人力资源管理 HRM chapter11 Establishing Strategic Pay Plans.ppt

Establishing Strategic Pay Plans Establishing Strategic Pay Plans After studying this chapter, you should be able to: List the basic factors in determining pay rates. Explain in detail how to establish pay rates. Explain how to price managerial and professional jobs. Discuss current trends in compensation. Establishing Strategic Pay Plans Determining Pay Rates Establishing Pay Rates Pricing Managerial and Professional Jobs Compensation Trends Determining Pay Rates Employee compensation Employee compensation refers to all forms of pay or rewards going to employees and arising from their employment. It consists of 2 parts: Direct financial payments Indirect financial payments Determining Pay Rates Direct financial payments Pay in the form of wages, salaries, incentives, commissions, and bonuses. Direct compensation is given based on: Increments of time Wage (day work) Salary Performance Piecework Commission Indirect financial payments Pay in the form of financial benefits such as insurance. Factors Influencing Pay External factors Internal factors Factors Influencing Pay Internal factors Company policy Competitive strategy Company financial status Employees’ personal competence Equity go External factors Legal considerations Union membership Macroeconomic status inflation Labor market Industry development level go Corporate Strategy and Compensation The compensation plan should further the firm’s strategic aims management should produce aligned reward strategy Aligned reward strategy The employer’s basic task is to create a bundle of rewards—a total reward package—specifically aimed at eliciting the employee behaviors the firm needs to support and achieve its competitive strategy. The HR or compensation manager will write the policies in conjunction with top management, in a manner such that the policies are consistent with the firm’s strategic aims. Corporate Policies and Competitive Strategy To remain competitive, com