Question

Assess methods of compensation and benefits planning.

Answer 1

Compensation is required in any kind of job for employee.It is related to monetary term.When an employee does a job in to any organization then in return for their work the company will give them payment in monetary terms in form of wages and salaries.

There are usually two kind of compensation base pay and variable pay.Base pay is based on the role of the employee offered in the organization. Variable pay is based on the outcome of the individual. Particular performance of the employee that how much active an employee is for the particular role.Incentive and bonus are included in variable pay based on the performance.

1. Wages and Salaries

Wages and salaries are the form of copensation.There is little difference in Wages and Salaries.Wages are given on hourly basis.Generally It is given to labor employees whose working shifts are continiously changing.While Salary is given to employee on weekly or monthly basis.Generraly it is for office staff employee.Wages and salaries differ from one employess to another according to their skill,experience and role in the organization.

2.Offer Commission:

Commission is also kind of compensation.It is generally given to marketing department employees to sales person on the completion of their targets.By giving them commission they will be motivated to work with more enthusiasm.Commission is pre-decided percentage by the organization so to get the benefi for that emploee need to achieve its target in planned manner.

3.Give Combination:

In some organization employees are getting both the terms i.e salary as well incentive also.Generally it is applied to sales staff.

4.Give Bonus:

Bonuses are based on individual performance.Due to giving bonus emplyees performance will be high. It is given to the salaried staff and it is kind of variable inputSalried staff will get the benefit of the same when any particular thing is done by employee or goal achievement. Company also give the bonus on the event or any festival.The reason for giving the bonus is to increase their will power and maintain the retention of certain skills

Benefits:

Employee benefits includes retirement plans, health life insurance, disability insurance, vacation etc.The cost of the giving these benefits is comparatively high to the organization.So organization make changes in this benefits at regular intervals.

Benefits are given to the emploees because they are the part of the organization and their involvement of work in the organization. When any organization provides such kind of benefits to the employee then employee feel him self as a family member of the organization.

Benefits are tangible and intangible;

Some examples of tangible benefits includes vacation pay, holiday pay, and maternity leave, contribution to retirement (pension pay), profit sharing, stock options, and bonuses.

Intangible benefits includes appreciation from a superir, promotion, etc.

Other benefits an employess can get include transportation, paid time off, vacation time, meals and mobiles.

Following are the methods of Benefit:

Insurance Medical;

Employee pay some percentage of its monthly salary to get insurance medical.It covers post hospitalization charges.Physian cost,Surgeon cost,hospital room rentmedicine expenses included in this. Other benefits and disase depend on the organizationthat how much it has tie up with the hospital.Someimes family member of employee can also include in this.Large organization offer this kind of benefits to the employees and thus his family also.

Disability Insurance;

When an employee is not able to do a job or is not able to perform his duties because of any accidenet and injury occurs then employee offered with Disability insurance . This benefit is not commonly offered. There are two main types of disability insurance:Its of two types;

• Short-term disability It is type of temporary disability which can be covered in few days or week.Employee started to get money from the very beginning.
• Long-term disability It is type of permenant disability which will take long period of time to get recover from illness or any injury and due to that emplyee is not able to do a job.

Retirement Benefits;

It includes pension funds,Gratuity.It is based on the years of the service of an employee.

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