M3S1 Compensation and Benefits Flashcards
The two main goals of compensation and benefits:
Attract
Retain
convince candidates through competitive rates and benefits
Attract
Common Pay Systems
PGMSCBV
pay grade system
going rate system
management fit system
skill-based pay
competency- based pay
broadbanding
variable pay system
Salary scale is set up for each job in an organization
pay grade system
Pay is based on the industry standard for a specific job title.
going rate system
provides managers with the highest degree of flexibility to determine the compensation they believe an individual should receive.
management fit system
Pay is based on skills, not job title.
skill-based pay
Emphasizes employee traits and growth potential, not just skills.
Competency- based pay
Categorizes similar jobs into broader pay bands.
broadbanding
Pay is linked to achieving defined goals or targets.
variable pay system
Pay-Related Motivational Theories
Equity theory
Reinforcement theory
Expectancy theory
Motivation to accept and/or stay in a job are affected by pay
Pay-Related Motivational Theories
People assess their compensation satisfaction by comparing it to others’ pay
Equity theory
Common Laws Related to compensation and benefits
Minimum Wage Laws
13th-Month Pay Law
Service Incentive Leave (SIL
Expanded Maternity Leave
Paternity Leave
Solo Parents’ Welfare Act
Retirement Pay Law
Social Security System
Home Development Mutual Fund (Pag-IBIG Fund)
Philippine Health Insurance Corporation (PhilHealth)
HR professionals need to keep up-to-date with the
minimum wage rates set by the National Wages and
Productivity Commission (NWPC) for different regions
and industries.
Minimum Wage Laws
Individuals contribute effort based on their expected rewards.
Expectancy theory
High performance followed by rewards promotes future high performance.
Reinforcement theory
This law mandates the payment of a 13th-month pay
to all rank-and-file employees in the private sector,
which is equivalent to 1/12 of the basic salary of an
employee within a calendar year.
13th-Month Pay Law
Grants five days of paid leave annually to
employees with one year of service. Covers all private sector employees, allowing them to
use the leave for any reason,
Service Incentive Leave (SIL
female employees are now entitled to 105 days of maternity leave with full pay,
regardless of the mode of delivery
This law also includes an additional 15 days of leave
for solo mothers
Expanded Maternity Leave
Under this law, male employees are entitled to 7 days
of paternity leave with full pay.
This benefit provides fathers the opportunity to be
with their families during a crucial time and
Paternity Leave
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
Covers sickness, maternity, disability, retirement,
and death benefits
Social Security System
This law mandates private sector employers to
provide retirement pay to employees who meet
certain conditions
Retirement Pay Law
focuses on housing and savings, also romotes homeownership and financial stability
Pag-IBIG Fund
Covers medical expenses, aiming to provide
accessible healthcare and reduce financial
burden.
Philippine Health Insurance Corporation (PhilHealth)
