see also: Slides
compensation.
refer to all forms of financial returns and tangible services and benefits receive as part of an employment relationship
- societal
- pay and benefits as measure of justice
- job losses or gains in a country is a function of labor costs
- stockholders
- ESA: employment options plan and stock purchase plan, ISO
- executive pays: VPs, higher up.
- performance measures
- managers
- major expense that must be managed
- major determinant of employee attitudes and behaviours
- employees
- financial freedom
- exchange of good
- incentive to work a job, and have a reward for having done so.
Merit payment:
Total Rewards:
RRSP: 401k
Health spending account:
employment security: union membership
Social capital
Employee value proposition
Psychological safety: without having retaliation and being safe at work environment.
total reward.
total compensation
- include cash payments (IA, CPP)
Cash compensation:
- Base pay: Job evaluation
- merit increases are increments
- COLA (cost of living adjustment)
- incentives (bonuses)
Benefits
- health insurance
- pension: retirement and saving
- allowances
relational returns
Non-financial returns that substantially impact employee behaviour, such as employment security and learning and developmental opportunities
- psychological returns
- recognition and status
pay model.
graph LR
SP{{Strategic polcies}} --> T{{Techniques}} --> SO{{Strategic objectives}}
collective bargaining
- objectives
- policies that form the foundation of compensation
- techniques that make up compensation system.
internal alignment
- comparisons among jobs and skill levels within organization
- pertains pay rates both for employees
- Pay relationship affect compensations objectives
external competitiveness
- pay comparisons with competitors externally
- market driven
- objectives:
- ensure pay is sufficient to attract
- control labor cost to ensure competitive pricing of product.
employee contributions
- how employees are rewarded
- bases for performance-based evaluations, perceive pay as fair.
management
- right people get the right pay for achieving the right objectives the right way.
pay techniques
- four basic policies
- tools and mechanism that are used to achieve objectives.
Gender inequality article