EmployeeCompensation and benefits

1
Compensation

• Muhammad Adeel Fakhar Husnain

2
Agenda

• What is Compensation
• Different Types of compensation
• Weight Effect of Compensation Policy for an
  organization

3
What is Compensation ?

• Employee compensation refers to the benefits
  (cash, vacation, etc.) that an employee receives
  in exchange for the service they provide to their
  employer.

4
Types of Compensation

• Cash Compensation
• wages or Salaries
• Retirement Plans
• Paid Leaves
• Life Insurance
• Disability insurance

5
Cash Compensation

• Cash Compensations are all cash payments earned
  by an employee in the form of wages , salaries,
  overtimes Etc.
• TCC (Total Cash Compensation)
• Cash Payments earned within a year of full-time
  employment

6
Retirement plans

• A retirement plan is a financial arrangement
  designed to replace employment income upon
  retirement. These plans may be set up by
  employers, insurance companies, trade unions, the
  government, or other institutions.

7
Paid Leaves

• Paid leaves are generally a pre-determined number
  of paid leaves an employer offers to employees,
  every year. This leave is treated more like a
  benefit from the employee's point of view.

8
Life Insurance

• sum of money either on the death of the insured
  person or after a set period.

9
Disability Insurance

• periodic payments of benefits when a disabled
  insured is unable to work
• The insurance product is designed to replace
  anywhere from 45 to 65 of your gross income on a
  tax-free basis

10
Effect on Organization

• Employee Motivation
• Effectiveness in attracting new Talent
• Cost Effectiveness

11
Cost Effectiveness Ratio

• 
  Costnew strategy - Cost Current
  Practice
• Cost Effectiveness Ratio
  -------------------------------------------------
• 
  Effectnew strategy - EffectCurrent
  Practice

12
Questions ?
13
References

• Images
• http//www.google.com.pk/
• Contents
• http//study.com
• http//drive.google.com
• http//www.differencebetween.net
• http//slideshare.net