INTRO TO C&B,

PAYROLL

E-BOOK

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management-specialist

NEXTGEN HR – HR & PAYROLL EXPERTS

 Compensation, Benefits &
Payroll Concepts Intro
What is Compensation?

Compensation refers to the remuneration that an employee receives in

return for his/her services to the organization. Compensation includes
everything an employee receives in return for his work such as wages,
salaries, allowances, bonuses, benefits and services.

What are Benefits?

Benefits cover indirect pay. This can be health insurance, stock options,
or any myriad of things offered to employees. All of these things are critical
in any job offer.
Two jobs that offer identical salaries may vary wildly in the benefits
category, making one a better financial proposition than the other.

Compensation as HRM Function

Compensation management is concerned with Designing and
Implementing a Total Compensation Package.

Compensation Management is the Human Resource

Management function that deals with every reward/remuneration that
employees receive.
Objectives of compensation management are:-
*Acquire highly qualified talent
Comply with legal regulations
* Retain current employees
* Ensure equity
* Reward desired behavior
* Control costs
* Consistency in Compensation
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management-specialist
 NEXTGEN HR
TOP HR SKILLS

https://www.nextgenhr.co.in/page/compensation-benefits-payroll-
management-specialist
 How is Compensation
level Determined??

1. Create or update job descriptions for each position, based on

Job Analysis.
2. Determine the appropriate amount of compensation for each
grade/level. Factor in overtime.
3. Consider Industry Standards/Benchmarking.
4. Identify the allowances, benefits, and incentives that you will
provide.
5. Detail your decisions in a document (Compensation Policy)

Why HR professionals need to be proficient in

Compensation Benefits?!

• Outdated Compensation Benefits Packages = Dissatisfied

Employees due to high taxation or Allowances / Benefits
which are not used by employees
• Lack of Compensation Payroll Knowledge = Legal Hassles
for organization.
• Unable to answer employee queries!
• Less career growth options & less pay!

https://www.nextgenhr.co.in/page/compensation-benefits-payroll-
management-specialist
 Compensation & Payroll Management as career

• HR Generalists need to have proficiency in all areas of HR including

Payroll, Benefits and Compensation. In small companies HR Generalist
will handle all C & B activities, co-ordinate Payroll.

• Compensation and Benefits Managers who will create compensation

policy, compensation structures, select allowances, benefits, and other
plans, determine pay ranges, align with compliances

• Payroll Managers / Administrators who will take care of the entire Payroll
processing on a regular basis and ensure timely payment and records
maintenance, with statutory compliances.

UNDERSTANDING PAYROLL MANAGEMENT CONCEPTS

Payroll v/s Salary

Salary refers to the amount of pay or remuneration -- an employee earns.

Payroll refers to the system & process employers use to process salary
payments. It is a function of HR.

Compensation Management v/s Payroll Management

Compensation Management is a broad term wherein Compensation Manager

will be involved in determining Compensation Policy, Pay Ranges, Equity,
Ensuring Payroll, Compliance and so on..

Payroll Management/Administration can be said to be a subset of

Compensation Management wherein the Payroll Specialist / Manager is involved
in ensuring timely pay, with accurate calculations, time/leave management, co-
ordinate bank transfer with finance department and so on..

https://www.nextgenhr.co.in/page/compensation-benefits-payroll-
management-specialist
BECOME A COMPENSATION, BENEFITS &
PAYROLL ADMINISTRATOR

For complete guide on Compensation, Payroll and

Provident Fund along with Practical Excel Salary
Calculation and more..

Refer to our course “Become a Compensation,

Benefits & Payroll Specialist Challenge Course’
NEXTGEN HR
WWW.NEXTGENHR.CO.IN

For more details logon to :

https://NextGenHr.co.in/Page/UltimateHRGeneralist

https://www.nextgenhr.co.in/page/compensation-
benefits-payroll-management-specialist