Training objectives



Compensation and Benefits Environment

  • The Environmental Factors Effecting Reward Strategy
  • Government Regulation in compensation - wages, Protection programs, Tax Structures
  • Social security & insurance in Compensation- unemployment, old age, retirement pension, disability insurance, survivor benefits, medical care and unemployment insurance
  • Changes in Compensation Due to Collective Bargaining
  • Changes in the Compensation Administration Due to shared services, off shoring, technology, freelancing, portfolio working

Case analysis


2 hrs

Rewards & Basics of Compensation


  • Compensation Basics retaining of employees through direct wages & indirect benefits
  • Components of Compensation System like direct pay, base pay, merit pay, deferred pay, protection pay, medical benefits, profit sharing, stock options etc
  • Components of Equity Theory - Internal Equity, External Equity, Individual Equity

Case analysis
Simulation exercises


2 hrs

Building Internal Equity


  • Identifying Compensable Job factors through job analysis
  • Job Analysis
  • Establishing Internal Equity through Job Evaluation Methods like job rankings, job grading, point plans, Hay plan - comparing job vs job & job vs scale
  • Determining relative importance of a Job using job Rankings
  • Factors affecting Job Grading like budget control, business impact, working conditions etc.
  • Evaluation of jobs through point plans
  • Assigning points values using Hay Plan


5 hrs

Building External Equity


  • Different Aspects of Establishing External Equity like benchmarking, compensation surveys etc
  • Monitors the movement & development in the labor market using Salary Survey components like base salary, salary ranges, Incentives or bonuses, allowances or benefits etc
  • Designing Salary surveys using benchmark jobs, grouping positions, job data etc
  • Periodicity of Salary Surveys

Case analysis
Simulation exercises


1.5 hrs

Building Individual Equity


  • Maintaining individual equity through Performance Pay Options like piece rate pay, performance bonus, gain sharing, Esop's, pay for knowledge etc
  • Building Performance Pay Systems using variable progression
  • Pay for Performance: the challenges - psychological contracts, the credibility Gap, job dissatisfaction and Stress etc
  • Introducing Pay for Performance system using steps like intent, performance criteria measurement, Funding, evaluation plan etc  The Challenges


4 hrs

Benefit Plans & Total Reward Planning


  • Benefit Plans - paid time off, medical insurance, dental insurance, disability, life insurance, retirement benefits, family leave, education and training programs, bonuses, commissions and stock options
  • Mandated  Benefits - social security, unemployment insurance, workers compensation
  • Security/Insurance Benefits - severance pay, Supplement unemployment benefits, health insurance, life insurance, dental insurance
  • Retirement Benefits
  • Time Off Related Benefits - holiday pay,vacations, leave of absence, wellness programs
  • Non-monetary perquisites - Promotion, Recognition and Awards, Transfer etc
  • Monetary perquisites - Club Membership, Educational and Child Care Benefits etc
  • Cafeteria Plan/Flexible Benefit Plans

Case analysis
Simulation exercises


1 hrs

Total Reward Planning


  • Reward Strategy Objectives
  • Components of Total Reward


1 hrs