M3S1 Flashcards
The two main goals of compensation and benefits are:
- Attract
- Retain
Common Pay Systems (3)
- Pay Grade system
- Going Rate System
- Management fit system
Common Pay System:
A salary scale is set up for each job in an organization
Pay grade system
Common Pay System:
Pay is based on the industry standard for a specific job title.
Going rate system
Common Pay System:
Provide managers with the highest degree of flexibility to determine the compensation they believe an individual should receive.
Management fit system
Common Pay Systems:
other pay system also exist (4)
- skill-based pay
- Competency-based pay
- broad banding
- Variable Pay system
Common Pay System:
pay is based on skills, not job title.
Skill-based pay
Common Pay System:
Emphasized Employee traits and growth potential, not just skills.
Competency-based pay
Common Pay System:
Categorizes similar Jobs into broader pay bands.
broad banding
Common Pay System:
Pay is linked to achieving defined goals or targets.
Variable Pay system
Pay-Related Motivational Theories: (3)
- Equity Theory
- Expectancy Theory
- Reinforcement Theory
Pay-Related Motivational Theories:
People assess their compensation satisfaction by comparing it to others.
Equity Theory
Pay-Related Motivational Theories:
Individuals contribute effort based on their expected rewards.
Expectancy Theory
Pay-Related Motivational Theories:
High Performance followed by rewards promotes future high performance.
Reinforcement theory
Common laws related to C&B (10)
- Minimum wage pay
- 13th month pay
- (SIL) Service Incentive Leave
- Expanded Maternity Leave
- Paternity Leave
- Solo parent Welfare act
- Retirement Pay Law
- SSS
- Pag-IBIG Fund
- PhilHealth
Common Laws related to C&B:
HR professionals need to keep up-to-date with the minimum wage rates set by the (NWPC) National Wages and Productivity commission for different regions and Industries. Wage orders issued by the (RTWPBs) Regional Tripartite Wages and Productivity boards.
Minimum Wage Pay
Common Laws related to C&B:
this law mandates the payment of a 13th month pay to all rank-and-file employees in the private sector, which is equivalent to one-twelfth (1/12) of the basic salary of an employee within a calendar year.
13th Month pay Law
Common Laws related to C&B:
Grants five days of paid leave annually to employees with one year of service. it covers all private sectors employees, allowing them to use the leave for any reason, and it’s paid at the regular daily wage based on the employee’s monthly salary.
(SIL) Service Incentive leave
Common Laws related to C&B:
under this law, female employees are now entitled to 105 days of leave with full pay, regardless of the mode of delivery. this law also includes an additional 15days of leave for solo mothers. moreover, it provides an option for an additional 30 days of unpaid leave, allowing mothers more time to recover and care for their newborns.
Expanded Maternity Leave
Common Laws related to C&B:
under this law, male employees are entitled to seven days of leave with full pay. this benefit provides fathers the opportunity to be with their families during a crucial time and share in the responsibilities of caring for their newborn child.
Paternity Leave
Common Laws related to C&B:
Supports single parents by providing benefits like flexible work schedules, parental leave, educational assistance, housing preferences and healthcare services for them and their children.
Solo Parents’ Welfare Act
Common Laws related to C&B:
This law mandates private sector employers to provide pay to employees who meet certain conditions. It requires employers to pay benefits to employees who have reached the age of 60 with at least 5 years of service.
Retirement pay law
Common Laws related to C&B:
provide social security benefits to private sector employees, self-employed individuals, and voluntary members. it covers sickness, maternity, disability, retirement, and death benefits. members and employers contribute to the “________” for financial security.
(SSS) Social Security System
Common Laws related to C&B:
focuses on housing and savings. Members, including employees and employers contribute to access housing loans, short-term loans, and saving programs. it promotes homeownership and financial stability.
Pag-IBIG fund
Common Laws related to C&B:
offers health insurance coverage funded by contributions from members. it covers medical expenses, including hospitalization, surgeries, and preventive care, aiming to provide accessible healthcare and reduce financial burdens.
PhilHealth.
