2. Agenda
Compensation Definition
Compensation Philosophy & Principles at Incture
Current Compensation Structure
Approach Note on Compensation Planning
Proposed Compensation Structure
3. Defining Compensation
Compensation and benefits refers to the compensation/salary and other
monetary and non-monetary benefits passed on by a firm to its employees. It
helps give benefits to employees based on their performance and actions and
brings the best out the employees at workplace.
There are four basic objectives of compensation: focusing your employee's efforts,
attracting quality employees, retaining top performers, and motivating your employees.
These objectives can be referred to with the acronym FARM: focus, attract, retain,
motivate.
How to Set Compensation in 5 Easy Steps
1. Define the job. Define the job's purpose, essential duties and responsibilities, required skills and
knowledge, experience, and educational level. ...
2. Price the job. ...
3. Determine the job's value to your organization. ...
4. Review where a job fits within a grade/range. ...
5. Consider organizational factors, including budget.
4. Principles of Compensation Management
• Principles of Compensation Management
• Ability to Pay
• Non-discriminatory
• Legal Compliance
• Simple & Flexible
• Internal & External Equity
• Performance Orientation
• Employee Development
