BATCH 2020 – 2022

SEMESTER 3

ASSIGNMENT – 1

COURSE: EMPLOYEE REWARD MANAGEMENT

SUBMITTED TO –
Dr. UMA WARRIER

SUBMITTED BY –

NAME KRUTHIKA.V

USD. NO 20MBAR0419

SECTION FHRM
 LINKEDIN LEARNING CREDIT COURSE KEY TAKE-WAY POINTERS:

“Whether you’re an employee or an employer pay is a serious issue. As an employer, you

want to make sure that you can defend every decision you make and the main concern of
your employees is that they’re being paid fairly for what they contribute”.
- Wayne Cascio

HR expert Wayne Cascio, in this course provides an overview of the strategic choices that
employers must make when developing a total rewards system. Total compensation refers to
monetary compensation as well as benefits. Base pay refers to monetary compensation paid
by employer for work performed by an employee. Merit Increase is an addition to base pay
based on past performance. Merit bonus is a one-time lump sum paid to employee based on
past performance. Short-term incentives are one-time payments that do not increase base
wage and must be re-earned each period, Bonus and commission are few examples of short-
term incentives. Long-term incentives are payments based on multiyear results such as stock
grants or options to buy stock at a fixed price.
In business setting strategy refers to the decision, processes and choices firms make to
position themselves for long-term success. If an employee is going to be a part of company’s
long-term success, its important to understand the connection between the organisation’s
competitive strategy and compensation strategy.
One needs to get competent legal advice to ensure you are compliant with all laws and
regulations. Laws exist to ensure fair treatment of employees with respect to pay, safety nets
for the unemployed, and protection from exploitation. These laws provide a broad outline of
compensation related legal requirements. Some of the laws are,

The fair labour standards Act:

Equal pay Act:

Title VII of the civil rights Act:

The Family and medical leave Act:

Pay structure:
Pay structure for different levels of employees are determined sued some of the below
mentioned methods, Direct market pricing, Rank order and Point method.
Jobs are sorted into broader job families, for example, engineering, marketing and resulting
rank order of jobs by job family yields a job structure.

External Competitiveness in compensation and benefits:

To attract, retain, and motivate talent employer must think carefully about the kinds of talent
they need to hire and the firm’s ability to pay that talent, its about developing a labour budget
and a pay structure that will allow the firm to compete in the market.
Pay surveys are extremely helpful to companies including a small electronic device business.
The survey will help the employer to set a competitive rate of pay and allow to hire the best
talents and retain them for long-term.

Employee benefits:
Life is uncertain and a serious injury prolonged illness, or death of a breadwinner could easily
wipe out a lifetime of savings and assets. Any of those events could place a family in debt for
years. To help protect employees, and indirectly the employer’s business they need to offer
employees two essential benefits, Life insurance and Health insurance.
Almost three quarters of all employers offer a 401k or similar plan to their employees all of
that money is tax sheltered until retirement. When employees retire and start withdrawing
money the money is taxed as ordinary income.