Comp Admin
COMPENSATION ADMINISTRATION – TEXT BOOK Chapter 1-6 Summary
CHAPTER 1
Society some people see pay as a measure of justice (pay equity and gender gap)
For managers pay is a major expense, and it is used to influence employees behaviours and performance.
Employees, see pay as a trade-off for the work they put in, or reward for a job well done. They invest time training education and expect pay for work as the outcome.
"Compensation": to counter balance. To offset. To make up for. It combines entitlement, return and reward. In text book, compensation is: all forms of financial returns and tangible services and benefits that employees receive as part of an employment relationship.
Relational return: psychological return employees believe they receive in workplace Total rewards: all rewards including cash compensation, benefits and relational returns.
Wage: hourly pay
Salary: annual or monthly rate.
Merit increase: increase to base pay in recognition of past work behaviour.
Cost of living adjustment: percent increment to base pay provided to all ployees regardless of performance.
Incentives: variable pay. One time payments for performance.
Long term incentive: focus employees on multi year results. Ex. Stock ownership or stock buying.
Life health and disability Insurance and work life programs are also part of compensation.
Allowance: compensation to provide for items that are in short supply. Ex. Transportation or housing.
Employee engagement: level of connection and employee feels to employer that brings out full effort.
Pay model 1.2
Strategic comp objectives - efficiency can be stated more specifically (improve quality and performance, delight customers, control labour costs).
Procedural fairness: fairness of the decision process.
Compliance: conforming to federal provincial a d territorial compensation laws.
Ethics: follow values and codes of conduct.
4 policy choices
1. Internal alignment: pay comparisons
CHAPTER 1
Society some people see pay as a measure of justice (pay equity and gender gap)
For managers pay is a major expense, and it is used to influence employees behaviours and performance.
Employees, see pay as a trade-off for the work they put in, or reward for a job well done. They invest time training education and expect pay for work as the outcome.
"Compensation": to counter balance. To offset. To make up for. It combines entitlement, return and reward. In text book, compensation is: all forms of financial returns and tangible services and benefits that employees receive as part of an employment relationship.
Relational return: psychological return employees believe they receive in workplace Total rewards: all rewards including cash compensation, benefits and relational returns.
Wage: hourly pay
Salary: annual or monthly rate.
Merit increase: increase to base pay in recognition of past work behaviour.
Cost of living adjustment: percent increment to base pay provided to all ployees regardless of performance.
Incentives: variable pay. One time payments for performance.
Long term incentive: focus employees on multi year results. Ex. Stock ownership or stock buying.
Life health and disability Insurance and work life programs are also part of compensation.
Allowance: compensation to provide for items that are in short supply. Ex. Transportation or housing.
Employee engagement: level of connection and employee feels to employer that brings out full effort.
Pay model 1.2
Strategic comp objectives - efficiency can be stated more specifically (improve quality and performance, delight customers, control labour costs).
Procedural fairness: fairness of the decision process.
Compliance: conforming to federal provincial a d territorial compensation laws.
Ethics: follow values and codes of conduct.
4 policy choices
1. Internal alignment: pay comparisons