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Compensation Objectives & Policies Factors Affecting Wage Mix Finnish Regulation Salary & Incentives Structures Benefits Conclusion

      Pay market-competitive compensation Achieve internal & external pay equity Ensure fair employee treatment Promote open & understandable pay practices Comply with all governmental compensation regulations Promote pay-for performance standards .

    Mesh employees’ future performance with organizational goals Control the compensation budget Attract new employees Reduce unnecessary turnover .

bonuses Long-term incentives – stock plans Indirect compensation.        Pay-for performance standard No pay secrecy – open policy Different compensation options/plan for each level of managerial employee Competitive base salary (merit pay program) Short-term incentives . etc .general benefits Nonfinancial compensation –perks eg: employee recognition program. special relocation benefits.

     Internal factors BPO’s compensation policy Worth of a job – job evaluation Employee’s relative worth in meeting job requirements BPO’s ability to pay .

      External Factors Labor market condition Area wage rates Collective bargaining cost of living legal requirements .

250/year) –Night. child labor law.•Equal rights law. •No legislated minimum wage •Paid vacation •Parents and family take-off •40h/week –Over time salaries (138h/4 moth.and shift work bonuses . etc.

000 .     (Assistant Facility Manager) Facility Manager Regional Manager Functional Managers CEO : € 3.500 : € 10.500 : € 6.000 : € 7.000 : € 4.

 Profit-sharing plan is intended to give all employees the opportunity to increase their earnings by contributing to the growth of organization -can help to stimulate employees to think and feel more like partners and provide better service -increases motivation .

 Profits may be result of factors which employees have no control  Economic conditions  National emergencies  If program fails to pay for several years in a row can cause adverse effect on productivity and employee morale .

   5% of facility growth is shared between facility manager (and assistant facility managers) 1% of regional growth is given for regional managers Paid half yearly .

12.   Stock option plan grants to employee the right to purchase a specific number of shares of the company’s stock at a guaranteed price during a time of period Price of option: -10% market closing price 30. If the price rises then the option occurs .

  Only for top management Option amount equal to year salary -> €50.000]=€65.000 .1 (growth of stock price) €40.000 SOP*1.000 (base salary) + [€50.

Assistant facility Manager 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 200000 500000 1000000 1500000 Assistant facility Manager 2000000 .

Facility Manager 7000 6000 5000 4000 3000 2000 1000 0 200000 500000 1000000 1500000 2000000 Facility Manager .

Regional Manager 14000 12000 10000 8000 6000 4000 2000 0 200000 500000 1000000 1500000 2000000 Regional Manager .

 Additional benefits vary among the countries. Flexible benefits plans (cafeteria plans)  Benefit plans that enable individual employees to choose the benefits that are best suited to their paricular needs.  Core benefits are provided in all countries. .

     Improve employee work satisfaction Meet employee health and security requirements Attract and motivate employees Reduce turnover Maintain a favorable competitive position .

     Health care Day care Cellular phone Food services Housing and moving expenses .

   Company car Free time activities Discounts on goods and services purchased at the company’s store .

  Education for children Additional health care services   Free time activities Discounts on goods and services purchased at the company’s store .

General guidelines for compensation that are equal in every region  Wages adjusted based on the economic conditions       labor market conditions local wage rates living costs legal requirements collective bargaining   Bonus system Flexible benefits package .

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