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2014

COMPENSATION

[Company name] 4/9/2014

ACKNOWLEDGEMENT

The sense cantonment and elation that accompanies the successful completion of the Project would be incomplete without mentioning name of the people who helped the in accomplishment this project, people whose constant support and encouragement resulted in this realization. We Group 2 take this opportunity to thanks Honorable Sr. Director Sunil Sharma for providing healthy environment in our college, which helped us in concentrating on the task. We thank our Chairperson of Department Prof. Sanjay Srivastava and all the faculty members, teaching and non- teaching for helping the group during the project. We will be failing in our duty if we do not pay regard to our guide and mentor Prof. Sonika Sharma for the guidance and inspiration he gave during the course of completion.

MADE BY(GROUP 5TH)


AMAN AILAVADI -0045 AMIT DASMANISH JHA NEHA GULATI NIDHI KURIAN-0018 NANDAN PRASHANT PATNI

Types of Compensation
The total compensation offered to an employee may be broken down into direct, indirect and intangible compensation. Direct compensation involves monetary payments to employees for time worked or results obtained. Indirect compensation involves expenditures made by an employer on behalf of all employees and are typically called "fringe benefits". Intangible compensation involves non-monetary rewards. Direct Compensation Components

Base salary Premium payments (overtime, shift differentials, longevity pay.) Contingent programs (incentive plans or achievement award, merit pay) Indirect Compensation Components

Protection programs (Social Security, Worker's Compensation, Unemployment Compensation, pension plans, health, dental, vision, life, accidental death and long term disability insurance.) Paid Leave (vacations, holidays, jury duty, sick leave, military leave.)

Compensation Philosophy
Identifies target market position for competitive pay levels and articulates the company s commitment to motivating, and rewarding employee contribution and performance through the various elements of the company s total pay system. Base Pay: Pays for standard job duties, skills and results. Should be designed to reflect competitive rates for comparable jobs within identified marketplace. Performance Based Variable Pay:

Designed to reward achievement of specific company and/or individual performance objectives. Payouts vary based on company and/or individual achievement. Types of variable pay plans include: *Skill pay *Incentive pay/bonus plans *Commission *Gain sharing/results sharing Long Term Incentive Compensation: Designed to reward long term company performance. Individual job level/performance may impact eligibility to participate. Can be an effective retention tool. Benefits Broad range of practices including health insurance, vacation, leave policies, and retirement and savings plans. Designed to address health and welfare needs of employees. Can send strong messages about company culture and values. Perks & Non-Cash Rewards Used to recognize exceptional contribution, performance, commitment to culture and values. Variety of methods including additional time off, tickets to events, trips, dinners, public recognition, etc. Intrinsic Rewards: *Performance Feedback Management *Development Opportunities *Work Environment Processes used to communicate and align employee behaviors with business

priorities and company values to achieve desired results. Play a significant role in successfully engaging full scope of skills and abilities within the workforce. Critical in retaining key talent.
Here are some of the most typical components of compensation: Base salary. This is what youll get paid on a regular basis, and you want to check market information to make sure you are paid equitably for what you contribute. In addition to just the salary number, look at growth potential and also timing of increases. Getting a salary increase at the six-month mark rather than year-end is money in your pocket. Bonus. Bonuses can be paid when you accept a job (sign-on bonus), as part of a merit-based plan (performance bonus) or as part of company-wide plan (profitsharing bonus). Sometimes, you can get all of these. Salespeople or other commission-based jobs may get bonuses for meeting certain targets. Even if your type of job isnt normally eligible for a bonus, ask for one when you go above and beyond your current responsibilities. If you are eligible for a bonus, understand the criteria for how it is determined, and make sure your contributions are welldocumented and known during the determination period. Ownership stakes. Some people, typically the highest executives, get outright equity. Some companies give out options that are tied to the value of the company, so it is not ownership in the legal sense of the word, but your financial fate is tied to the companys. Equity and options are different types of compensation than base and bonus, so dont necessarily assume you need to trade one for the other. Benefits and insurance. Medical, dental, life insurance, and disability are just some of the benefits some people get in their compensation package. Pay attention to when you become eligible. Some plans allow you to take your benefits elsewhere (this is portability, and there is a fee but it does provide flexibility). If you arent comfortable with all the terms in your company plan, make a friend in HR and have them explain it to you over lunch. They can likely give you some insider tips on how to get the most of what the company offers. Employee perks. Discounted movie tickets, free admission to cultural venues, discounted cell phone plans, and employee assistance hotlines are some perks that I have seen that many employees overlook. These represent significant savings and therefore real money to you. Dont just gloss over company newsletters or

announcements. There could be a program or discount for you. Research the company policy book or intranet to make sure you havent missed anything. Lifestyle and flexibility. Its not just about working from home. You might ask for a four-day schedule or full-time but different start and end times or a sabbatical. Companies often make these arrangements on a case-by-case basis, but many times there is something outlined about the broad policy. Make sure youre not missing anything. Even if you have a straightforward compensation plan right now, recognize that there are other ways to earn your salary. Pay attention to opportunities to earn more by going after some items from each of the above categories. When you have your next salary review or go for a new job, remember that there are many elements of compensation available to you for negotiation.

NESTLE- Good Life Good Food Nestl is the world's leading Nutrition, Health and Wellness company. Our mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. The Company was founded in 1866 by Henri Nestl in Vevey, Switzerland, where our headquarters are still located today. We employ around 2,80,000 people and have factories or operations in almost every country in the world. Nestl sales for 2009 were CHF 108 bn. The Nestl Corporate Business Principles (pdf, 1 Mb) are at the basis of our Companys culture, developed over 140 years, which reflects the ideas of fairness, honesty and long-term thinking. Nestl India is a subsidiary of Nestl S.A. of Switzerland. With eight factories and a large number of co-packers, Nestl India is a vibrant Company that provides consumers in India with products of global standards and is committed to longterm sustainable growth and shareholder satisfaction. The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'. EMPLOYEE RELATION POLICY Since its founding, Nestl has built a culture based on the values of trust, mutual respect and dialogue. Nestl management and employees all over the world work daily to create and maintain positive individual and collective relationships, and are expected to do so as a core part of their job. To foster this culture as a competitive advantage, the Nestl Employee Relations Policy provides a frame of

reference for the collective relationships with trade unions and other employee representatives based on the human rights and labour practices chapter of the Nestl Corporate Business Principles and on the Human Resources Policy. To foster this culture as a competitive advantage, the Nestl Employee Relations Policy provides a frame of reference for the collective relationships with trade unions and other employee representatives based on the human rights and labour practices chapter of the Nestl Corporate Business Principles and on the Human Resources Policy. Some of the policies they have are:1. A company trusted by its employees and stakeholders 2. A proactive & focused approach 3. Corporate culture 4. Corporate labour priorities 5. Compliance 6. Collective dialogue 7. Collective negation 8. Collective social dialogue Some of the benefits are: Rewards linked to performance Skill Based Compensation To keep up disciplined compensation programs that keep up a long term relationship with employee To position itself as an employer offering remuneration levels above the benchmark level Nestl offers APEX Mother dairy

Mother dairy
Indias national milk supplier Mother Dairy wanted to consolidate its localized and standalone HR applications on one platform. We deployed our cloud-based Human Capital Management (HCM) Platform to provide a centralized, webenabled platform, with standardized and consolidated HR policies and processes and an integrated employee and manager self-service portal, across the 17 locations of the organization. Our solution helped Mother Dairy achieve functional improvements, cycle time reductions and productivity gains. Some of the policies and benefits enjoyed by the employees are:

Our solution resulted in the following business benefits for Mother Dairy:

1. Increased employee satisfaction due to the availability of 24x7 employee self-service facilities and improved response time on people processes 2. Productivity gains obtained in payroll processing, time data management, attendance registers management, PF trust and loan process management 3. Major cycle time improvements in employee query resolution, claims processing, new employee joining, resignations and off-cycle claims processing 4. Improved insights into organization-wide data and effective decision-making using a single source of employee information for all locations

5. Enhanced control over access to sensitive HR data and greater adherence to statutory requirement

NESTLE vs MOTHER DAIRY Nestle Pay package for entry level Compensation Paid holidays Pension scheme Relocation Expense Paid sick leave HRA PF Marriage Gifts INR 2.6lac to 6.26lac Mother dairy

INR 2.7lac to 4

Performance based Yes once a year No Available Available Available Available Available

Experience bas No Yes Not available Available Available Available Not Available