Recent Trends in

Compensation
Management

TYBMS E
 Salary Progression Curve

Salary progression curves are also known as maturity curves

or career curves. They aim to link increases in salary over a
fairly long period to increased maturity or experience. They
are best used for professional, scientific or other highly
qualified staff.
It is also possible to have more than one rate of
progression to reward the employees based on their potential
and actual performance.
 Golden Parachute
Golden Parachute are the benefits provided to top executives, that provides income when the
person is terminated or forced out from the company. Sometimes there is a legitimate concern
that the executives might be forced out. Golden Parachute is also known as severance package or
Termination agreement. It is termed that because it provides soft landing for termination
executive.

Example
1. A Combined Company can't have 2 CEO.
2. In Other Case the CEO is Forced out because of poor Performance.
Mental Health and Wellness Support
Here are specific ways companies can support employee mental
health:
 “No-meeting days" on that particular day.
 Team workshops or sessions for employees.
 Offer a flexible health and wellness stipend. 

By these benefits, employers can help and attract new talented

employees.
New Pay
 Competency skill based pay and broad banding are the two examples now called as new pay.
 Lum sum payment is made for meeting one’s goals
 Base pay, pay for performance and options
Competency and Skilled Based
Pay
 A system that defines specific skills and process that determines persons pay
based on his or her competency.
 Training system through which employees can acquire skills.
 A formal competency testing system.
 Work design that lets the employee move along the jobs with flexible work
assignments.
E - Compensation
 E- Compensation represents a web enabled approach to a series of compensation
tools that enables an organization to gather store, edit, analyse, utilise and
distribute the compensation data and information.
 Benefits of E-compensation
 Easy accessibility.
 Round-the-clock availability.
 Streamline process.
 Reduce cost and faster turn around.
 Improving communication.
Location Based Salary
Location-based pay is wages given to an employee based on
the standard market rate for the employee’s location, such as
his or her city, state, or even country – in addition to the
company’s own pay philosophy and other factors, such as
the employee’s experience level and expertise. 
Cafeteria Approach
 A cafeteria plan is an employee benefit plan that allows staff to choose from a
variety of pre-tax benefits. Employees can contribute a portion of their gross
income before any taxes are calculated and deducted. Plans normally include
options such as insurance benefit and benefits that help employees with various
life events such as adoption.
Home Office Reimbursement
Work-from-home reimbursements allow employers to help
cover some costs employees incur when they work
remotely.

 One time lump sum

 Monthly stipend
 Ongoing, flexible WFH stipend

 Specify which cost counts

 Choose a reimbursement request process
 Decide how to provide reimbursement
Broad Banding
Broad banding is the combination of a number of related job classifications into a single pay band, for
which a broad range of compensation levels is allowed. This approach gives management a wider pay range
within which to pay employees.
Advantages: Greater amount of latitude in setting compensation levels for people whose skill levels are
higher.
Disadvantages: Total compensation expense will likely increase and resentment.
Conclusion
 By considering these benefits, employers can help attract new talent and show
support for current employees who have stayed through a challenging year. There
are many ways to implement these types of benefits and Compensation is one of
them. Compensation is employee stipend and rewards software that helps
companies offer fully customized stipends for health and wellness, learning,
family, and more. Compensation streamlines monthly payroll reimbursements,
ensures tax-compliance, and automates employee communications.