hrm_finalll
TRANSCRIPT
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COMPENSATION
&BENEFITS
PRESENTED BY
BHANU KALYAN 04
PREETI DHAWAN 09
GHANSYAM
ABHIJEET HELE 17
PRATIK LANGI 28
GOVIND MASRAM 31
NIDHI CHHABRA 36
AKHIL PALRECHA
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Overview of Employee Compensation and Benefit in
India
Employee CompensationEmployee Compensation
SalarySalary AllowancesAllowances& Bonus& Bonus
EmployeeEmployeeBenefitsBenefits
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Companies providing benefit
Analysed items
House Rent Allowance
GratuityHousing Loan
Medical reimbursement/ allowance
Insurance
Leave Travel allowance
HospitalisationVariable Bonus
Conveyance allowance
Superannuation
Car Loan
Social/ Sports club membership
Incentive/ Sales Commission
Hard Furnishing
Medical check-up
Fixed Bonus
Other allowances
Flexible benefit plan
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HOW TO MOTIVATE?
One that i based on the understanding of
how human nature wor s. All humans aremoti ated by 2 things -- leasure orpain.
Ability and moti ation are the core part of
any good employee moti ation program Ability can be improved with training and
education.
Motivation is the willingness of a person to
want to perform a task
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KEY ELEMENTS OF MOTIVATION
PROGRAM Positive reinforcement along with high
expectations, provide training whennecessary.
Treat people fairly, with respect, and honestly
Understanding and addressing employeeneeds.
Teach employees how to set work relatedgoals.
Restructure orreorganize jobs and jobdescriptions when necessary.
Have a rewards system based on jobperformance.
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MOTIVATION TECHNIQUES
One technique to motivate employees thatworks really wellis the employee of the month.
Othereffective employee motivationtechniques include competitions between
teams in orderto get projects completedfaster, awards forperfect attendance, andawards forjobs well done.
Some companies willlet customers rate theircustomerservice representatives. At the end
of a specific time frame an award is given tothe person who has provided the mostoutstanding customerservice.
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OUTCOME OF THE PROGRAMS
Helps in finding out exactly what theemployees like and dislike about theircurrentemployment situation
How employee satisfaction is changing over
any given time period Employee retention and turnoverrates can be
greatly improved by using employeemotivation surveys as exit surveys, thecompany needs to know why employees are
leaving. Is it a skillissue, a pay rate issue, etc. Improving employee retention is a great way to
improve a company's bottom line
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Employee Benefits Insurance Cos viewpoint
Employee BenefitsEmployee Benefits
InsuranceInsurance RetirementRetirement
DefinedDefinedContributionContribution
DefinedDefinedBenefitBenefit
LifeLifeAccidentAccident MediclaimMediclaim LeaveLeaveEncashmentEncashment
GratuityGratuity
SuperannuationSuperannuation
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Mediclaim Insurance
Reimbursement of medical expenses following hospitalization
Cash less hospitalization facility available under certain plans
Tax deduction available for the business
Accident InsuranceAccident InsuranceCan offer compensation for any/all of the following:
Accidental death, disability
Medical expenses for treatment post accident
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Leave Encashment Defined benefit
For whom?
y If company offers encashment of leave, all employees
What benefit?
y Will be based on the company policy.
y Normally xdays salary for each accumulated day of leave
How Funded?
y Institute of Chartered Accountants of India require that aprovision be made for the liability.
y No special tax benefits for self-funding through a trust
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Gratuity Defined Benefit
For whom?
y Engaged in Factories, Mines, Plantations, Railways, Shops
and establishments notified by Government
y In service for 5 successive years
What benefit?
y 15 days wages for each year of service
y Maximum limit Rs 3,50,000/
y7 days wages per season for seasonal occupation
How Funded?
y Special tax concessions if funded through a trust or insurance
company
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Superannuation Defined Contribution/ benefit
Superannuation, is a special way of saving to provide yourself withan income when you retire.
Retirement plans may be set up by employers, insurancecompanies, the government or other institutions such as employerassociations or trade unions
For whom?
y Non-mandatory, defined by company policy
What benefit?
y Can be defined benefit(certain formula of last drawn salary) /definedcontribution(certain %age of salary every month contributed to a fund)
y Can be different for different grades How Funded?
y Special tax concessions if funded through a trust or insurance company
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Retirement Benefits - Trends
Offers a cash-accumulation conventional scheme.
Normal Retirement Age The normal retirement age is 65 years.
Human Resource Department will write to each employee 6 monthsprior to their normal retirement age.
More and more companies now funding through Insurance
Pensions benefits - In general, a pension is an arrangement to
provide people with an income when they are no longer earning a
regular income from employment.
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DEARNESS ALLOWANCE
The Only Purpose of Dearness Allowance is to enable aworkerin event of a rise in cost ofliving to purchase thesame amount of goods of basic necessity as before
DA is calculated based on AICPIN (All India Consumer
Price Index Number) Dearness Allowance is paid on the Basic Pay as defined
in FR 9(21)(a)(i)+NPA, if any (PersonalPay, SpecialPay, etc., not included)
There are 2 kinds of payment of DA as practiced in India
:- linked to cost ofliving index
- not linked to cost ofliving index
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DA and CONSUMER PRICE INDEX
As perthe Rupee-point system, Increase ordecrease in DA is decided based on theaverage Quarterly/Half Yearly increase ordecrease in ConsumerPrice Index Point. For
example in the cement Industry DA increasesordecreases by Rs 2.15 perpoint .The SugarIndustry calculates DA at Rs 2/- perpoint.
The expected All India ConsumerPrice Indexnumber(AICPIN) forIndustrial Workers Base
2001=100 forthe month of May 2010 wasreleased by Statistical Department, Labour.The AICPIN forthe month of May 2010 is 172.
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HOUSE RENT ALLOWANCE
House Rent Allowance is wage in cases
where it is being paid.
In cases where an employee is being paid
house rent allowance, the same will be
included both forcoverage and contribution
In cases where the staffquarters have beenallotted the amount of salary and wages paid
will count forcoverage and contribution and
no notional house rent allowance is to be
presumed in such cases.
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CONVEYANCE ALLOWANCE
Conveyance allowance is paid to the employeeto compensate the expenses incurred by the
employees on travelling etc The travelling allowance orvalue of any
travelling concession is also being paid to theemployees in the nature of conveyanceallowance, which is neitherwages forthepurpose of coverage of employees underSec.2(9), norit is treated as wages forthepayment of contribution underSection 2(22) ofthe ESI Act.
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MEDICAL ALLOWANCE
The employees working infactories/establishments are being providedmedical services in kind by the employerbut incertain factories/establishments instead of
providing medical services in kind, the amountspent by the employees on medical care isreimbursed while in some otherorganisations,employees are being paid monthly cashallowance in lieu of medical aid/reimbursement
of medical expenses. Where such paymentsare made by the employerin lieu of themedical benefit, the same are to be treated aswages underSec.2(22) of the ESI Act
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NEWSPAPER ALLOWANCE
In certain factories/establishments the
employees are reimbursed the cost ofNewspapers while in some otherfactories/establishments the employees arepaid monthly newspapers allowance instead ofreimbursement of the cost of the Newspapers.
Where the amount is being paid regularly to theemployees by the employeras Newspapersallowance the same will be treated as wagesunderSec.2(22) of the ESI Act
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EDUCATION ALLOWANCE
Employees are being paid monthly Educationallowance forthe children studying in theSchools/Colleges. Where such educationallowance is being paid monthly, the same is
to be considered as wages underSec.2(22) ofthe ESI Act and the contribution is chargeableon the said amount.
However, in such cases where instead ofpaying the education allowance on monthly
basis, the amount spent as fee is reimbursedto the employees and booked undereducationallowance, in such cases no contribution ispayable
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DRIVERS ALLOWANCE
In some of the factories/establishments the officersemployed as employees are being paid driversallowance permonth. This allowance is being paid toenable the officers to appoint a driverat theirownlevel and such drivers employed are not being paid
salary directly by the factories/establishments.Where such allowance is being paid to theemployees and the drivers are not engaged by theemployees, in such event the allowance paid assuch will be considered as wage underSection 2(22)of the ESI Act and contribution will be chargeable
provided the employee is coverable undertheScheme
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EMPLOYEES' PROVIDENT FUND
ORGANISATION EPFO statutory body of the Government of
India underMinistry of LabourandEmployment. It administers a compulsorycontributory Provident fund, pension and
an insurance scheme forIndian Workforce.
The primary aim is to provide old-ageincome security so as to contributing to theeconomic and social well-being of Indians
The Employees' Provident Funds andMiscellaneous Provisions Act, 1952 cameinto effect on 4th March 1952
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EPFO (contd)
There are a total of about 40 millioncontributing and non contributing membersin about 450,000 covered establishments.
As perprovisions in force almost anyestablishment in India is required to have aregistration with the basic criterion beingemployment of 20 ormore persons
Contribution is at present 12% ofbasic
salary as employee's share and a matchingcontribution by the employer, with the totalto be 13.61% of the total wages of theemployees.
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GRATUITY
Gratuity is a payment made forthe past services ofthe employee by the employerwhen employee retireorresign from the organization
It is payable for15 days peryearfora period theemployee has worked in the organization
Gratuity is payable to any employee only afterthecompletion of 5 years of continuous service in theorganization
Covered underthe Payment ofGratuity Act,1971: (Last drawn monthly basic salary + dearness
allowance)/26 x 15 days x numberof years ofservice (date of joining date ofretirement/leavingjob)
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EMPLOYEE STOCK OPTION PLAN
An employee stock option is a call option on thecommon stock of a company, issued as a form ofnon-cash compensation
Employee stock options are mostly offered tomanagement as part of theirexecutive compensationpackage
Employee stock options (ESOs) are non-standardized calls that are issued as a privatecontract between the employerand employee. Overthe course of employment, a company generally
issues ESOs to an employee which can be exercisedat a particularprice set on the grant day, generallythe company's current stock price.
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PERFORMANCE LINKED
INCENTIVES
PLI is a form of payment from an employerto an employee, which is directly related tothe performance output of an employee
and which may be specified in anemployment contract
PLI vs. salary
PLI vs. bonus
PLI vs. appraisal PLI vs. retention bonus
Method of calculating PLI
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MARICO
Marico is a leading Indian group providingconsumer products and services in the areas ofHealth and Beauty based in Mumbai
During 2009-10, the company generated aTurnover of about Rs.26.6 billion (USD 600Million), in respect of its food, hair care andskin care related activities
The organisation holds a number of brands viz.
Parachute, Saffola, Sweekar, Hair&Care, Nihar,Shanti, Mediker, Revive,Kaya Skin Clinic,etc
As of 2010, it employs 1000 people
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ORIENTAL BANK OF COMMERCE
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VISION
To be a sound all India, customercentric, efficient retail bank with
contemporary size, technology andhuman capital; endeavouring toenrich lives across all sections ofsociety; and committed to upholding
the highest standards of corporategovernance.
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MISSION
To provide the finest banking services byupgrading human capital and infusing
advanced technology, thereby achievingtotal customer satisfaction; and beingreckoned as the Best Bank in theIndustry on all efficiency parameters.
To enhance shareholders wealth by
ensuring sound growth of business andmake valuable contributions to nationaleconomic growth.
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CSR ACTIVITIES
GRAMEEN PROJECT
'The Comprehensive Village Development
Programmer
14 point action plan
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ALLOWANCES Dearness Allowance
House Rent Allowance Travelling Allowance
Entertainment Allowance
Hilly Area Allowance Medical Allowance
Children Education Allowance
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OTHER
BENEFITS
NIGHT DUTY ALLOWANCEGRATUITY
FESTIVAL ADVANCE
LEAVE ENCASHMENTENTERTAINEMENT
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Our mission is to improve the quality of humanlife by enabling people to do more, feel betterand live longer
Ourbusiness employs 96,500 people in over 100countries
Around 13,000 people work in our researchteams to discover new medicines
Our vaccines are included in immunisationcampaigns in 182 countries worldwide
We delivered 1.4 billion vaccine doses to 179
countries in 2010 Ourlong term vision is for our entire value chain
to be carbon neutral by 2050
Many of our consumer brands are householdnames: alli, Ribena, Horlicks,Lucozade, Aquafres
h, Sensodyne, Panadol, Tums
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Ourproducts
1. Prescription medicines
2. Vaccines3. ConsumerHealthcare
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Salary model:
Basic Rs.170 /- p.m.
Dearness AllowanceR
s. 13179.50/- p.m.
House Rent Allowance Rs.1260.58/- p.m.
Medical Allowance Rs. 292/- p.m.
Education Allowance Rs. 639.43/- p.m.
C/Fpaise Rs.1.89/- p.m.
Total Rs. 15543.4/- p.m.
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Expences :
Dealy Allowance Rs.215/-p.m. (metro city)
Rs.195/-p.m.(otherthan metro city)
Ex. Headquarter Rs.205/-p.day.
Mob. Allowance Rs.500/-p.m.
Local train pass -------
Traveling Allowance Rs. 3.5/- p.km.(perday 140 k.m.)
Stationary Allowance -------
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Incentives: if target achieve
Monthly Rs.2500/-
Quarterly --- Rs.20,000/- Six month Rs.30,000/-
Coverage and Reach----Rs. 2500/-p.m.
Product wise Incentives.