HR 7 Compensation & Reward Flashcards
Parts of compensation packages
base pay/salary, benefits (health care), incentives (stimulansen)
Benefit (explained)
based on job > Insurance, holiday money, childcare, car
Incentives, stimulance (explained)
based on performance > bonus, rewards, not guaranteed
Job evaluation (explained)
Is the process of determining the relative worth of jobs to determine pay structure. How important/heavy is the job? > how much salary?
Job evaluation methods: Job ranking system
Ranking in order of importance to the organization
Disadvantage: Highly subjective (opinions)
Job evaluation methods: Paired comparinson
Ranking, compares each job against all jobs
Disadvantage: evaluators must know all jobs, pairing is a lot of work
Job evaluation methods: Job classification system
Every job is classified and grouped > knowledge, skill, years of experience, level of authority > worth the job
Most used!
Job evaluation methods: Point factor system
Determines the value of a job by calculating > compensable factors > points given to a specific job
About content of job
Job evaluation methods: Point factor system
Determines the value of a job by calculating > compensable factors > points given to a specific job
About content of job
Job evaluation methods: Point factor system
Determines the value of a job by calculating > compensable factors > points given to a specific job
About content of job
Job evaluation methods: Hay profile method
Point value system 4 factors:
- Know-how
- problem solving
- accountability
- working conditions
quite the same as point-factor system but then only these things
Pay grading
The process of setting the pay scale for specific jobs or types of jobs
Methods of pay grading: Pay grade levels
name 1 advantage and 2 disadvantages
salary scales > cao levels > most used
Advantage: promotes fairness, equal pay and no discrimination
Disadvantage: rigid (stijf) system, less room to hire best people > pay above market, also: supports its not my job mentality
Methods of pay grading: Delayering and banding
Cuts down the number of pay levels
Advantage: broader range of paying > flexibility
Disadvantage: less transparant > paying who they like more
Methods of pay grading: Going rate model
Supply-and-demand factors. Corona virus > docters > pay whatever it takes
Pay system considerations: Skill based pay
Paid on set of current skills
Pay system considerations: Competency-based pay
Set of traits (eigenschappen)/personality > future orientated > focus on potential
Disadvantage: can be bias/an interpretation
Pay system considerations: Variable pay system
Provides employees with a pay basis but then links the achievement of certain goals directly to their pay
Motivation Theories for Pay systems: The equity theory
Satisfaction employees get from inputs (work) and outputs (pay) –> comparing yourself to others
External pay equity: refers to what other people in similar organizations are being paid for a similar job
Internal pay equity: focuses on employees within the same organization
Motivation theories for pay: Pay system considerations: The expectancy theory
Employees will put in as much work as they expect to receive –> when finding out payed good –> work harder to achieve goals
Motivation theories for pay: The reinforcement theory
Performance is followed by some reward > desired behavior –> when getting a reward he keeps up the good work
Effect of compensation on performance
Motivation>satisfaction Growth and development Structure and well being Recitation Rewards>Encourage
