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,*,Color Overhead Title,Body Text,Second Level,Third Level,Fourth Level,Fifth Level,Color Overhead Title,Body Text,Second Level,Third Level,Fourth Level,Fifth Level,*,Salary Survey based on Hay Method,1,Internal,equity,External,equity,Employee,equity,Administration,Concepts,Compensation Techniques,Planning,Budgeting,Monitoring,Evaluating,Job,Analysis,Job,Description,Job,Evaluation,Job,Grades,Market,Definitions,Salary,Surveys,Policy,Lines,Pay,Structures,Seniority,Increases,Performance,Evaluation,Increase,Guidelines,Compensation Objectives,Role clarity and accountability.,Facilitates administration and,performance management.,Competitive wage policies and,practices.,Influence employees work,attitudes and behaviour.,Attract talents.,Retain talents.,Motivate employees.,Comply with regulations.,Consistency in policy,administration.,The Strategic Compensation Model,2,Compensation Management,The fundamentals of salary administration,Salary administration is concerned with deciding how and what staff should be paid and with the techniques and procedures for designing and maintaining salary structures,rewarding staff and exercising salary control.,3,Aims Of Salary Administration,The basic aims of salary administration are,to attract,retain and motivate,staff by developing and maintaining a competitive and equitable salary structure.,To ensure that a sufficient number of suitable staff is attracted to join the organization;,To encourage suitable staff to remain with the organization;,To develop and maintain a logical salary structure which achieves equity in the pay for jobs of similar responsibility and consistency in the differentials between jobs in accordance with their relative values;,To ensure that salary levels match market rates;,To keep the salary levels adjusted in line with increases in the cost of living;,4,Aims Of Salary Administration,To maintain consistency in methods used to fix and review salary levels and differentials;,To provide for progression within the salary structure in accordance with performance and level of responsibility;,To operate the salary system fairly and convince the staff that the system is fair;,To maintain a flexible salary system which will accommodate changes in the market rates for different skills and in the companys organization structure;,To achieve simplicity in operations as an aid to staff understanding and to minimize administrative effort;,To operate effective systems of controlling salary costs and the administrative procedures required to achieve the above aims at the least cost to the organization.,5,Components Of Salary Administration,The starting point of salary administration is the determination of salary levels by job evaluation.Thereafter,salary administration is concerned with:,The design and maintenance of salary structures;,The operation of salary progression systems;,The administration and control of salary reviews;,The design and operation of bonus schemes;,The provision of employee benefits and other allowances;,The development of a total remuneration policy.,6,Compensation Tools and Techniques,Pay Structure,Salary Structure,Performance Related Pay,Merit Payment Scheme,Incentive Scheme,Benefit Policies,Salary Review Guidelines,Compa-ratio,Salary Problems,7,Criteria for Pay Structures,Be appropriate to the needs of the organization,in terms of its:,-culture,size and the degree in which changes take place,-need for flexibility,-type and level of employees to be covered,Be flexible in response to internal and external pressures,especially those related to market rates and skill shortages.,Provide scope for rewarding high-flyers while still providing appropriate rewards for the majority of employees.,Ensure that rewards are given in line with performances and achievements.,Provide a basis for career planning which will motivate ambitious employees with high potential.,Facilitate consistency in the treatment of varying levels of responsibility and performance.,8,Graded Salary Structures,All jobs are allocated into salary grade within the structure on the basis of an assessment of their internal and external value to the organization.,Each salary grade consists of a salary range or band.,The jobs allocated to a salary grade are assumed to be broadly of the same level normally the same minimum and maximum rates,which correspond with grade boundaries.,9,Graded Salary Structures,A typical graded structure consists of a sequence of salary grades or ranges,each of which has,a defined,minimum and maximum,.It is assumed that all the jobs allocated into a grade are broadly of the same value,although actual salaries earned by individuals will depend on their performance or length of service.,Across the board cost of living or market rate increases will usually result in an increase to the minima and maxima of each grade.All the jobs in an organization may be covered by the same structure of salary ranges or there may be different structures for different levels or ca
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