TYPES OF EMPLOYMENT

AND
COMPENSATING HUMAN
RESOURCE
LILIAN FREDELUCES
TYPES OF EMPLOYMENT
 Regular Employment
 Probationary Employment
 Part-time employment
 Commission-paid employment
 Casual Employment
 Contractual Employment
 COMPENSATING
HUMAN RESOURCES
Objectives of compensation

Compensation is the set of rewards that organizations provide to individuals in return for their
willingness to perform various jobs and tasks within the organization. It includes all forms of financial
returns and tangible services and benefits employees receive as part of an employment receive as part of an
employment relationship. It also includes various elements such as base salary, incentives, bonuses,
benefits, and other rewards.
The objective of compensation is to create a system of rewards that is equitable to the employer and
employee alike. The desired outcome is an employee that is attracted to the work and motivated to do a
good job for the employer.
The following are suggestion to make the compensation policy more effective.
1. Adequate to meet the needs of the employees and to acquire and retain qualified personnel.
2. Equitable – each person should be paid fairly, in line with his/her efforts, abilities, and training.
Employees will believe their pay is equitable when they perceive the ff. circumstances. a.) It
is fair relative to the pay coworkers in the same organization receive. b.) It
is fair relative to the pay received by co-workers in other organizations who hold similar positions
c.) It fairly reflects their input or
contribution to the organization.
3. Balanced – pay benefits and other rewards should provide a reasonable total reward package.
4. Cost effective – taking into consideration the company’s ability to pay
5. Secure – pay should be enough to help an employee feel secure and aid him/her in satisfying basic needs.
6. Incentive-providing – pay should motivate effective and productive work or reward desired behavior.
7. Acceptable to the employees should understand the pay system being followed by the company and
should feel it is reasonable for the organization and for him/her.
8. Compliant with legal regulation.
Main Components of Compensation

  Direct compensation consists of cash directly paid to the employee in exchange for his/her work.
1.Base pay – the hourly wage or weekly/monthly salary earned Premium pay – refers to the
additional compensation
2.Premium Pay - refers to the additional compensation required by law for work performed within 8
hours on non-working days, such as rest days and specials days.
3.Base pay progression - movement of base pay overtime, from year to year.
4.Variable pay - incentive or bonus pay that does not fall into base pay.
Wages vs Salaries
Wages – refer to hourly compensation paid to skilled and unskilled workers or those performing blue-collar
jobs, with time as the basis in the computation
Salaries – refers to the income paid to an individual not on the basis of time but on the basis of performance.
Salaries are usually given to professional compensates an individual not for how much time he/she spends in
the organization, but for his/her overall contribution’s performance.

• Benefits and Perquisites or perks – addition to direct cash, compensation is also paid in the form of
indirect cash or benefits that have monetary value.
• Indirect compensation – quality of work life.
a. Organizational culture – the norms and values defining appropriate behavior in the organization.
b. Intrinsic values – rewards inherent in the work itself.
c. Career opportunities – the prospects for development and growth.
THANK YOU!!!