Reward Management
Chapter 8: Reward Management
I. DEFINITIONS
Wages • A wage is the payment made to manual workers and is usually expressed as a rate per hour.
• In Hong Kong, “wage’, nowadays known as “Relevant Income”, includes all remuneration, allowances, tips, overtime pay, hardship, per-diem allowance, etc. capable of being expressed in terms of money, payable to an employee in respect of work done.
Salaries • A salary is a fixed periodical payment to a non-manual employee.
• In Hong Kong, it is expressed either in monthly or annual terms, implying a more stable employment relationship than that of wage earners. Salaried workers are usually referred to as ‘staff’.
Employee Benefits and Services • Those are offered by an organization to its employees in order to allow them to work without worrying about other practical problems.
• Employee benefits include legally required payments (e.g. MPF, Employees’ Compensation Insurance, welfare plans and paid time-off, i.e annual leave, sick leave, maternity leave and paternity leave).
Total Reward Concept • A total rewards program includes all the methods (cash payments, e.g. salaries, commissions, other incentives, equity, bonus, etc.; and non-cash benefits, e.g. medical and other employee protection insurance schemes, free tranportation, free meal, birthday leave, education sponsorship, claim on mobile phone expenses, etc.) used by employers to pay employees for the work they provided for the organization.
• An effective total rewards package includes a variety of components that help attract, retain and motivate employees who have skills needed by the organization.
II. WAGES STRUCTURES
A. Wages Structures
• The foundation of a manual worker’s earnings is his or her basic time wage, which is subject to supply and demand in the labour market. The worker is paid by hourly rate and can be fined for lateness.
• In addition to the basic rate, the worker
I. DEFINITIONS
Wages • A wage is the payment made to manual workers and is usually expressed as a rate per hour.
• In Hong Kong, “wage’, nowadays known as “Relevant Income”, includes all remuneration, allowances, tips, overtime pay, hardship, per-diem allowance, etc. capable of being expressed in terms of money, payable to an employee in respect of work done.
Salaries • A salary is a fixed periodical payment to a non-manual employee.
• In Hong Kong, it is expressed either in monthly or annual terms, implying a more stable employment relationship than that of wage earners. Salaried workers are usually referred to as ‘staff’.
Employee Benefits and Services • Those are offered by an organization to its employees in order to allow them to work without worrying about other practical problems.
• Employee benefits include legally required payments (e.g. MPF, Employees’ Compensation Insurance, welfare plans and paid time-off, i.e annual leave, sick leave, maternity leave and paternity leave).
Total Reward Concept • A total rewards program includes all the methods (cash payments, e.g. salaries, commissions, other incentives, equity, bonus, etc.; and non-cash benefits, e.g. medical and other employee protection insurance schemes, free tranportation, free meal, birthday leave, education sponsorship, claim on mobile phone expenses, etc.) used by employers to pay employees for the work they provided for the organization.
• An effective total rewards package includes a variety of components that help attract, retain and motivate employees who have skills needed by the organization.
II. WAGES STRUCTURES
A. Wages Structures
• The foundation of a manual worker’s earnings is his or her basic time wage, which is subject to supply and demand in the labour market. The worker is paid by hourly rate and can be fined for lateness.
• In addition to the basic rate, the worker