11-08-2012, 12:27 PM
Wage and salary administration
Wage_and_salary_administration.ppt (Size: 118.5 KB / Downloads: 54)
Objectives of compensation planning
Internal equity: more difficult jobs are paid more.
External equity: paid similar as other jobs in the industry.
Individual equity: equal pay for equal work.
Additional:
Attract talent
Retain talent
Ensure equity
New and desired behaviour
Control costs
Comply with legal rules
Ease of operation
Wage determination process
Find the worth of each job through job evaluation
Conduct a salary survey to find what other employers are paying for comparable jobs.
Group similar jobs into pay grades.
Price each pay grade using wage curve.
Fine tune pay rates.
Pay structure in India
Basic wage: criteria:
Skill needs of the job
Experience needed
Difficulty of work: mental snd physical
Training needed
Responsibilities involved
Hazardous nature of job
Dearness allowance: All India Consumer Price Index
Other allowances
Wage and salary administration
Wage: remuneration to workers
Salary: compensation to office, managerail, technical and professional staff.
Wage and salary administration: process of managing a company’s compensation programme.
Principles
Wage and salary plans should be sufficiently flexible.
Job evaluation must be done scientifically.
Wage and salary administration plans must always be consistent with overall organisational plans and programmes.
Wage and salary administration plans and programmes should be in conformity with the social and economic objectives of the country.
Wage and salary administration plans and programmes should be responsive to the changing local and national conditions.
These plans should simplify and expedite other administrative processes.