0% found this document useful (0 votes)
57 views90 pages

4.1 Student Total Rewards PDF

The document discusses total rewards and compensation, including both direct and indirect compensation. It defines total compensation and its components, such as fixed pay, variable pay, benefits, and services offered to employees. The document also discusses factors that affect compensation, both external factors like the labor market and economic conditions, and internal factors like the company's business strategy and ability to pay.

Uploaded by

Lena Alkharoubi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
57 views90 pages

4.1 Student Total Rewards PDF

The document discusses total rewards and compensation, including both direct and indirect compensation. It defines total compensation and its components, such as fixed pay, variable pay, benefits, and services offered to employees. The document also discusses factors that affect compensation, both external factors like the labor market and economic conditions, and internal factors like the company's business strategy and ability to pay.

Uploaded by

Lena Alkharoubi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 90

HRMG 1001

Principles of Human Resources


Management
CLO 4
Discuss HR functions such as: total rewards,
metrics, international HRM, and occupational
health and safety.
CLO 4
4.1 Understand the impact of total rewards on
employee retention
Your Pay?
What do you deserve as Pay for your first career job? Why?

What do you want your pay to be based on?


Why does
Compensation/Pay
matter?
To employers?
To employees?
Compensation
• Cash and non-cash rewards employees receive in exchange for their work
• Good compensation:
• Employees more likely to be job satisfied, motivated, and contribute to company objectives
• (Perceived) Bad compensation:
• Performance, motivation, and satisfaction may decline dramatically
• Turnover (leaving their job) may occur
• Poor employer reputation
• Recruitment efforts will be negatively impacted
• Competitive advantage is sacrificed
Total Compensation
DIRECT COMPENSATION
- Fixed Pay (Salary/Wages) based on critical job
factors
- Variable Pay (Pay for Performance) this is
linked to productivity or performance

INDIRECT COMPENSATION
- Benefits and services offered to employees.
- Not directly related to performance
- It is becoming the largest part of total
compensation
- Includes health insurance, paid vacation, gym
membership
Organizational Purposes for Compensation

Attract Employees: Compensation can be used as an effective tool to


attract the employees best suited for the organization’s needs & strategy.

Retain Employees: Compensation is a strategic tool to retain the best


employees of the organization.

Motivate Employees: A well-designed compensation package can be


4.1.1
an important motivator to employees in an organization.
Total Rewards for Work
Total Rewards
(aka Total Compensation)

Total Compensation
Relational Rewards

Benefits
Learning
Opportunities
Recognition
Cash Compensation & Status
Life, Allowances
Long-term Health, and Employment Challenging
Incentives Disability Security Work
Base Merit/Cost
Insurance Work/Life
of Living Short-term Programs
Incentives
Which ones are Monetary?
Which ones are Non-Monetary
Total Rewards
Total Rewards for Work
Total Rewards
( Total Compensation)

Total Compensation
Relational Rewards
(Indirect)
Benefits
(Indirect) Learning
Opportunities
Cash Compensation Recognition
(Direct) & Status
Long-term Life, Allowances
Incentives Health, and Employment Challenging
Security Work
Base Merit/Cost (Variable) Disability
Insurance Work/Life
(Fixed) of Living Short-term Programs
Incentives
(Variable)
(Variable)
Factors affecting compensation
Labour
Market
1. External Factors: Conditions

Economic Government
Conditions Control

External
Factors

Industry Wage
Globalization:
Level

Cost of Living

4.1.2
Factors affecting compensation
Job’s Worth
2. Internal Factors:

Company’s
Business
Internal Ability to Pay
Strategy Factors

Productivity

4.1.2
Basic Considerations in Determining Compensation
1. Legal Considerations in Compensation
• i.e. minimum wages, Qatar Labor Law

2. Internal Compensation Policies


• i.e. the company will pay “at or above market rate”

3. Equity and Its Impact on Pay Rates


• Internal equity: employees perceive their pay as fair given the pay
rates of others in the organization

• External equity: employees perceive their pay as being fair given


the pay rates in other organizations.

• Individual equity: employees perceive their pay as fair compared


4.1.3 to others doing the same or similar work
11-13
GOOGLE & TOTAL REWARDS!
Total Compensation
Total Compensation includes all forms of pay
going to employees and arising from their
employment. It includes…

1. Direct Compensation (wages, salaries,


incentives, commissions, and bonuses)
2. Indirect Compensation (Benefits)
Total Compensation
DIRECT COMPENSATION
- Fixed Pay (Salary/Wages) based on critical job
factors
- Variable Pay (Pay for Performance) this is
linked to productivity or performance

INDIRECT COMPENSATION
- Benefits and services offered to employees.
- Not directly related to performance
- It is becoming the largest part of total
compensation
- Includes health insurance, paid vacation, gym
membership
First there is….
1. Fixed pay
• Compensation independent of performance level
(based on the job itself) and includes :
• Base pay (salary / wages)
• Use Job evaluation to determine pay
Steps involved in creating a pay structure

Stage 1: • Job evaluation (the job’s internal worth)

Stage 2: • Conduct wage/salary survey (the job’s external


worth)

• Combine job evaluation and salary survey to


Stage 3:
determine pay
4.1.5
Stage 1: Job Evaluation
• Job Evaluation
• A systematic comparison to determine relative worth of jobs within a firm.
• Evaluate jobs based on skill, effort, responsibilities and working
conditions needed for the job (Value of the job)
• These are called Compensable Factors
• Job evaluation is concerned with the content of the job (not the person in
the job)

only key jobs are to be compared and analysed

4.1.4
Stage 1: Job Evaluation
• Key Jobs (Benchmark Jobs)
• Job that is critical to the firm’s operations or commonly
found in other organizations – easier to compare jobs to
other jobs outside of the company
• Non Key Jobs
• Job that is unique to an organization and not easily
compared to other companies

4.1.4
Job Evaluation Methods

A. Classification/Grading Method

B. Point Method

4.1.4
A. Classification/Grading Method
• Widely used, simple job evaluation method
• Categorize jobs into groups
• These jobs in groups give the same value to the company
• This method groups jobs into classes or grades using the job descriptions or compensable factors
• Classes contain similar jobs
• Grades contain jobs that are equally difficult (challenging) but otherwise are different
jobs

• Grouping jobs into classes/grades


• Each class and grade is paid the same
4.1.4
A. Classification/Grading Method
• To Develop:
• Write a classification or grade summary/description
• Place jobs into a classification or grade according to the
summary/description
or
• Write the compensable factors
• Place jobs in groups depending on their compensable factor
requirements
• Examples of Compensable Factors are skills, effort, responsibility, and
working conditions
4.1.4
Empire Machine Shop
Job Classification System

Job Grade
Job Classification or Grading
Directions: Match job description to grades as described below:
Standard Description

I Work is simple and highly repetitive, done under close supervision, requiring minimal training and little responsibility
or initiative
Example: janitor, file clerk
II Work is simple and highly repetitive, done under close supervision, requiring some training or skill. Employee is
expected to assume responsibility or exhibit initiative on occasion.
Example: machine cleaner, administrative assistant

III Work is simple with little variation, done under general supervision. Training or skill required. Employee has
minimum responsibilities and must take some initiative to perform satisfactorily.
Example: parts expediter, machine oiler, admin assistant II

IV Work is moderately complex, with some variation, done under general supervision. High level of skill required.
Employee is responsible for equipment or safety; regularly exhibits initiative
Example: machine operator I, tool and die apprentice

V Work is complex, varied, done under general supervision. Advanced skill level required. Employee is responsible for
equipment and safety; shows high degree of initiative
Example: machine operator II, tool and die specialist
PROS AND CONS OF THE CLASSIFICATION/GRADING METHOD

Pros
• Less subjective then the ranking Method
• Simple to understand and use
• Employees accept this method

Cons
• Requirements of jobs not considered
• Still maybe subjective
• May oversimplify difference between different jobs

4.1.4
Job Evaluation Methods

A. Classification/Grading Method

B. Point Method

4.1.4
11-27
B. Point Method Overview

• A job evaluation method in which a number


of compensable factors are identified and
then a value/weight (point system) is applied
to the factors that are present on the job.

4.1.4
11-28
B. Point Method
• Assigns points to each factor of each job (determines the level or degree
found in the job):
• Responsibility
• Skill
• Effort
• Working Conditions
• Most common type of job evaluation used for evaluating compensation
4.1.4
• Many standardized point plans available
Point Method of Job Evaluation
• Rate:
• Jobs are rated for each compensable factor
• The rater assigns each factor a certain number of points (the level of
degree)
• Determine:
• Give more points when that factor is more important to the job or the
job requires a high level of that factor
• Total:
• Then total all the factors to arrive at an overall evaluation of the job

4.1.4
Point System Matrix: Job Evaluation
Critical Factors Levels or Degrees Factor Points
1. Responsibility (weight 40%) 400
Subfactors:
a. Safety of others 20 80 140 200
b. Equipment & materials 8 24 56 80
c. Assisting trainees 8 24 56 80
d. Product/service quality 4 16 28 40

2. Skill (weight 30%) 300


Subfactors:
a. Experience 18 72 126 180
b. Education/training 12 48 84 120
3. Effort (weight 20%) 200
Subfactors:
a. Physical 8 32 56 80
b. Mental 12 48 84 120
4. Working Conditions (weight 10%) 100
Subfactors:
a. Unpleasant conditions 3 12 21 30
b. Hazards 7 28 49 70
Total 1000
Points
Compensable Factors
Compensable Factor: A compensable factor is an element which is a part of several
jobs that are used in studying the behavior of employees.

Sub-factors are used to clarify the specific meaning of each factor

Compensable Factor Sub-Factors


Skill Education, experience, interpersonal skills

Effort Physical effort


Mental effort
Responsibility Supervision of others
Budget responsibility
Working conditions Physical environment
Travel
Steps involved in creating a pay structure

Stage 1: • Job evaluation (the job’s internal worth)

Stage 2: • Conduct wage/salary survey (the job’s


external worth)

• Combine job evaluation and salary survey to


Stage 3:
determine pay
4.1.5
11-33
Stage 2: Conduct a Wage/Salary Survey
Wage/Salary Survey
• a survey aimed at determining prevailing wage rates in the
marketplace
• a good salary survey provides specific wage rates for
comparable jobs
• formal written questionnaire surveys are the most
comprehensive
https://www.youtube.com/watch?v=FCvkC3wOQV4
Examples of Wage/Salary Surveys
Steps involved in creating a pay structure

Stage 1: • Job evaluation (the job’s internal worth)

Stage 2: • Conduct wage/salary survey (the job’s


external worth)

• Combine job evaluation and salary survey


Stage 3:
to determine pay
4.1.5
11-36
Stage 3: Combine the Job Evaluation & Salary Survey Information to
Determine Pay for Jobs
Use market survey data solely

• Emphasizes external information solely and base pay on what others in the
industry are paying. Covers as many key jobs as possible. Non-key jobs may
require a different process.

Establish a pay policy line

• Combination of external and internal job evaluation and market data. Derive
pay line using a statistical procedure.

Use internal job worth and pay ranges

• Use the internal worth of the jobs and add pay ranges. Allows employer to
have a pay range for min, mid and max pay options – depending on the job.
Keep in mind…Employers have a choice

• Pay is a powerful tool for both meeting organizational goals and to motivate
employees
• Pay structure should be seen as fair (equity) but not cost more than the benefit it
brings
• So decide:
• Pay based solely on the internal worth of the job or the employee
• Pay according to the market, the competitors
• Pay above market, more than competitors
Pay for Knowledge:
1. Skill-Based pay
Skill-based pay (manufacturing
employees)
• Pay structures that set pay according
to the employees’ level of skill or
knowledge and what they are capable
of doing
• Empowers employees to build their
knowledge
• Very innovative approach
Pay for Knowledge:
2. Competency-Based pay
• Competencies: An individual’s knowledge, skills
and behaviors that are important to successful
individual or corporate performance
• The competencies are related to the job and results
in superior job performance
• Mainly used for managers
Pay for Knowledge:
3. Pay for Managerial and Professional Jobs
May Include: • Short-term incentives
• Salary (market pricing) • Long-term incentives
• Benefits • Customized rewards
Compensating Professional Employees
i.e. engineers, scientists, accountants, lawyers
• Some compensable factors are not easily measured: i.e.:
creativity, problem solving
• Difficult to measure economic impact to organization
• Market pricing approach commonly used – which means pay is
usually based on what the market is paying and not the
internal worth of the job
Men should get paid more then
women.
Do you agree or disagree with this statement?

What about the additional responsibilities men have in Qatar – shouldn’t they make more money?
Pay Equity
• Pay Equity is equal pay for work of equal value.
Equal Pay for Equal Work addresses situations
in which men and women do the same work.

• Pay Equity requires employers to pay female


type jobs at least the same as male type jobs, if
they are of comparable value.

• Part 9 of Labour Law No 14 of 2004


• Equal Employment Opportunity
• Prohibits gender, race-based and diversity-
related differences in employment outcomes
4.1.7
such as pay.
Equal Pay is one thing
Equal pay means that all workers have the right to
receive equal remuneration for work of equal value for
the same or similar job.
What is Pay Equity?
Total Compensation
DIRECT COMPENSATION
- Fixed Pay (Salary/Wages) based on critical job
factors
- Variable Pay (Pay for Performance) this is
linked to productivity or performance

INDIRECT COMPENSATION
- Benefits and services offered to employees.
- Not directly related to performance
- It is becoming the largest part of total
compensation
- Includes health insurance, paid vacation, gym
membership
Then there is also…
2. Pay for Performance (Variable pay)
Variable pay is any plan that links pay to productivity
or profitability and may be in addition to base pay. It’s
an incentive to perform. It includes:

2. financial 2. Pay for 2. Other variable


incentives professionals compensation
(bonuses) (merit pay) (commissions)

4.1.6
What is Pay for Performance?
Also known as Variable Pay
and Incentive Pay

Pay to differentiate between


employees based on their
performance.

Recognize employee
organizational contributions with
pay.
Types of Pay for Performance Plans
These incentives have to be earned and re-earned

• A. Pay for Individual Performance

• Piecework, Standard hour, Merit Text


pay, Individual Bonuses, Professional
Incentives, Sales Commissions

• B. Pay for Organizational Performance

• Profit Sharing, Stock ownership

• C. Employee Recognition Rewards


4.1.6
1. piecework rates: based on amount produced, rates are based on the produced
2. standard hour plans: within a certain hour limit of things produced, rated are based on the hour (hourly rate)
3. merit pay:
4. individual bonus:
5. incentives for prof. employees:
6. sales commissions:
A. Pay for Individual Performance

• Organizations may reward individual performance with a variety of pay


incentives:
1. Piecework rates
2. Standard hour plans
3. Merit pay
4. Individual bonuses
5. Incentives for Professional Employees
6. Sales commissions
4.1.6
A.1 Piecework
• Piecework is the oldest and most commonly used incentive plan

• An incentive to work efficiently

• Based on a production standard called – piecework


• Based on the amount they produce

• Good for standardized jobs with output that is easy to


measure
4.1.6
• Does not reward quality of work or teamwork
A1.Piecework: Straight Piecework Plan
• a strict set payment for each piece produced or processed in a factory or shop
regardless of output quality
• Example:
• Tree planter: for every tree planted, worker receives a fixed amount
• Tailoring factory – each dress stitched, worker gets a fixed amount

The more trees planted or dresses stitched, the more money they get

4.1.6
A. Pay for Individual
Performance

• Organizations may reward individual performance with a variety of pay


incentives:
1. Piecework rates
2. Standard hour plans
3. Merit pay
4. Individual bonuses
5. Incentives for Professional Employees
6. Sales commissions
4.1.6
A2. Standard Hour Plans
Worker is paid a basic hourly rate but is also paid an
extra percentage of his rate for production that exceeds
the standard set per hour or per day.

Similar to piecework payment but based anything above


is paid based on a percent and added on to hourly rate.

Example:
Shoemaker gets 30 Riyals per hour and must make 3 pairs of
shoes in 3 hours

If worker produces 4 pairs of shoes in 3 hours, he will


4.1.6 receive 90 Riyals for three hours PLUS 25 extra Riyals for the
extra pair of shoes. Total 115 Riyals.
Piecework & Standard Hour Plans:
Advantages & Disadvantages

advantages: • Simple to calculate • Some employers

disadvantages:
• Easy to understand raise standards
• Appears equitable randomly
• Directly tied to • Difficult to adjust or
performance change hourly rates
• Resistance to revising
the standard
• Quality may be
compromised

4.1.6
A. Pay for Individual Performance

• Organizations may reward individual performance with a variety of pay


incentives:
1. Piecework rates
2. Standard hour plans
3. Merit pay
4. Individual bonuses
5. Incentives for Professional Employees
6. Sales commissions
4.1.6
A3. Incentive for Employees – Merit Pay

• Merit pay is any salary increase the firm gives to an


employee based on individual performance such as the
performance appraisal.
• Merit plan effectiveness depends on truly differentiating
among employees.
• Rewarding high performers
• Two popular types of merit pay plans are:
1. One plan gives a merit increase as a lump sum once a year and
does not make the increase a part of the employee’s salary.
4.1.6
2. The other plan ties the merit increase to the individual’s salary
and it continues as long as the employee stays with the company.
A4. Performance Bonuses

Performance Bonuses
Reward performance but…
• Not rolled into base pay
• May be a one-time reward
• May be used to achieve a very specific goal or target
• May be linked to targets such as sales or production numbers
• Always tied to performance that makes a difference to the organization’s
overall performance
• Employee must re-earn bonus during each period
4.1.6
A. Pay for Individual Performance

• Organizations may reward individual performance with a variety of pay


incentives:
1. Piecework rates
2. Standard hour plans
3. Merit pay
4. Individual bonuses
5. Incentives for Professional Employees
6. Sales commissions
4.1.6
A5. Incentives for Professional Employees

Lawyers, doctors, economists, and engineers –


“Thinkers” or “Knowledge workers” – have prolonged
formal study
• Money not as much a motivator – already have high
salaries
• Often driven by high quality work and peer
recognition
• Conferences, tuition fees or courses, better
equipment, more exciting projects or work, help with
4.1.6 publications in journals, supportive management style
Pay for Individual Performance

• Organizations may reward individual performance with a variety of pay


incentives:
1. Piecework rates
2. Standard hour plans
3. Merit pay
4. Individual bonuses
5. Incentives for Professional Employees
6. Sales commissions
4.1.6
A6. Sales Commissions

• Incentive pay calculated as a percentage of sales


• Some earn commission in addition to base salary
• Some work on straight commission plan with no salary
• Some earn no commissions at all

4.1.6
A6. Incentives for Salespeople
1. Salary plan
• fixed salary

2. Commission plan
• pay in direct proportion to sales
generated

3. Combination plan
• base salary plus commission
4.1.6
A6. Incentives for Salespeople: Salary Plan

• works for prospecting • high performance not


advantages:

disadvantages:
and account servicing recognized/rewarded
• sales people know • salary usually based
their income in on seniority,
advance demotivating for high
• easy to reassign sales performing sales
people people
• enhances long term
perspective

4.1.6
A6. Incentives for Salespeople: Commission Plan

• greatest incentive, • focus on sales, not

disadvantages:
advantages:
attracts high customer
performing sales relationship
people • variances in income
• sales costs among sales people
proportion to sales • sales people may
level neglect other duties
• easy to
understand/compute
4.1.6
A6. Incentives for Salespeople: Combination Plan

• Earnings • often more


advantages:

disadvantages:
minimum complex to
• allows calculate
compensation
for
administrative
work
4.1.6
B.1 Pay for Performance
Organization-Wide Incentive Plans

B1 Profit-sharing plans
• Payments are based on a measure of organization performance (profits)
• Employees share in the company’s profits
• A certain % of profits distributed to employees
• Employees think like owners!
• Easy to understand but employees have more of an indirect control of
the success of the company profits, so not as motivational as other
simple and direct pay for performance strategies.

4.1.6
B.2 Pay for Performance
Organization-Wide Incentive Plans
B2. Employee share purchase/stock ownership plan
• Employees receive or have the option to buy stocks in the company
• Encourages employees to focus on the success of the organization as a whole
• Sense of commitment from employees – they are part owner in the company, but
shares can go down in value and are not controlled by the employees

4.1.6
C. Common Recognition Rewards

4.1.6,
4.1.9
Total Compensation
DIRECT COMPENSATION
- Fixed Pay (Salary/Wages) based on critical job
factors
- Variable Pay (Pay for Performance) this is
linked to productivity or performance

INDIRECT COMPENSATION
- Benefits and services offered to employees.
- Not directly related to performance
- It is becoming the largest part of total
compensation
- Includes health insurance, paid vacation, gym
membership
Indirect Compensation Objectives
Why Companies Do it:

Societal Organizational Employee

• To solve social • Reduce fatigue • Lower costs and


problems and provide availability
security for wage • Improve relations with
earners employees • Protection from
rising costs
• Financial security • Meet personal needs
against illness, of workers • Obtain benefits &
disability and services
• Help recruitment and
retirement reduce turnover

4.1.9
Goal: Attract, Retain and Motivate
Overview of Employee Benefits

• Compensations to employees in forms other than cash


• Help attract, retain, and motivate employees
• Help employers tailor their compensation to the kinds of
employees they need
• Employees have come to expect that benefits will help
them maintain economic security
• Benefits impose significant costs for the employer but is a
cost savings to the employee
Overview of Employee Benefits

Employee Benefits continued


• Certain benefits are required by law
• Employers can get volume discounts on insurance plans
• Creative benefits packages make companies competitive
Indirect Compensation
Employee Benefits – Two Types
A. Voluntary – Employer Sponsored Benefits

B. Involuntary – Government Sponsored Benefits


(Mandatory in Qatar)

4.1.8
A. Voluntary Benefits
Employer Sponsored Benefits
3. Short Term Disability/ Sick
1. Group Insurance 2. Health Care and Medical
Leave

5. Retirement 6. Employee Services


4. Long Term Disability

4.1.8 • Job related – allowances


• Personal Services (EAPs)
• Executive Perquisites (Perks)
Voluntary Employer-Sponsored Benefits
1. Group Insurance
Life insurance can be provided at lower rates to
all employees regardless of health or physical
condition;
Employer fully funds (2 X wage/salary)

Accidental
Death/Dismemberment (AD&D)
– accidental death or loss of limb

Critical illness insurance –


insurance that is paid out if you get a
life threatening illness.
Voluntary Employer-Sponsored Benefits
2. Supplementary Health Care/ Medical Insurance

Provides protection against medical costs Deductible: amount of health


which arise from off-the-job expenses that an employee
accidents/illnesses MUST pay before insurance
benefits will be paid
•For example: drugs, private hospital rooms,
vision care, medical supplies, ambulance, dental

Co-insurance: the percentage of


expenses (in excess of the
deductible that are paid for by the
insurance plan)
Voluntary Employer-Sponsored Benefits
3. Short Term Disability/Sick Leave Plans:
Provides income to employees when absent due to non-work
related injury or illness

Requires medical certificate

Usually covered by insurance company

Usually provides a sick leave plan

Provides income (salary) for a few days

Usually a specified number of sick days per year

** For information Review : Article 82, Labour Law 14


Voluntary Employer-Sponsored Benefits
4. Long Term Disability (LTD)

• Begins after short term


disability or sick leave is
finished
• Provides between 50-75%
of base wage/salary
Disability Management

• Disability Management: a proactive


employer-centered process that
coordinates activities of the employer,
insurance company, and health care
provider in an effort to minimize the
impact of injury, disability and disease
in a worker’s capacity to successfully
perform his/her job.
5. Retirement - Pension Plans

Categories of Pension Plans


• Defined Benefits Plan
• Guarantees a specified amount of retirement income usually based
on years of service and salary (formula). Benefits are defined ahead
of time. Employer assumes all of the risk as they make all of
the contributions.

• Defined Contribution Plan


• Allows employers and employees to contribute and invest funds over
time to save for retirement. Employee assumes all of the risk.
Employers match what the employee contributes
Pension Plans - Qatar

Qatar government employees receive


a pension after 15 years of service for
Qatari citizens. Other employers may
offer a voluntary pension plan in
Qatar.
Voluntary Employer-Sponsored Benefits
6. Employee Services: A. Job-Related Services

❖Subsidized employee transportation


❖Allowances for housing
❖Family-friendly benefits
❖ Family leave
❖ Subsidized childcare
❖ Eldercare
❖ Educational subsidies
Voluntary Employer-Sponsored Benefits
6. Employee Services: B. Personal Services

Some companies provide personal services that most


employees need at one time or another

• Counselling
• Employee Assistance Program
• Social and recreational opportunities: company-sponsored athletic
events, and celebrations
Voluntary Employer-Sponsored Benefits
6. Employee Services: C. Executive Perquisites (Perks)

loans
salary
concierge guarantees
service (golden
parachutes)

company cars,
financial
chauffeured
counselling
limousines

outplacement relocation
assistance benefits
B. Involuntary Benefits:
Government Sponsored Benefits
1. Working hours, breaks, overtime
2. Day of rest
3. Requirement to post
4. Holidays (paid leave)
5. Vacation (annual leave)
6. Other leaves (sick leave, Haj leave,
maternity/parental leave, bereavement leave)
7. End of service contract (layoffs, lieu of notice)
4.1.8
Current Trends in Compensation
• Maternity Leave
• Company Leased Accommodation
• Recreation, ATM cards and Concierge
• Corporate Credit Card
• Cellular Phone / Laptop
• Loans
• Wedding day / birthday gift
• Employee referral
4.1.10
Lab Activity

You might also like