Compensation, Reward and Recognition

This discipline covers the various forms of direct compensation—i.e. employee’s pay including variable pay, short and long term incentives, company stock awards, as well as promotions and pay increases. It also deals with indirect compensation such as paid leave, insurance, retirement income and various employee services, commonly referred to as “benefits” that employers use to attract, recognize, retain and motivate employees to contribute to the organization’s strategic objectives. The Compensation and Reward discipline includes designing and administering compensation philosophy, strategy and systems, compensation benchmarking, executive compensation and other competency or function based compensation practices. In addition, it explores flexible work arrangements, such as telecommuting and flextime that employees may perceive as benefits and covers the mechanism of rewards which encourage superior performance from employees, like sales incentives. This discipline also includes matters that focus on compensation-related careers, communication, legal and regulatory issues, technology, metrics and outsourcing, as well as effective compensation practices and global compensation issues.

Articles

Building Effective Employee Rewards Programs in 2013

Building Effective Employee Rewards Programs
By M.S. Ashok
8/9/2013

The workforce now-a-days is more articulate about their needs. Employees desire the best of everything – competitive salaries, job security, career enhancement options, work-life balance, and so on....

Rethinking Outrageous CEO Salaries in 2013

By Sanjay Joshi
25/06/2013

The topic of CEO salaries is a sensitive one and often critics have ridiculed the explosive and outsized rewards paid out to the C-suite honchos. The perennial supply-demand gap led to sky-high executive compensation...

Research Papers

Reviewed 7/28/2010

Scope—This article—primarily for the benefit of HR professionals who are not compensation specialists—discusses all the steps involved in developing and implementing a market-based pay structure. It refers to but does not include a detailed discussion of job evaluation or of other internally focused methods of setting...

Introduction to Sales Compensation
The objective of the sales compensation plan is to motivate the sales force to achieve specific targets (e.g., sales/revenue) that directly translate to the bottom line of the company.

Sales compensation is unique from nonsales variable pay plans in that the sales compensation...

SHRM Briefly Stated

7/1/2004

Definition of Job Analysis

Job analysis is the systematic study of jobs to determine what activities and responsibilities they include, their relative importance in comparison with other jobs, the personal qualifications necessary for performance of...

Case Studies

By Lisa A. Burke, Ph.D., SPHR 2009 Compensation is a critical area of human resource (HR) management, and one that can greatly affect employee behavior. To be effective, compensation must be perceived by employees as fair, competitive in the market, accurately based, motivating and easy to understand. This case is rated as slightly challenging and...

Tools & Templates

Performing Job Analysis

Job analysis is the systematic study of a job to determine which activities and responsibilities it includes, its relative importance to other jobs, the personal qualifications necessary for performance of the job and the conditions under which the work is performed. An important concept in job analysis is that the job, not the person doing the...

Compa-Ratio Calculation – Compensation Benchmarking

18/06/2012 

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Have an HR-related question? Take advantage of your exclusive benefit of membership (excluding student members) and tap into the knowledge of SHRM's team of certified HR...

SALES COMPENSATION POLICY

These sample policies are EXAMPLES and are not “model” policies. The policies have not been reviewed legally and do not necessarily reflect the employment laws in the various states of India. SHRM urges you to use these as samples, not as models; adapt them to your own organization’s policies, practices and culture, and above all, have it...

Blogs

Ravi
Experience, literature and research clearly indicate that variable pay (VP) programmes are a key element in improving employee productivity. Smartly designed variable pay programmes  can lead to an increase in discretionary performance, higher levels of employee engagement and the employers’ ability to influence not just the output (what) but...
Subject Matter Expert
Experience, literature and research clearly indicate that variable pay (VP) programmes are a key element in improving employee productivity. Smartly designed variable pay programmes  can lead to an increase in discretionary performance, higher levels of employee engagement and the employers’ ability to influence not just the output (what) but...

Featured Books & Publications

Multi-generational Diversity in the workplace – An India perspective. As the world’s second largest country, India has a population of more than 1.21 billion people. Of this, 29.7 per cent of the population is between 0-14 years of age, 64.9 per cent between 15-64 years of age and 5.5 per cent above 65 years. By 2020, the median age in India will...
SHRM Briefly Stated 7/1/2004 Definition of Job Analysis Job analysis is the systematic study of jobs to determine what activities and responsibilities they include, their relative importance in comparis