entire job families, descriptions can be this simple transaction.
created. - From the viewpoint of the employer,
compensation affects employee
Job Analysis motivation and affordability.
is the process by which job descriptions and - Companies must think about how
Job Specifications are created. Techniques much they can afford to pay their
for job analysis include observation, employees and how their choices
questionnaires, and interviews. will effect employee retention and
productivity.
 - Furthermore, some bosses and
businesses think that remuneration Market competitiveness: In a competitive
can affect employees' work ethics job market, organizations must regularly
and behaviors, linking pay to output. benchmark their compensation packages
against industry standards and competitors.
Phases of Compensation This can be challenging, as it requires
access to accurate market data and a
thorough understanding of the market
dynamics.

Pay equity: Ensuring pay equity across the

organization is an ongoing challenge.
Compensation managers must carefully
Roles of Compensation Managers analyze salary structures to identify and
address disparities based on gender, race,
- Compensation managers are or age. This requires vigilance and a
responsible for researching, commitment to fairness and transparency.
establishing, and maintaining a
company's pay system. Regulatory compliance: Compensation
- This involves researching and management must comply with various
understanding the current and labor laws and regulations, which may vary
upcoming competitive markets for by location and industry. Keeping up to date
employee pay and benefits. with these regulations and ensuring
compliance can be time-consuming and
complex.

Performance measurement: Developing a

fair and objective system for measuring
employee performance is crucial for linking
compensation to performance. However, it
can be challenging to create performance
COMPENSATION IN THE PHILIPPINES metrics that accurately reflect an individual's
contributions and account for the various
Challenges in Compensation factors that may influence performance.
Administration
Balancing intrinsic and extrinsic
Budget constraints: Organizations often rewards: In addition to monetary
need more compensation budgets, making compensation, employees also value
it difficult to offer competitive pay packages non-financial rewards such as recognition,
while still controlling costs. Balancing growth opportunities, and a positive work
employee expectations and financial environment. Striking the right balance
resources is a significant challenge, between financial and non-financial rewards
particularly for small businesses or those in is crucial for maximizing employee
highly competitive industries. satisfaction and engagement.
Communication and transparency: – an all-encompassing legal code intended
Communicating compensation policies and to protect the workers in the country. Parts
decisions clearly and transparently is of the labor code are the benefits and
essential for building trust and fostering compensation rules that employers ought to
employee buy-in. However, this can be follow when employing Filipino workers.
challenging, particularly in large or complex
organizations where multiple factors may • The National Wages Productivity
influence compensation decisions. Commission (NWPC) is an attached
agency of the Department of Labor and
Retention and turnover: High employee Employment (DOLE). Justly remunerated
turnover can be costly and disruptive, so and productive Filipino workforce in globally
organizations must implement competitive enterprises. Its mission is to set
compensation strategies that support minimum wage that protects vulnerable
employee retention. This requires a deep workers from undue low pay. Promote
understanding of employee preferences and productivity improvement and incentive
priorities and the ability to predict and schemes among MSMEs.
respond to changing workforce dynamics.
Adapting to change: The business • The Social Security System (SSS)
environment constantly evolves, and administers two programs: 1) the Social
organizations must adjust their Security Program for death, disability, old
compensation strategies to remain age, maternity, and sickness; and 2) the
competitive. This may involve reevaluating Employees' Compensation (EC) Program
salary structures, adopting new for work-related injury, sickness, or death.
technologies, or rethinking traditional
approaches to employee rewards. • PhilHealth is mandated to provide
universal health insurance coverage and
Implementing technology: Leveraging healthcare services for all citizens of the
technology in compensation management Philippines. PhilHealth members receive
can help streamline processes and improve financial assistance for medicine, hospital
efficiency. However, selecting the right tools costs, and certain inpatient and outpatient
and systems and ensuring proper procedures.
integration with existing HR systems can be
a significant challenge. • The Pag-IBIG Fund provides a national
savings and housing assistance program for
all members. Qualified members can avail
GOVERNMENT AGENCIES of housing loans, multipurpose loans, and
RESPONSIBLE FOR COMPENSATION calamity loans. Besides its regular savings
AND BENEFITS IN THE PHILIPPINES program, members can also participate in
the Modified Pag-IBIG 2 special savings
• The Department of Labor and facility for higher dividends.
Employment (DOLE) regulates the benefits
and compensation policy in the Philippines. • The BIR refer to national internal revenue
This government agency follows the rules taxes imposed and collected by the national
stated in the Labor Code of the Philippines government through the Bureau of Internal
Revenue (BIR) and local taxes refer to equal remuneration for work of equal
those imposed and collected by the local value.
government.
Wages:
Attached Agencies of DOLE - The steps involved in determining
wage rates are: performing job
• National Wages and Productivity analysis, wage surveys, analysis of
Commission relevant organizational problems,
• Regional Tripartite Wages and Productivity working wage administration,
Board explaining these to employees.
• National Labor Relations Commissions • Assigning grades and price to each
Employees’ Compensation Commission job and paying the guaranteed.
• National Conciliation and Mediation Board
• Occupational Safety and Health Center •
Technical Education and Skills Development TYPES OF WAGES
Authority (TESDA)
• Professional Regulation Commission 1. Piece rate wages
(PRC) - These are wages paid according to
• Philippine Overseas Employment the work done by the worker. (rate
Administration paid per unit of production x number
of units completed in the pay period.
WEEK 2: WAGES AND ITS
SIGNIFICANCE 2. Time wages
- If the worker is paid for his services
Wages - are the price paid for the services according to the time. It is called
of labor in the process of production and time wage.
include only the performance wages or
wages proper. 3. Cash wages
- It refers to the wages paid to the
Purpose: for daily living, protection. labor in terms of money. The salary
paid to a worker is an example of
- The purpose of minimum wage is to cash wages.
protect workers against unduly low
pay. They help ensure a just and Blue collar - skilled people, not graduate
equitable share of the fruits for White collar - obtained a degree, offices
progress to all, and a minimum living
wage to all who are employed, and 4. Living wages
in need of such protection. - Refers to the least amount of money
- Minimum wages can also be one an employer can offer to an
element of a policy to overcome employee.
poverty and reduce inequality.
Including those between men and 5. Minimum wage
women, by promoting the right to
 CONCEPT OF WAGES ● Should be accepted by all
employees to reduce worker
Money wages or Nominal wages turnover and absenteeism
- Refers to the total amount of money ● Should be flexible to adopt changes
received by the laborer in the ● Should ensure incentive for good
process of production. performance, which helps to
- Hanggang saan ang aabutin ng increase efficiency and productivity.
wage mo. ● Should be able to satisfy workers
which leads to motivation which
Real wages helps or improve productivity.
- Is the type of wage that take inflation
rates into consideration. This wage SIGNIFICANCE OF WAGES
determines the purchasing power of
the individual and the amount of ● To the worker: wages are not only
goods and services the individual the remuneration of the workers for
can purchase given the current their contribution in production but
market condition. their very means of livelihood.
Real wages computation: nominal ● Wages as purchasing power:
wage / consumer price index * 100 = Wage earners and their families form
real wages a large and important segment of the
market for consumer goods and
services. They represent their only
Wage system source of livelihood.
- Refers to compensation to an ● The level of living thus depends
employees with a fixed sum per upon the amount of money which
piece, hour, day, or another period of the workers take home.
time covering all compensations
including salary. LEVELS OF LIVING
- Should be the introduction of a fair
wage. 1. Poverty Level - those workers
- Fair wage is a wage equal to that whose incomes are very irregular
received by the employees due to their lack of any desired skills
performing equal work and having they can offer
equal skills. 2. Minimum of subsistence level -
This level are those workers who
● In the Philippines, the two tiered provide the basic needs but do not
system were introduced by the provide social needs
NWPC DOLE. 3. Minimum health and decency -
This level are those workers who
CHARACTERISTICS OF A GOOD WAGE provide meager (insufficient)
SYSTEM provision for education, amusement,
and insurance.
● Should be fair and scientific 4. Minimum of comfort standard - In
● Guaranteed minimum payment this level the remuneration of an
 employee is so high that he can command but doubtless so is the
provide for all the basic necessities national economy.
and meet all the requirements of
comfort for himself.

WAGES AS COST OF PRODUCTION

- The cost of production is also called
production cost or cost price. It is the
total cost sustained by a business to
produce a specific quantity of a
product. It includes all direct and
indirect cost of manufacturing the
product
- Cost of production includes: Cost of
raw materials, labor(wages),
storage, technology used,
maintenance, land
- Wages are the price which the
entrepreneur must pay for the
service of labor. In other words, they
are a cost of production and a major
one

RELATION OF LABOR COST TO TOTAL

COST
Cost of labor is the sum of all wages paid to
an employee, as well as the cost of
employee benefits and payroll taxes paid by
an employer

Unit labor cost is calculated as the ratio of

labor compensation to output

EFFECTS ON THE NATIONAL ECONOMY

- It is frequently said that we live in a
wage economy. Not only is the
standard of workers affected by the
wages they receive, and the
purchasing power they have at their
 • Commission
WEEK 3: WAGES SUPPLEMENTS • Tips
• Over-time pay
Supplements refer to extra remuneration or
benefits received by the wage earners from their PROFIT SHARING ORIGIN
employers. In other words, supplements ° The profit sharing was first devised by a
constitute remuneration or special privileges Frenchman named EDME
received by the employees over or above their JEAN LECLAIRE.
ordinary earnings. ° One of his employees was reported to have
said to him that the participation of the workers
KINDS OF COMPENSATION in the profits of the employer is the only way to
get free of the hatred between them under the
organization system of production.
° This scheme attracted considerable attention
not only in France but also in England so much
so that about the middle of the 19th century,
their principles were advocated principally by the
Christian Socialists, who influenced co-operative
societies to apply them to their employees.

PROFIT SHARING
° An agreement (formal or informal) freely
MEANING entered into by which employees receive a
share fixed in advance of the profits. (
According to Business Dictionary Wage International Congress on Profit Sharing, 1889)
Supplements are compensation received from ° It is a payment in the form of cash, stock
employment that is in addition to the regular, options, or otherwise, given under a
ordinary salary or wages. They include predetermined and continuing policy sought by
commissions, overtime earnings, awards, management of a company to all or any group of
bonuses, retirement matching programs, or its officers or employees in addition to their
payment for unused vacation days. wages.
° Profit sharing excludes gifts, gratuities, or other
PURPOSE payments made by an employer to his
employees out of profits at his discretion without
- To persuade and motivate employee; being bound by a scheme.
- Not linked with employee performance; ° Profit sharing schemes is usually through the
- Help increase the wealth and well-being initiative of the individual firms, and in
of employees at the cost of an employer consequence
schemes vary widely to suit the conditions of
TYPES each company and the purposes and attitude of
employers who introduces them.
Supplemental wages includes: ° Profit sharing is usually free to terminate at any
• Profit-sharing time, but until the employer does so they are
• Paid vacations (not rendered work) bound to observe its provisions.
• Bonuses
OBJECTIVES OF PROFIT-SHARING OBJECTIVES OF SPECIAL BONUSES

° To instill a sense of partnership among its ° The practice of paying Christmas bonus is that
employees and thus prevent they promote goodwill, loyalty, and stability
industrial friction or unrest. among employees and also provide a means of
° To serve as group incentive. Employees sharing some of the company’s income during
participate in the profits of the company, they are prosperous times without committing the
motivated to work harder and help contribute to company to added costs which would be difficult
the success of the firm. to reduce during periods when profits are not H
° To provide employee security. high.
° To attract desirable employees to join the
organization and moreover reduce turnover on PRODUCTION BONUS SYSTEM
the part of those who are already members. ° This system enjoys the advantage of providing
° To serve as an attractive means of employees with more pay for exerting greater
communicating with its employees its philosophy effort while, at the same time, providing them the
of sharing the wealth with them. security of their regular wages.
° A bonus payment may be used upon the
SPECIAL BONUSES number of units that an individual or a group
produces.
° Christmas Bonuses - it is usually paid during
prosperous times, or when excess profits taxes COMMISSION
are unusually high, the payment of Christmas ° Commission refers to the compensation paid to
Bonuses is much more widespread than at other an employee after completing a task, which is,
times. often, selling a certain number of products or
° When bonuses are paid regularly each year, services.
regardless of the economic or tax situation. The ° Commission vary in the way they set and pay
costs are considered as part of the regular to their employees, this includes:
operating expenses of the business; straight commission,
° When their distribution is contingent upon the salary plus
company’s current financial situation, these commission,
bonuses assume the aspect of profit sharing. graduated commission.
° The eligibility requirements vary from industry,
frequently payment of bonuses requires one DE MINIMIS BENEFITS
year of service with the company and
sometimes there are additional attendance and DE MINIMIS BENEFITS NOT SUBJECT TO
good behavior requirements. WITHHOLDING TAX
° The most common type of bonus is based
upon a certain percentage of annual wages. • Monetized unused vacation leave credits to
(e.g. 2 percent) employees not exceeding ten (10) days during
° Some companies pay a uniform amount to all the year;
regular employees, irrespective of individual • Monetized value of vacation and sick leave
earnings or length of service beyond the credits paid to government officials and
required minimum for obtaining a “regular employees;
status”. • Medical cash allowance to dependents of
° Some companies base each individual’s bonus employees, not exceeding ₱ 1,500.00 per
upon a fixed sum per year of service. employee per semester of ₱ 250.00 per month;
• Rice subsidy of ₱ 2,000.00 or one sack of 50kg
rice per month amounting to not more than ₱
2,000.00;
• Uniform and clothing allowance not exceeding
₱ 6,000.00 per annum;
• Actual medical assistance, e.g. medical
allowance to cover medical and healthcare
needs, annual medical/executive check-up,
maternity assistance, and routine consultations,
not exceeding ₱ 10,000.00 per annum;
• Laundry allowance not exceeding ₱ 300.00 per
month;
• Employees achievement awards, e.g. for
length of service or safety achievement, which in
the form of a tangible personal property other
than cash or gift certificate, with an annual
monetary value not exceeding ₱10,000.00
received by the employee under an established
written plan which does not discriminate in favor
of highly paid employees;
• Gifts given during Christmas and major
anniversary celebrations not exceeding
₱5,000.00 per employee per annum;
• Daily meal allowance for overtime work not
exceeding twenty five percent (25%) of the basic
minimum wage;
• Benefits received by an employee by virtue of Incentives are effective motivators when the
a collective bargaining agreement (CBA) and objectives to be met are clearly started upfront
productivity incentive schemes provided that the and when the incentives offered are desirable. A
total annual monetary value received from both company that provides various types of
CBA and productivity incentive schemes incentives, tailored to individual workers,
combined do not exceed ten thousand pesos motivate employees to consistently do their best.
(Php 10,000.00)per employee per taxable year;\
INCENTIVES DEFINITION
WEEK 4: INCENTIVES • An incentive is something, like a prize or
desired action, that gets an employee to do
more of whatever is/was encouraged by the
employer.
• An example of this is a company throwing a
pancake party on Mondays to help employees
get through the day while promoting something
like teamwork throughout the departments of the
company. While enjoying a free pancake
breakfast, employers are able to conduct
meetings and brief employees on the company
as a whole
INCENTIVE SCHEME more interest in work and produce more in the
• An incentive or “reward” can be anything that hope of getting still more monetary benefits.
attracts an employees’ attention and stimulates • Financial incentives also include such
him at work. An incentive scheme is a plan or economic incentives as are given collectively to
program to motivate individual or group the employees.
performance.
• An incentive program is most frequently built MONETARY OR FINANCIAL INCENTIVES
on monetary rewards (incentive pay or monetary
bonus), but may also include a variety of a. Allowances:
non-monetary rewards or prizes. - allowances are made to the employees
• Incentives are needed to increase the under wages/pay packet. It is paid by
productivity of the laborers as also to reduce the employers to the employees in order
cost per unit of labor. to provide relief to the latter against ever
• It is gainful for both the laborers as well as rising prices of consumer goods.
employers to give incentives.
- This incentive is given to compensation
INCENTIVES CAN: for rising prices or consumer price index.
• Increase productivity - It is an important part of the wages paid
• Encourage teamwork to the employees. Today, allowance is
• Thank employees for doing their work well given to all government and most of the
• Keep employees happy private sector employees.
• Reward high achieving employees - Initially allowances was kept separate
• Build trust with employers from the basic salary.
• Problem of absenteeism and late-coming - Presently, allowance used to be treated
comes to an end as an additional income of the workers.
And payment of allowance has become
TYPES OF INCENTIVES an integral part of wage payment.

1. Monetary or Financial Incentives b. Profit sharing

Allowances - Is an arrangement entered into by which
Profit-sharing the employees review a share, fixed in
Bonus advance of profits.
- It is a scheme, whereby a certain
2. Non-monetary or Non-financial incentives percentage of the profits is distributed at
Job security fixed intervals, usually annually or
Praise and recognition semi-annually, in some definite ratio to
Career Development all employees who have been in
Management Development employment of the firm for a stated term.
- According to International Labor
MONETARY OR FINANCIAL INCENTIVES Organization(ILO), profit-sharing is
method of industrial renumeration under
• Money is the determinant factor of all which an employer undertakes to pay
incentives. In order to increase the efficiency of his employees a share in the net profits
the laborer, various financial incentives such as: of the enterprise, in addition to their
good wage, bonus, allowances, and money regular wages.
related income items ( free medical assistance,
free education, etc.)are very essential.
• Financial incentives impart self-confidence and CHARACTERISTICS OF PROFIT-SHARING
give sense of security to the workers. They take
1. profit is shared between the workers and the
employers in accordance with an agreement. 5. On Departmental Basis:
2. Share out of profits is in addition to the normal - Under this arrangement profit of different
market rate of wages and departments of the industrial unit is worked out
is intended to provide inducement to the separately and distributed among the concerned
workers. departments.
3. Preparation of the profit to be shared is
pre-determined, the employee cannot change it 6. On Individual Basis:
later on. - Under this arrangement profit, pre-determined
4. Share of the profit paid to the workers is share is taken out and distributed among the
based on the net profit or dividend of the workers on basis of their efficiency
industrial unit.
5. It is the profit that is shared between the MERITS OF PROFIT SHARING
workers and the employer and not the loss. 1. Industrial Peace
6. labor-class alone is entitled to it and not the 2. Increase in Production
managerial-class. 3. Economy
7. Each worker, without any discrimination, gets 4. Stability in Job
share out of profit. 5. Reduction in Supervision
8. Individual ability of the worker is not taken into 6. Industrial Democracy
consideration while sharing profit. 7. Increase in Income and Efficiency of workers
9. Distributed share amount is either paid in
cash or credited to the provident fund of the c. BONUS
workers. - To motivate the workers, payment of
10. All workers know their share in advance. bonus is also quite significant. It serves
as monetary incentive and helps
METHODS OF PROFIT SHARING establish cordial relations between
employee and employer.
1. On the basis of industry: - Payment of bonus to workers is
- Under this system, surplus profit of different prevalent in almost all industries. Bonus
units of a given industry is collected and refers to that monetary payment which
distributed equally among all the workers of that is paid to workers in addition to their
industry. wages as a reward for their good
services.
2. On the basis of locality:
- All units operating at one place collect their NON-MONETARY/NON-FINANCIAL
profits and distribute a given percentage of it INCENTIVES
among the workers of all units
• Non-monetary incentives include all those
3. On Industry cum Locality basis: non-financial, social and psychological factors
- Units of a given industry operating in a for which employees get incentives for maximum
particular locality distribute a predetermined and outstanding work.
proportion of their profits among the workers. • Non-monetary incentives play an important role
in getting work with greater efficiency from the
4. On Unit Basis: worker.
- under this agreement, profit of different units is • For the workers monetary reward has a great
worked out significance but of still greater importance is
separately. Each unit distributes a their interest in satisfying social and
pre-determined share of its profit among the psychological needs.
laborer.
• Studies viewed that non-monetary incentives The workers must be made aware of the results
are as important as monetary incentives. of the work being done by them so as to
motivate them to produce still more.
1. Job Security
Every employee wants his job to be stable and 7. Recognition
secure. Security of service inspires him to Every employee wishes that his work be fully
perform his duty efficiently. recognized, it should be useful and he should be
indispensable to production process. It makes
2. Opportunity in Progress him conscious of his ability, efficiency, position
Every employee looks for an opportunity to and responsibility. Management should therefore
make progress. It is therefore essential that give due recognition to all kinds of work
everybody should be ample opportunities for performed by the worker so that they are
advancement. It is possible that he may not be inspired to do work with greater zeal.
able to take advantage of the opportunity when it
comes his way but he does hope for the TYPES OF INCENTIVES: NON-FINANCIAL
opportunity. Everyone prefers on higher post to
financial gain. Recognition Incentives
These incentives are actions like thanking,
3. Sound Policy: praising, presenting employees with a certificate
An employee expects justice and fair treatment of achievement, or announcing an
in the company. In matters of promotion or accomplishment at a company meeting. This
transfer, etc., the management must play fair. can be use for individuals or even in the use of
Workers lose confidence in management when the whole company.
the latter exercises discrimination. Besides, their Recognizing the accomplishments of an
enthusiasm for work becomes weak. employee or a whole group of employees with a
simple thank you or a plaque for the
4. Workers participation in management: accomplishment can go a long way in
Workers should have the right to participate in maintaining great work and great relationships.
management of industry or to conduct the
business and to give advice in matters of mutual Rewards Incentives
interests. This will make them realize their This one speaks for itself. This type of incentives
importance and develop in them sense of includes monetary rewards, prizes, or even
responsibility. It has effect both on industry and company trips to help build moral or reward the
production. company. This incentive usually coincides with
the recognition incentives. Sometimes saying
5. Praise: thank you isn’t enough, so saying thank you with
Everybody likes that his good works be a trip or prize can really drive home the point
appreciated. It is the weakness of an ordinary and help encourage the employee to continue
person that he feels greatly flattered at his contributing to the team.
praise. It satisfies his ego.
Appreciation incentives
Praise has great motivational force. It constantly These are the type of incentives that were
inspires the worker to take keen interest in the mentioned above. Parties, family gatherings for
work and adds to his productivity. the employees like picnics, and just general
celebrations for good employee work. Showing
recognition through food and celebration is
always a great way to.
6. Knowledge of Results:
TYPES OF INCENTIVES: FINANCIAL
 employee finishes the work in 6 hours, then
Financial (monetary) his/her compensation is calculated for 8 hours
Compensation incentives which can be raises, even though he/she has completed the tasks in
bonuses, profit-sharing, signing bonus, and 6 hours).
stock options. These are great incentives to help
encourage loyalties to a company. 3. Bonus:
Monetary incentives are those in which - it is an incentive plan given to an employee in
payments are based on a combination of time addition to one’s normal basic pay.
and output units according to an established
formula. 4. Merit pay:
- this incentive payment is based on one’s
TYPES OF INCENTIVES PLAN performance. Those who perform better
1. Individual incentive plans; generally receive more merit pay. This is in
2. Group incentive plans; addition to basic pay. The percentage of
3. Organizational level incentive plans; and increase is attributable solely to performance.
4. Incentives to professional employees. - Lump-sum merit pay, in this plan, employees
receive single lump-sum increase at the time of
1. INDIVIDUAL INCENTIVE PLANS their review. It is not added to their basic pay.
- This incentive plans are influenced by The main advantage is that employees are able
many factors such as: technology, job to see a clear link between their performance
tasks/duties and/or organizational goals. and payment.
- Incentive payments are determined by
the number of units produced, by the
achievement of specific goals, by
productivity improvements or by INCENTIVE AWARDS AND RECOGNITION
availability of money.
Special contributions, achievements or service
TYPES OF INDIVIDUAL INCENTIVES PLAN to the organization are often recognized through
MERCHANDISE AWARDS, PERSONALIZED
1. Piece work: GIFTS, VACATIONS, GIFT VOUCHERS, ETC.,
- It is one of the oldest incentive plans. In a presenting tangible awards with the right
straight piecework incentive plan, the employees message at the right time is an effective way of
receive a certain rate for each unit produced. appreciating good performances. Research
Compensation is determined by the total number showed that non-cash incentive awards along
of units produced during a particular period. In with recognition programs were more effective to
piece rate plan, employees whose production motivate workers.
exceeds the
standard output receives a higher rate for all the SALES INCENTIVES
units they produce than the rate of paid to those As sales job requires drive and enthusiasm, the
who are unable to exceed the standard. sales people must be highly motivated. That is
why financial incentives are used for sales force
2. Standard hour plan: widely. Incentives are important to elicit
- In this plan, payment is determined based on cooperation and trust from sales people as they
the completion of a job in a predetermined are generally in the field away from the office.
standard time. If employees finish their work in Generally, performance of sales people is
less than the standard time, their payment is still measured by the sales volume, the employees’
based on the standard time for the job multiplied ability to establish new contacts, the enthusiasm
by their hourly rate. (if the standard time to to promote new products/services and the
polish a particular equipment is 8 hours and if an
various forms of services provided to the MERITS OF GROUP INCENTIVE PLANS
customers. • Improved efficiency
Performance standards for sales people are • Encourage cooperation and team spirit
difficult to establish as their performance is often • These plan is desirable when tasks are
influenced by many external factors such as independent and measurement of individual
economic/seasonal fluctuations, sales performance is difficult.
competition, changes in demand and the nature
of sales territory. STEPS IN GROUP INCENTIVE PLAN
There are also problems of how to reward extra
sales effort and the activities which do not 1. Setting performance measures-
directly or immediately contribute to sales. improvements in efficiency, product quality or
reduction in materials/labor costs are common
TYPES OF SALES INCENTIVE PLAN benchmarks to base incentive payments. The
same must be informed to the employee.
1. Straight Salary Plan: 2. Determining of the size of incentives- it is
- it is a compensation plan in which sales people deciding certain percentage of sales as
are paid for performing various duties that may incentives.
or may not result in sales. It may not motivate 3. Establishing payment formula- the team
sales people to put in sufficient effort to bonus may be distributed to employees equally,
maximize the sales and it only enables them to in proportion to their basic pay or on the basis of
provide services and build-up the good will. their relative contributions. It is decided by the
team members along with the manager.

2. Straight Commission Plan: MERITS OF GROUP INCENTIVE PLAN

- it is based on a percentage of sales. This plan
provides maximum incentive and is easy to • It builds team culture and improves team spirit
understand and calculate. through supporting group planning and problem
solving;
3. Combined Salary and Commission Plan: • Group cooperation enhances individual
- this plan includes a straight salary and a contributions;
commission. It is the most widely used sales • It motivates employees through broadening the
incentive plan. scope of their contributions;
• Group incentives reduces jealousies among
For example: the employees as their contributions and
if a sales person works under a 75/25 payments are similar.
combination. He/she gets 75% of the basic pay • Interpersonal competencies will improve
and pays 25% of the sales value as through cross-training.
commissions. The ratio of combination is
decided by the company based on certain LIMITATIONS OF GROUP INCENTIVES PLAN
objectives.
• There are chances that some individuals may
2. GROUP INCENTIVE PLANS feel that their contributions are higher than that
• These incentive plans have become popular of others;
when many tasks are executed by people as a • There may be pressure from inefficient fellow
group/teams. Group plans help companies in workers to reduce performance of efficient
cost reduction and total quality management. workers to hide their inefficiency;
• Payment formulas are usually difficult to how the business operates in terms of
understand. customers, prices, costs, etc. this helps
employees focus their efforts.
TYPES OF GROUP INCENTIVES PLAN
3. Competence
1. Team Compensation Plan -this plan demands a high level of competence
- These plans reward team members with at all levels.
incentive bonus when the performance
standards are met or exceeded. 4. Involvement System
- soliciting suggestions and evaluation to review
2. Gain-Sharing Plan performance to determine bonus.
- These organizational plans to increase
productivity or decrease labor cost and to share 5. Sharing of benefits
the gains obtained through higher productivity or
reduced wastes with the employees. 2. RUCKER PLAN:
- In contrast to Profit-sharing, where employees - under this plan, the financial incentive is based
may not be able to link their contribution to on the historic relationship between the total
profits, gain sharing focuses on savings such as earnings of hourly employees and the
reduced use of materials or less labor. production value that employees create.
- as the name suggests, employees share the -Both Scanlon and Rucker plan prove that any
gains obtained through savings. management expecting to gain the cooperation
of its employees in increasing productivity must
THREE (3) TYPES OF GAIN SHARING PLAN allow them to become involved psychologically
as well as financially in the organization.
1. SCANLON PLAN:
- it was developed by an Official of United Steel 3. IMPROSHARE
Workers Union named Joseph Scanlon in 1937, - in this plan, bonuses are based on the overall
- this plan using employee and management productivity of the team.
committees to gain cost reduction
improvements. 3. ORGANIZATIONAL LEVEL INCENTIVE
- the aim is to encourage improved employee PLANS:
productivity by sharing resulting financial gains
with employees. Organizational level incentive plans include
- the main thrust is that employees should offer all the employees irrespective of teams/groups.
ideas and suggestions to improve productivity
and in turn, be rewarded for their constructive • These incentives are based on the success of
efforts. the organizations as a whole over a period of
time, one year or above.
FIVE (5) FEATURES OF SCANLON PLAN • These plan aims to create a sense of
ownership by encouraging a philosophy of
1. The philosophy of cooperation: cooperation and team work among all the
- it assumes that managers and workers should members of the organization.
work together and avoid the attitudes of “us” and • Common organization plans are profit sharing,
“them” to develop a sense of ownership in the stock options, and employee stock ownership
company. plans.

2. Identity
-the company’s mission or purpose is clearly
explained and the employees must understand
4. INCENTIVES TO PROFESSIONAL
EMPLOYEES:
• Professional employees such as engineers,
scientists, doctors, etc., cannot advance beyond
a certain point of salary structure in some
organization unless they are willing to become
administrators. Unfortunately, when they
become administrators, their talents cannot be
utilized. Under these circumstances they can be
motivated through bonuses and merit increases.
• The executive pay package for professionals
basically consists of basic salary, short-term
incentive/bonuses, long-term incentives/stock
plans, benefits, perquisites or perks and golden
parachutes (guaranteed position).

The Best 23 Employee Incentive Programs for

the Modern Enterprise:
1. Customized Paid Vacation
2. Green Transport Service
3. On-site Entertainment
4. Unlimited Sick Leaves
5. Free Online Skill Development Courses
6. Free eLearning Program
7. One-on-One Mentorship
8. Fast Food Catering on Specific Weekdays
9. Free Healthy Snacks
10. Stationery and Equipment Personalization
11. Health and Wellness Programs
12. Club and Society Membership
13. Rest and Relaxation Rooms
14. Streaming Service Subscriptions
15. Department/Team Activities
16. Gamification of Tasks
17. Profit Sharing Among Employees
18. Working Remotely, Whenever (work from
home)
19. Elimination of Degree Requirements
20. Unlimited Medical Insurance Coverage
21. Vehicle Financing Assistance
22. Consumer Goods Financing Assistance
23. Student Loan Debt Assistance
 3. As a group, they tend to be more creative
MANAGEMENT INCENTIVES and imaginative than others.

4. They are usually both independent and

● The most important objectives of a self-conscious.
compensation package is to reward
efficient performance on the job 5. As a group, they tend to be idea- and
with commensurate pay for efforts thought-oriented rather than people-oriented
and ability and thus help motivate the
6. By and large, these professionals are
worker to higher levels of creativity
economically advanced to the point where
and productivity.
income is valued not only for its purchasing
● Moreover, Low productivity is one of
power but also for the status it confers and
the most serious problems facing in
the recognition it implies.
the country and studies showed the
frightening fact that this disease is 7. They are highly mobile.
prevalent in the vital organs of
companies- management. ● These characteristics help to explain
why intrinsic rewards are necessary
Management incentive is the practice of for managerial and professional
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offering incentives like pay, extra time employees and are valuable to them.
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off, or a gift to employees that meet certain ● They also emphasize the importance
benchmarks or perform specific behaviors. of developing a total compensation
package for the individual employee
CHARACTERISTICS OF PROFESSIONAL
or for each particular class or group
AND MANAGERIAL EMPLOYEES
of employees, as for example,
• The characteristics of professional and accountant, engineers, managers and
managerial employees are different from supervisors.
those of factory employees.
MANAGEMENT’S LOW PRODUCTIVITY
• Lee Danielson found that successful
• Management’s low productivity is often
engineers and scientists have certain
caused by the lack of understanding of
distinctive characteristics that apply to other
the relationship between performance
professionals and managerial employees.
and money. Moreover, managers often fail to
They are:
see that the only way a company can pay
1. They are highly intelligent. more is for productivity to increase.

2. They have an analytical frame of mind and • To gain productivity, it is necessary to

a preference for deductive (from general to motivate managers to pass on the benefits of
specific) reasoning. their ingenuity to the company.
• MONEY is still the primary motivation tool. • Job satisfaction
Regardless of how the term is used, whether
• Occupational and organizational choice.
incentive plan or incentive bonus. It is still
basic reward that counts. DESIGNING MANAGEMENT INCENTIVES

• Without rewards (money) or inadequacy of

• (Small Business Report, January 1982).
it, there is laziness and the nasty or hatred
States: The idea that a manager can increase
desire to work hard. Unfortunately, however,
productivity to such an extent that it
a considerable number of companies fail to
warrants being paid twice or even three times
fully utilize the power of money.
the previous year’s salary often requires a

• The concept of MONEY as a motivator is major change in thinking for top

management. What many companies
anchored on a theoretical base, that is,
overlook is that, in a well designed plan, a
managers who want more pay and who
substantial multiple of the manager’s bonus
believe making their departments more
ends up as a profit.
productive and cost-effective will result in
more pay, will work harder and better to get • One of the reasons why a number of
that pay.
companies do not adopt management

• Compensation experts continue to advise incentives plans is a practical one. The

productivity of an organization can’t increase
companies to structure their compensation
until managers have a full grasp of the true
plans for managers with an incentive plan as
meaning of what a good performance
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its basis. Such advise is made in the light of

actually is.
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present conditions today.

MANAGEMENT INCENTIVE PLANS

• Since executives and manager’s
performance is difficult to measure, most • On the basis of studies made, there are
companies have no systematic program with
strong evidences to show that there are
regard to compensation package for them.
logical connections between managerial pay
Rather, they make subjective determinations
and company performance. For instance:
influenced by the availability of executive
Those paid top management the highest
and managerial personnel that possess the
total payroll had increased profits far more
desired skills, bonus, profit-sharing, and
than those paying their executives and
stock option plans are now being practice
managers the smallest percentage
to, along with fringe benefits designed to
increase the real income while keeping Any company which seeks to make
taxable income at a minimum. incentive plans work must take into
account the following:
INFLUENCE OF REWARDS DECISIONS
1. Cost and Benefit Analysis - a company
• Job effort and performance. before venturing into such a plan must direct
its attention towards estimating the
• Attendance and retention.
additional earnings that would be realized
• Employee commitment to the organization. which then must subsequently be compared
with the costs of rewards, administration of
the plan, etc. Moreover, Intangible rewards point (never defined) “the man makes the
that a company is bound to receive should be job” and his rewards should not be limited by
ignore. a “classified” price tag.

2. Company Analysis - The company should - Normally the “sharing rate” is

take into account such as factors as current approximately 10 percent of the increase in
market share, sales growth, profit profits generated by the incentive plan.
improvement. Moreover, a review of sales for Obviously, the higher the sharing rate
the last past three-five years including costs percentage, the more profits that will be
and profits by product line must be consumed by the rewards.
undertaken analyzing cost/volume/profit
7. No-bonus zone - For purposes of stressing
relationships and determining how they are
emphasis on superior performance, no
affected by sales growth and cost reductions.
reward should be given for marginal
The risk and cost to the company if the
improvement. Thus, for performance that
program fails must also be considered.
does not reach a predetermined threshold, no
3. Participation - this plan must be clearly bonus is paid.
describe, that is, it is limited only to those
- The relationship between performance
managers who directly and significantly
levels, no-bonus zones and bonus ceilings
affect company performance. -in this plan, it
must be clearly defined and understood by
is generally important to provide separate
the manager.
incentive programs for different levels of
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management inasmuch as their efforts affect 8. Payout provisions - the matter of

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performance of the company in different

payment of rewards should also be clearly
ways.
spelled out. Receipt of incentive rewards on a

4. Plan Structure - in this plan, it must be deferred basis unless requested by managers
for tax purposes. Could defeat the very
simple, easy to understand and implement.
purpose for which the plan has been
Any plan that is complicated may render the
instituted. It may make managers
best intentions to nothing. Simplicity may be
lose-enthusiasm on their jobs instead of
judged on the ease of determining whether
exerting greater efforts toward increasing
managers themselves can easily calculate
levels of productivity.
their rewards on the basis of given
performance levels and bonuses. 9. Emphasis on long-term results - Every

5. Substantial rewards - the rewards offered incentive plan must be anchored on

long-term company growth and profitability
under this plan must be fairly substantial.
must be its sole basis.
Otherwise. Managers may not even give it a
thought. DEFERRED BENEFIT PAYMENTS

6. Sharing rate - the maximum amount that

Within recent years, large and small
any one manager can earn should be
businesses alike, are using deferred benefit
open-ended, but based upon a percentage of
payments. Such plans, are used by
the total profits that will be paid out. There
businesses in the United States designed:
are those who argue that above a certain
1. To attract and hold key executives and 6. Improved performance and
managers; 2. To provide them with sheltered productivity
investments; and 3. To ensure financial
Personal and Professional development
security
as total rewards:
Deferred plans were originally intended as a
• Trainings, career development, and
device for retirement planning, and this is still
performance management can constitute
the basic purpose of qualified plans.
valuable rewards for employees.
However, in the case of unqualified plans, the
primary purpose is one of tax avoidance for 1. Work Environment (Safety and
both current income and estate taxes.
Comfort)

- For retirement, hindi agad binibigay. 2. Job design

3. Recognition
TOTAL REWARDS PLAN 4. Work life balance
5. Autonomy
- Is a system of reward that goes beyond
6. Flexible schedules and work
compensation and benefits includes anything
arrangements
and everything the employee values and the
7. Relationship with other people
employer is willing and able to offer
8. Quality leadership
employees.
Advantages:
- Total rewards system is compressed of
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compensation of non-compensation • Employee retention

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- Focus more on environment • Employee performance

4 PHASES OF TOTAL REWARDS • Controllable expenses

COMPENSATION
Disadvantages:
1. Assessment
• Lag the market
2. Design
3. Execution • Self focus
4. Evaluation
• Appropriate mixture
BENEFITS OF TOTAL REWARDS
SIGNIFICANT FACTORS AFFECTING
1. Persuasive recruitment tool
COMPENSATION
2. Signalling that you’re a progressive
company • Compensable factors help employees help
3. Increasing employee engagement decide how much a job is worth by
without increasing costs identifying the most valuable elements of
4. Increased awareness of all the each position in your workplace: the factors
benefits the employer provide where you base compensation.
5. Higher retention rate
Example/s: Supply and Demand

• Skills, experience, and education - The compensation levels in the Philippines

by market demand and supply are Influenced
Companies must not only decide what
the demand for certain skills and the supply
factors are necessary for successful
of qualified candidates can Impact salary
performance in each job but also how to
levels.
reward employees according to these
elements. Demand for specific skills

• Generally, the more strengths an employee - Industries, with high demand for specific
relate to their performance, their pay should skills tend to offer higher compensation
reflect their value on the job.
For example, the technology sector often
Results: pays high salaries due to the demand for
technical expertise
• Appropriately creating pay structures and
setting pay rates is a big advantage for EXPERIENCE AND SENIORITY
companies in attracting and retaining
Experience
employees.

The Philippines, Compensation is often

• Competitive pay
influenced by an Individual's level of
• Performance experience. As employees gain more
:p

experience in their field, they are likely to

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• Budget control
receive higher salaries due to their increased

• Internal equity and integrity expertise and knowledge.

Seniority
• Legal protection

Seniority is another factor that can effect

FACTORS AFFECTING COMPENSATION
compensation. As employees progress in their
(EXTERNAL)
career and take more senior roles. they often
• Supply and demand for employee skills receive higher salaries to reflect their
Increased responsibilities and leadership
- Employee skills and education
positions.
- Level of education skills
LEVEL OF EDUCATION AND SKILLS
• Labor organization
Level of Education
• Competitors
Higher levels of education, such as a
• The economic factors
bachelor's or master degree, are often

• Cost of living associated with higher salaries.

• Legislative factor
Specific Skills THE LEGISLATIVE FACTORS

Having specialized skills, such as Minimum wage law

programming, data for analysis, or project
- Minimum wages laws in the Philippines set
management, can also lead to higher
the minimum amount that employers must
compensation.
pay their employees
Labor Organization
Labor regulations
- They play an essential role in ensuring
ln the Phil government various aspects of
employees get a fair wage. They
employment Including working hours,
contest with the employers for the
overtime pay, leaves and benefits
employees. Rights and wage revision.
- labor union - whosets the agreement Local ordinances - can also affect
of organization. compensation

Competitors FACTORS AFFECTING COMPENSATION

-Industries with high competition among (INTERNAL)

companies may offer higher compensation to
attract and retain top talent. • Company compensation policy

For instance, the finance and banking sector • Company affordability

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often offers Competitive salaries to attract

• The firm’s financial position
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skilled professionals.
• Worth of a job
THE ECONOMIC FACTORS
• Worth of an employee - It pertains to your
Inflation Rates
performance
- In the Philippines have been relatively
Company affordability
stable in recent years, averaging around 29%
- Business conglomerates and multinational
Economic Growth
corporations are examples of organizations
the philippines has experienced steady in that can afford to pay higher salaries than
economic growth in recent years, with GDP others because they generate bigger profits
Growth rates averaging around 6-7%
The Firm’s Financial Condition
Cost of Living
- Finding out a company's ability to pay
- Affects wage quite simply affect salaries is one of the benefits that financial
compensation because if a given location has statements offers to the employee
higher paces for goods and services
Productivity
providing a given level of utility. Workers will
require higher wages to work there. - A firm's productivity can have a significant
Impact on the compensation for its
employees. when a firm is more productive, it • No compensation related created
may generate more revenue information stored or data should be
developed and future planning and execution.
Worth of a Job
• The compensation policy and programmer
- Organizations base their pay level on the
should be reviewed and reviewed periodically
worth of the job. The wages and salaries tend
conformity with changing needs.
to be higher for the jobs involving the
exercise of brain power, responsibility based • You have to evaluate before implementation
jobs.
• Its must determine the external and internal
Worth of an Employee in compensation to retain and motivate our
employees
- Time rates are granted to all employees
irrespective of performance In such cases, It's a most that must determine the external
employees are rewarded for their more and Internal in compensation to retain and
physical presence in the job. motivate our employees

COMPENSATION PRINCIPLES THE ESSENTIAL ROLE OF JOB

DESCRIPTION IN COMPENSATION
● Principle of economics
● Principle of Living wage Job description
● Principle of Contribution
- provide a clear understanding of the
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● Principle of Competition
expectations and responsibilities associated
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● Principle of Change
with role
● Principle of Significant difference
● Principle of Status Symbolism - play a pivotal role in compensation planning

STEPS IN ADMINISTERING
- set of skills, qualifications, responsibilities
COMPENSATION
Essential Role of Job Description play in
• should be develop by taking into
COMPENSATION DESIGN
consideration of the view of employers, the
employees, the consumer and the community Job Evaluation

• Compensation policy on page policy should - job description provides the details needed
be clearly defined to ensure uniform & to access relative value of different job
consistent application.
- analyzing responsibilities, qualifications,
• The compensation plan should be nurturing and complexity of the position
with overall.
Market Benchmarking
• All wage & salary related decisions should
- detailed and well crafted job description
be checked against the standards in
allows organization to conduct benchmarking
advantage on the wage and salary policy.
to assess similar roles
Compensation Surveys 201 File - personal info of employees,
active files
- job descriptions are critical to accurate and
effective participation in compensation 202 File - inactive employees, who resigns

Internal Equity HOW TO WRITE JOB DESCRIPTION?

- job description helps establish internal - can be created using various methods
equity by ensuring fair and consistent
including;
compensation
1. Observation
Job Grading and Salary Structure
2. Interviews with employees and supervisors
- good job description provides the necessary
information to develop job grading systems 3. Reviewing existing Job Description
and salary structures
CONTENTS OF JOB DESCRIPTION
Performance Based Compensation
● Job Title - descriptive but generic enough
- job description serves as a foundation for for recruitment purposes, be specific
setting performance expectations
● Job Summary - a birds eye view of the
- enable organizations to define key position
performance indicator
● Duties - day to day adhoc (additional
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tasks)
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Compliance

- job description helps organization ensures ● Qualifications - experience,

compliance with laws and regulations related education/certification skills
to compensation, such as minimum wage
● Relationships - where the role falls in the
laws
organisational hierarchy
N U T S H E L L - Job description provide
● Salary and Benefits - salary range and
the foundation for determining compensation
benefits and perks provided
by offering a baseline for a assessment of a
rule in compensation ● Additional Statements - EEO, off win
employment, reasonable accommodation
Who should write JOB DESCRIPTION?
2 Components of Sub Job Description
- Job Analyst from HR
● The nature of work involved
- Incumbent in Job/team members
● The type of worker that appear best titled
- Supervisor of Job Holder
JOB SPECIFICATION - termed “JobSpec
Note: It is important to be unbiased in your
job descriptions and review them annually