ISSUES IN COMPENSATION CONFIDENTIAL V/S OPEN CONSOLIDATED V/S COMPENSATION STRUCTURE NUMBER OF GRADES WIDTH OF SALARY BRACKETS DIFFERENTIALS

LS DEGREE OF OVERLAP OCCUPATIONS/JOBS WHICH ARE INCLUDED IN THE STRUCTURE ?

NUMBER OF PEOPLE EMPLOYED IN JOB ?

EACH

 WHAT IS PAID TO EACH

INDIVIDUAL?

WHAT METHOD OF JOB EVALUATION, IF ANY, IS USED ? WHAT ARE THE ARRANGEMENTS, IF ANY, FOR BONUS PAYMENTS OR PROFIT SHARING SCHEMES ? WHAT ARE THE BENEFIT ENTITLEMENTS, VIZ. PENSION, SICK PAY, HOLIDAYS, COMPANY CAR, MEDICAL INSURANCE, , LOAN SCHEMES, ETC. ? WHAT GENERAL INCREASES HAVE TAKEN PLACE OVER, SAY, THE LAST THREE YEARS ?

SALARY

PROGRESSION

IS THERE A CONSISTENT METHOD FOR PROGRESSING SALARIES ACCORDING TO MERIT OR EXPERIENCE WITHIN SALARY GRADES ?

IF A VARIABLE INCREMENTAL SYSTEM IS IN USE, ARE THERE GUIDELINES WHICH INDICATE THE RATES AT WHICH INDIVIDUALS CAN PROGRESS ?
HOW DO YOU INCREASE TAKE HOME PAY KEEPING COST TO THE COMPANY SAME CAN YOU UNDERTAKE COMPENSATION RESTRUCTURING

 HOW DO YOU FIX COMPENSATION OF COMER

NEW

HOW DO YOU PAY HIGH TO HIGH PERFORMERS, CRUCIAL TECHNICAL STAFF, HIGH EDUCATIONAL BACKGROUND HOW DO YOU UNDERTAKE TAX PLANNING FOR COMPENSATION SHOULD WE BE COMPENSATION LEADER

SHOULD WE REDUCE OUR LABOUR COST PER UNIT OUTPUT TO MEET PRESSURE ON PROFIT MARGINS DUE TO COMPETITION

 WHAT IS THE BEST METHOD TO KNOW COMPETITORS WAGE/ COMPENSATION SURVEYS THROUGH OWN EFFORTS CONSULTANTS CLUBS

WHAT SHOULD BE THE BASIS OF SELLING PAY PACKAGE TO EXISTING & NEW EMPLOYEES GROSS- COST TO COMPANY- TAKE HOME TAXABLE

SALARY

CONTROL

ARE INDIVIDUAL SALARY REVIEWS PROPERLY CONTROLLED TO KEEP WITHIN BUDGETS AND TO BE CONSISTENT WITH SALARY PROGRESSION GUIDELINES ? ARE THE AUTHORITIES TO AGREE INCREMENTS, AWARD PROMOTION INCREASES AND TO FIX SALARIES ON ENGAGEMENT OR TRANSFER CLEARLY DEFINED?

ARE THERE ESTABLISHED PROCEDURES FOR : (a) GRADING OF JOBS WHICH ENSURE THAT THE JOBS ARE PROPERLY EVALUATED AND GRADE DRIFT IS PREVENTED
(b) DECIDING ON THE TIMING AND AMOUNT OF PROMOTION INCREASES (c) FIXING SALARIES ON APPOINTMENT OR TRANSFER ?

 WHAT MERIT INCREASES HAVE BEEN GIVEN TO STAFF ?

HOW DOES THE COMPANY ASSESS ITS COMPETITIVENESS IN THE LOCAL AND NATIONAL LABOUR MARKET ? WHAT ARE THE SALARY ADMINISTRATION PROCEDURES USED FOR FIXING SALARIES, CONDUCTING SALARY REVIEWS, GRADING JOBS, HEARING APPEALS AND CONTROLLING COSTS ?

 WHO IS RESPONSIBLE FOR SALARY ADMINISTRATION ? HOW MUCH INFORMATION ON SALARIES IS COMMUNICATED TO STAFF ?

WHAT IS THE ATTITUDE OF STAFF IN GENERAL AND ANY TRADE UNIONS OR STAFF ASSOCIATIONS TO THE SALARY POLICIES OF THE ORGANISATION?

TOTAL REMUNERATION

IS SUFFICIENT ATTENTION

PAID TO :

(a) THE TOTAL MIX OF SALARIES AND OTHER BENEFITS WHILE CONSIDERING REMUNERATION LEVELS

(b) GIVING EMPLOYEES A REASONABLE DEGREE OF CHOICE OR INFLUENCE OVER THE BENEFITS THEY PREFER?

EMPLOYEE BENEFITS

IS THE LEVEL OF BENEFITS ADEQUATE IN RELATION TO WHAT IS PROVIDED ELSEWHERE ? IS THERE ANY SCOPE FOR INTRODUCING NEW BENEFITS ?

BONUS

SCHEMES

(a) IS THE AMOUNT OF BONUS SUFFICIENTLY HIGH TO ACT AS A MOTIVATOR ? (b) HAVE BONUS EARNERS A REASONABLE DEGREE OF CONTROL OVER THE RESULTS WHICH DETERMINE BONUS LEVELS ? (c) DO BONUS ANY AREAS EARNINGS SEEM EXCESSIVE IN IN RELATION TO PERFORMANCE ?

(d) DO BONUS EARNINGS FLUCTUATE TOO MUCH ? (e) ARE AVERAGE BONUSES TOO HIGH IN TO BASIC SALARY ? (f) IS THE SCHEME AND UNDERSTAND ? EASY RELATION

TO ADMINISTER

SALARY PROBLEMS

WHICH, IF ANY, OF THE FOLLOWING PROBLEMS EXIST ? (a) REDUCED DIFFERENTIALS (b) GRADE DRIFT: UPGRADINGS TAKING PLACE WITHOUT SUFFICIENT JUSTIFICATION (c) SALARY DRIFT: AVERAGE SALARIES IN GRADES SIGNIFICANTLY ABOVE THE MIDPOINT (d) INEQUITIES : SIMILAR JOBS GRADED DIFFERENTLY

(e) ANOMALIES : TOO MANY CASES WHERE HIGHER GRADINGS HAVE BEEN GIVEN TO INDIVIDUALS THAN WOULD BE JUSTIFIED BY JOB EVALUATION BECAUSE OF SPECIAL CIRCUMSTANCES (VIZ. RECRUITMENT DIFFICULTIES )

(f) SALARY PRACTICE DIFFERING FROM SALARY POLICY : SALARIES GENERALLY OR IN SOME CATEGORIES LAGGING BEHIND, OR FAR AHEAD OF MARKET RATES

(g) AN INADEQUATE OR INAPPROPRIATE JOB EVALUATION SYSTEM

(h) UNSYSTEMATIC PROCEDURES FOR COMPARING SALARY PRACTICES WITH MARKET RATES (i) SALARY PROGRESSION PROCEDURES TOO RIGID, TOO FLEXIBLE, TOO COSTLY OR NOT PROVIDING THE RIGHT REWARDS TO THE RIGHT PEOPLE (j) SALARY REVIEWS UNCOORDINATED OR UNCONTROLLED, LEADING TO ANOMALIES AND EXCESSIVE COSTS.

SALARY AUDITS

ARE REGULAR AUDITS CARRIED OUT TO CHECK ON :

(a) THE EXTENT TO WHICH MATCH MARKET RATES SALARIES

(b) THE EXISTENCE OF EARNINGS AND GRADE DRIFT AND ITS CAUSES (c) THE EFFECTIVENESS OF SALARY CONTROL PROCEDURES (d) THE EFFECTIVENESS OF THE JOB EVALUATION SCHEME (e) THE GRADINGS OF BENCHMARK JOBS ?