MindMap Gallery Employee Compensation And Benefits Mind Map
A mind map of employee compensation and benefits can help employers understand how different aspects of their workplace compensation packages relate to one another. This type of mapping can provide insights into which particular benefits are best for motivating and retaining employees, ensuring compliance with laws and regulations, or creating an overall competitive edge within the marketplace. A mind map is a visual tool that indicates a relationship between the goals of the employer in providing employee benefits and potential solutions to reach these objectives. As you can see from this mind map, creating an employee benefit mind map can be extremely helpful in outlining and understanding the various compensation and benefits available to employees. This could include items such as paid leave, health insurance, retirement options, and other perks. Having a comprehensive picture of what is offered makes it easier for both employers and employees to understand their obligations and considerations when it comes to creating balanced policies for everyone’s benefit. With EdrawMind, you can create a similar mind map for your company.
Edited at 2022-11-27 12:46:52A mind map of employee compensation and benefits can help employers understand how different aspects of their workplace compensation packages relate to one another. This type of mapping can provide insights into which particular benefits are best for motivating and retaining employees, ensuring compliance with laws and regulations, or creating an overall competitive edge within the marketplace. A mind map is a visual tool that indicates a relationship between the goals of the employer in providing employee benefits and potential solutions to reach these objectives. As you can see from this mind map, creating an employee benefit mind map can be extremely helpful in outlining and understanding the various compensation and benefits available to employees. This could include items such as paid leave, health insurance, retirement options, and other perks. Having a comprehensive picture of what is offered makes it easier for both employers and employees to understand their obligations and considerations when it comes to creating balanced policies for everyone’s benefit. With EdrawMind, you can create a similar mind map for your company.
A performance management mind map is a graphical representation of the process of performance management. It can provide an effective tool for visualizing important aspects of the process and making connections between them, allowing organizations to more effectively plan and track their performance. Performance management mind maps typically include things like goals, objectives, team members, and strategies, as well as activities such as goal setting, tracking progress, giving feedback, and assessing results. Mapping out these elements in a visually appealing way, it can help organizations to better understand their performance management needs. With the help of EdrawMind, you can easily create similar mind maps for your projects.
A selection method standards and types of selection methods mind map is a diagram showing the various standards for selecting candidates for a job and the different types of selection methods that can be used. It serves as a visual aid to help organizations make well-informed decisions when selecting candidates for a role. It can also be used to compare different selection methods, looking at the strengths and weaknesses of each in order to determine which method would be best suited for the needs of the organization. Use EdrawMind to create mind maps for your academic and professional requirements. With EdrawMind, you do not need technical expertise to create detailed mind maps.
A mind map of employee compensation and benefits can help employers understand how different aspects of their workplace compensation packages relate to one another. This type of mapping can provide insights into which particular benefits are best for motivating and retaining employees, ensuring compliance with laws and regulations, or creating an overall competitive edge within the marketplace. A mind map is a visual tool that indicates a relationship between the goals of the employer in providing employee benefits and potential solutions to reach these objectives. As you can see from this mind map, creating an employee benefit mind map can be extremely helpful in outlining and understanding the various compensation and benefits available to employees. This could include items such as paid leave, health insurance, retirement options, and other perks. Having a comprehensive picture of what is offered makes it easier for both employers and employees to understand their obligations and considerations when it comes to creating balanced policies for everyone’s benefit. With EdrawMind, you can create a similar mind map for your company.
A performance management mind map is a graphical representation of the process of performance management. It can provide an effective tool for visualizing important aspects of the process and making connections between them, allowing organizations to more effectively plan and track their performance. Performance management mind maps typically include things like goals, objectives, team members, and strategies, as well as activities such as goal setting, tracking progress, giving feedback, and assessing results. Mapping out these elements in a visually appealing way, it can help organizations to better understand their performance management needs. With the help of EdrawMind, you can easily create similar mind maps for your projects.
A selection method standards and types of selection methods mind map is a diagram showing the various standards for selecting candidates for a job and the different types of selection methods that can be used. It serves as a visual aid to help organizations make well-informed decisions when selecting candidates for a role. It can also be used to compare different selection methods, looking at the strengths and weaknesses of each in order to determine which method would be best suited for the needs of the organization. Use EdrawMind to create mind maps for your academic and professional requirements. With EdrawMind, you do not need technical expertise to create detailed mind maps.
Topic 7Compensation and Benefits
Employee Benefits
Reasons for Benefits Growth
1/ A legislative program aimed at buffering people from the devastating effects of the Great Depression.2/ Wage and price controls instituted during World War II, combined with labor market shortages, forced employers to think of new ways to attract and retain employees.3/ The tax treatment of benefits programs is often more favorable. 4/ The cost advantage that groups typically realize over individuals.5/ The growth of organized labor from the 1930s through the 1950s.6/ Employers may also provide unique benefits as a means of differentiating themselves in the eyes of current or prospective employees.
Benefits Programs
Social Insurance (Legally Required)
The establishment of old-age insurance and unemployment insurance.
Workers’ compensation laws cover job-related injuries and death.
Private Group Insurance
Medical Insurance
Medical benefits are by far the most important benefit to the average person.+ Three basic types of medical expenses are typically covered: hospital expenses, surgical expenses, and physicians’ visits.
Disability Insurance
Federal income taxation of disability benefits depends on the funding method. Benefits based on employer contributions are taxed.
Retirement
+ Defined benefit plan guarantees (“defines”) a specified retirement benefit level to employees based typically on a combination of years of service and age as well as on the employee’s earnings level. + Defined contribution plans do not promise a specific benefit level for employees upon retirement.+ One way to combine the advantages of defined benefit plans and defined contribution plans is to use a cash balance plan.
Pay for Time not Worked
At first blush, paid vacation, holidays, sick leave, and so forth may not seem to make economic sense. The employer pays the employee for time not spent working, receiving no tangible production value in return. Therefore, some employers may see little direct advantage.
Family-Friendly Policies
To ease employees’ conflicts between work and nonwork, organizations may use family-friendly policies (also known as policies that help balance work and family) such as family leave policies and child care.
Managing Benefits: Employer Objectives and Strategies
Surveys and Benchmarking
Survey information on benefits packages is available from private consultants
Cost Control
1/ Health Care: Controlling Costs and Improving Quality2/ Staffing Responses to Control Benefits Cost Growth
Nature of the Workforce
Employers must also consider the specific demographic composition and preferences of their current workforces in designing their benefits packages.
Communicating With Employees and Maximizing Benefits Value
1/ Employees Typically Underestimate the Value of their Benefits2/ Flexible Benefits Plans
General Regulatory Issues
Affordable Care Act
Nondiscrimination Rules, Qualified Plans, and Tax Treatment
As a general rule, all benefits packages must meet certain rules to be classified as qualified plans. The favorable tax treatment is designed to encourage employers to provide important benefits to a broad spectrum of employees. The nondiscrimination rules discourage owners or top managers from adopting plans that benefit them exclusively.
Sex, Age, and Disability
A concern for employers in ensuring legal treatment of men and women in the benefits area has to do with pension benefits. Women tend to live longer than men, meaning that pension benefits for women are more costly, all else being equal.
Employers must take care not to discriminate against workers over age 40 in the provision of pay or benefits.
Early retirement incentive programs need to meet the following standards to avoid legal liability
Recognizing Employee Contributions with Pay
How Does Pay Influence Individual Employees?
Reinforcement Theory
The theory emphasizes the importance of a person’s actual experience of a reward.
Expectancy Theory
Focus on the link between rewards and behaviors, it emphasizes expected (rather than experienced) rewards.
Agency Theory
Focus on the divergent interests and goals of the organization’s stakeholders and the ways that employee compensation can be used to align these interests and goals.
How Do Pay Sorting Effects Influence Labor Force Composition?
It is possible that an organization that links pay to performance may attract more high performers than an organization that does not link the two. There may be a similar effect with respect to job retention.19 This effect on workforce composition is sometimes referred to as a sorting effect.
Pay-for-Performance Programs
Differentiation in Performance and Pay
The amount of differentiation that makes sense will depend on the level of interdependence and cooperation desired in a particular context.
Differentiation Strength/Incentive Intensity: Promise and Peril
A key decision in designing pay-for-performance plans concerns incentive intensity, the strength of the relationship between performance and pay
Types of Pay for Performance: An Overview
+ Merit pay programs, annual base pay increases, are usually linked to performance appraisal ratings.+ Merit bonuses, a form of variable pay, is its ability to define and reward a broad range of performance dimensions.+ Individual incentives reward individual performance, but with two important differences. First, payments are not rolled into base pay. They must be continuously earned and re-earned. Second, performance is usually measured as physical output rather than by subjective ratings.+ Profit sharing, payments are based on a measure of organization performance (profits), and the payments do not become part of the base salary.+ Ownership (including stock options).+ Gainsharing programs offer a means of sharing productivity gains with employees.+ Group Incentives and Team Awards.
Managerial and Executive Pay
Process and Context Issues
Employee Participation in Decision Making
Involvement in the design and implementation of pay policies has been linked to higher pay satisfaction and job satisfaction, presumably because employees have a better understanding of and greater commitment to the policy when they are involved.
Communication
Most pay-related communications come through individual discussions with one’s supervisor, still ahead of the company website, e-mail, and discussions with the human resource department.
Pay Structure Decisions
Introdution
+ Pay structure entails a consideration of pay level and job structure. + Pay level is defined here as the average pay (including wages, salaries, and bonuses) of jobs in an organization. + Job structure refers to the relative pay of jobs in an organization.
Developing Pay Levels
Market Pressures
1/ Product Market Competition2/ Labor Market Competition
Employees as a Resource
Because organizations have to compete in the labor market, they should consider their employees not just as a cost but also as a resource in which the organization has invested and from which it expects valuable returns.
Deciding What to Pay
Efficiency wage theory is when organizations have technologies or structures that depend on highly skilled employees.
Market Pay Surveys
To compete for talent, organizations use benchmarking, a procedure in which an organization compares its own practices against those of the competition:+ Rate ranges permits a company to recognize differences in employee performance, seniority, training, and so forth in setting individual pay.+ Key jobs (also known as benchmark jobs) have relatively stable content and—perhaps most important—are common to many organizations.+ In contrast to key jobs, nonkey jobs are, to an important extent, unique to organizations.
Developing a Job Structure
One typical way of measuring internal job worth is to use an administrative procedure called job evaluation.+ A job evaluation system is composed of compensable factors and a weighting scheme based on the importance of each compensable factor to the organization.
Developing a Pay Structure
1/ Market Survey Data.2/ Pay Policy Line.3/ A third approach is to group jobs into a smaller number of pay classes, pay ranges, or pay grades.
Monitoring Compensation Costs
One frequently used index of the correspondence between actual and intended pay is the compa-ratio.
Globalization, Geographic Region, and Pay Structures
The Importance of Process
Participation
Employee participation in compensation decision making can take many forms.
Communication
The importance of communication was found in a study of how an organization communicated pay cuts to its employees and the effects on theft rates and perceived equity.
Challenges
Problems with Job-Based Pay Structures
1/ Encourage bureaucracy.2/ The structure’s hierarchical nature reinforces a top-down decision making and information flow.3/ The bureaucracy required to generate and update job descriptions and job evaluations can become a barrier to change.4/ The job-based pay structure may not reward desired behaviors.5/ Discourage lateral employee movement.
Responses to Problems with Job-Based Pay Structures
1/ Delayering and Banding.2/ Paying the Person: Pay for Skill, Knowledge, and Competency.
Government Regulation of Employee Compensation
Equal Employment Opportunity
Comparable worth (or pay equity) is a public policy that advocates remedies for any undervaluation of women’s jobs.
Minimum Wage, Overtime, and Prevailing Wage Laws