COMPENSATION

MANAGEMENT

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 Fair and appropriate compensation
system
 Factors influencing organisation
compensation system
 Payroll management
 Payroll management structure

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Why do you need to
work

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 Started with barter system

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Definition

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 Compensation systems
 compensation
 direct financial compensation
 indirect financial compensation
 Noncompensation /nonfinancial
compensation

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 Compensation
 Total of all rewards provided employees in return to their
services.
 direct financial compensation
wages, commissions, bonuses
 indirect financial compensation
 Nonfinancial - recognition
• Both the extrinsic & intrinsic reward employee receives
for performing their job (Martocchio, 2006)
• Extrinsic – monetory & non-monetory
• Intrinsic – reflects employees’ psychological
mindset
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Advantages

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 Fair and appropriate compensation
system

 Balance between what the organization can

offer vs what employees think is equitable

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 Factors influencing organisation
compensation system

 Internal factors
i. Financial strength
ii. Employee’s factors
iii. Other benefits
iv. Internal equity
v. Job complexity

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 External factors

i. Labour market –compensation survey

ii. Economic factor - COLA
iii. Competitors influences
iii. Legislative and union constraints
iv. Social trend
v. Technology

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 http://www.payscale.com/research/M
Y/Job=Human_Resources_(HR)_Man
ager/Salary

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Compensation analysis
 http://www.intel.com/jobs/malaysia

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Payroll management
 The administration of the financial
record of employees' salaries, wages,
bonuses, net pay, and deductions.
 Basically used to build an application
program, that a company uses to
manage the records of the employees
working in the company
 Legal right - administration

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NRS & MRS
 Compensation elements?

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Mandatory benefits
 Work Act/ Akta Pekerjaan
 EPF Act/ Akta KWSP
 Social Security Act/ Akta Keselamatan
Sosial

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Software
 eBOS Technologies
 Paramount software
 HR technology partners
 Elixtra

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 The End

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