Now days the organizations use supplementary compensation over and above the base compensation. It helps in satisfying the employees as well as retaining them for long time.
2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
3. Compensation in organization
• Compensation is a wide
range of financial and
non financial rewards to
employees for their
services rendered to the
organization.
4. Compensation in organization
• It is paid in form of wages,
salary, other benefits such
as vacations, maternity
leave, medical facilities
etc. compensation helps in
motivating the employees
and reduce labor turnover.
6. Supplementary compensation
• Now days the organizations use
supplementary compensation
over and above the base
compensation. It helps in
satisfying the employees as well
as retaining them for long time.
7. Supplementary compensation
• It can be given in form of
various services like housing,
medical, educational facility.
Supplementary compensation
is also called fringe benefit as
well as hidden payroll.
8. Supplementary compensation
• The basic purpose of fringe
benefit is to maintain
efficient human resources
in the organization and to
motivate the employees.
9. Supplementary compensation
• Supplementary compensation is
again divided into following
types:
– Protection against hazards.
– Employee services.
– Payment for time not worked.
– Legal payments.
10. Supplementary compensation
• Protection against hazards:
supplementary compensation
helps in protecting against the
hazards of illness, injury, old
age, death, permanent
disability.
11. Supplementary compensation
• Employee services: some big
organizations provide housing,
low-cost loan, food, medical,
and day care centre for children,
educational facilities to their
employees for their services.
12. Supplementary compensation
• Payment for time not
worked: the employees are
also paid for the time they are
not working like wash up
time, lunch period, vacations,
holidays, sick leave etc.
13. Supplementary compensation
• Legal payments: payment
under this category
involves unemployment;
layoff compensation, old
age benefits etc.