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Questions and Answers
Employee rewards include all forms of pay or rewards going to employees and arising from their ______.
Employee rewards include all forms of pay or rewards going to employees and arising from their ______.
employment
Monetary rewards can be direct, such as wages and bonuses, or indirect, like retirement programs and ______.
Monetary rewards can be direct, such as wages and bonuses, or indirect, like retirement programs and ______.
insurance
Non-monetary rewards refer to programs established by employers to satisfy employees in terms of job content and job ______.
Non-monetary rewards refer to programs established by employers to satisfy employees in terms of job content and job ______.
context
A compensation system must comply with ______ requirements.
A compensation system must comply with ______ requirements.
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One of the reasons for employee rewards is to encourage motivation by providing a system that improves ______.
One of the reasons for employee rewards is to encourage motivation by providing a system that improves ______.
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To remain competitive in the labor market, organizations need to reward employees for ______ performance.
To remain competitive in the labor market, organizations need to reward employees for ______ performance.
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Job ______ can include aspects like enlargement, enrichment, and empowerment to improve employee satisfaction.
Job ______ can include aspects like enlargement, enrichment, and empowerment to improve employee satisfaction.
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To control the compensation budget, companies must ensure that the system is aligned with organizational ______.
To control the compensation budget, companies must ensure that the system is aligned with organizational ______.
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The ______ method ranks each job relative to all other jobs.
The ______ method ranks each job relative to all other jobs.
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The ______ method is a quantitative job evaluation procedure.
The ______ method is a quantitative job evaluation procedure.
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In the job classification system, jobs are classified and grouped according to predetermined ______.
In the job classification system, jobs are classified and grouped according to predetermined ______.
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The wage curve represents the relationship between the relative worth of jobs on the ______ axis.
The wage curve represents the relationship between the relative worth of jobs on the ______ axis.
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The ______ paid for jobs is determined by rates within the organization and by other organizations.
The ______ paid for jobs is determined by rates within the organization and by other organizations.
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The salary band for a Senior Manager starts from ______ RM per month upwards.
The salary band for a Senior Manager starts from ______ RM per month upwards.
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An Engineer is classified under a salary band of ______ to 5000 RM per month.
An Engineer is classified under a salary band of ______ to 5000 RM per month.
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The minimum salary for a Secretary is ______ RM per month.
The minimum salary for a Secretary is ______ RM per month.
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Employees whose compensation is computed on the basis of weekly, biweekly, or monthly pay periods are known as ______ workers.
Employees whose compensation is computed on the basis of weekly, biweekly, or monthly pay periods are known as ______ workers.
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A well-designed salary structure helps management to reward performance while controlling overall base salary ______.
A well-designed salary structure helps management to reward performance while controlling overall base salary ______.
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Factors affecting the pay mix include attraction, motivation, and ______ of good employees.
Factors affecting the pay mix include attraction, motivation, and ______ of good employees.
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A formal comparison of jobs to determine their worth relative to one another is known as ______.
A formal comparison of jobs to determine their worth relative to one another is known as ______.
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Discretionary benefits are often given to the jobholder in recognition of their ______ and function of the position.
Discretionary benefits are often given to the jobholder in recognition of their ______ and function of the position.
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To maintain internal and external pay equity, organizations often conduct a ______ survey.
To maintain internal and external pay equity, organizations often conduct a ______ survey.
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Once given, discretionary benefits are often difficult to ______.
Once given, discretionary benefits are often difficult to ______.
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Non-mandatory benefits can include various ______ like travel, meals, and housing.
Non-mandatory benefits can include various ______ like travel, meals, and housing.
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Symbols like skills, effort, responsibilities, and working conditions are referred to as ______ factors in job evaluation.
Symbols like skills, effort, responsibilities, and working conditions are referred to as ______ factors in job evaluation.
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Salary structures are important for ensuring pay levels for groups of jobs are competitive ______ and equitable internally.
Salary structures are important for ensuring pay levels for groups of jobs are competitive ______ and equitable internally.
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Healthcare benefits may encompass insurance plans for dental, optical, and ______ health.
Healthcare benefits may encompass insurance plans for dental, optical, and ______ health.
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The area from which employers obtain certain types of workers is referred to as the labor ______.
The area from which employers obtain certain types of workers is referred to as the labor ______.
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An employee assistance program provides counseling for a wide variety of ______ confronting employees.
An employee assistance program provides counseling for a wide variety of ______ confronting employees.
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For employers, administration of employee benefits can be time consuming and ______.
For employers, administration of employee benefits can be time consuming and ______.
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A work/life environment is created by offering services that balance employees' work and ______ needs.
A work/life environment is created by offering services that balance employees' work and ______ needs.
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Services such as food services and transportation pooling are examples of ______ services for employees.
Services such as food services and transportation pooling are examples of ______ services for employees.
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The EPF is a compulsory savings system for workers to prevent them from becoming ______ once they retire.
The EPF is a compulsory savings system for workers to prevent them from becoming ______ once they retire.
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Employers must deduct the EPF contributions from employees' wages and pay it along with the employer’s ______.
Employers must deduct the EPF contributions from employees' wages and pay it along with the employer’s ______.
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The EPF Act 1991 requires employers to follow the rates set out in the Third ______.
The EPF Act 1991 requires employers to follow the rates set out in the Third ______.
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Under the EPF Account Restructuring, members’ accounts will be changed from two accounts to ______.
Under the EPF Account Restructuring, members’ accounts will be changed from two accounts to ______.
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SOCSO provides benefits to employees who encounter work-related accidents or contract an occupational ______.
SOCSO provides benefits to employees who encounter work-related accidents or contract an occupational ______.
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Employees earning less than RM ______ are required to contribute to SOCSO.
Employees earning less than RM ______ are required to contribute to SOCSO.
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The employee’s contribution rate to SOCSO is ______ of their monthly wages.
The employee’s contribution rate to SOCSO is ______ of their monthly wages.
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The monthly employer’s contribution to SOCSO is ______ of the employee's wages.
The monthly employer’s contribution to SOCSO is ______ of the employee's wages.
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Employees are entitled to a weekly rest day, where they are provided with ______ rest days per week.
Employees are entitled to a weekly rest day, where they are provided with ______ rest days per week.
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Public holidays include 10 days, consisting of National Day, Agong’s Birthday, State Ruler’s Birthday & Labor Day, along with ______ mutually agreed between the employer and employee.
Public holidays include 10 days, consisting of National Day, Agong’s Birthday, State Ruler’s Birthday & Labor Day, along with ______ mutually agreed between the employer and employee.
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Employees with less than 2 years of service are entitled to ______ days of annual leave.
Employees with less than 2 years of service are entitled to ______ days of annual leave.
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Sick leave without hospitalization is available for ______ days for employees with less than 2 years of service.
Sick leave without hospitalization is available for ______ days for employees with less than 2 years of service.
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Employees are entitled to sick leave for hospitalization for up to ______ days, provided they have a medical certification.
Employees are entitled to sick leave for hospitalization for up to ______ days, provided they have a medical certification.
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Pensionable employees in the public sector may receive retirement benefits, which include a monthly pension and a gratuity as well as a cash award for ______.
Pensionable employees in the public sector may receive retirement benefits, which include a monthly pension and a gratuity as well as a cash award for ______.
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Survivors' benefits under the Pension Act include derivative pension, derivative gratuity, and ______'s pension.
Survivors' benefits under the Pension Act include derivative pension, derivative gratuity, and ______'s pension.
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Pension payments commence upon reaching the compulsory retirement age of ______ or 58, depending on government regulations.
Pension payments commence upon reaching the compulsory retirement age of ______ or 58, depending on government regulations.
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Study Notes
Rewards: Compensations and Benefits Services
- Compensation is all forms of pay or rewards given to employees for their employment
- Rewards are given in return for their work/labor
- Employee rewards are important to attract qualified manpower, reduce turnover, increase loyalty, and improve employee satisfaction. They are also linked to desired behaviors and maintain competitive positioning in the labor market.
- Rewards are categorized into monetary and non-monetary rewards.
- Wage mix establishment involves several steps
Chapter Outline
- Define and explain the significance of employee rewards
- Differentiate between monetary and non-monetary rewards
- Describe the processes in establishing wage mixes
- Explain benefits and services
Importance
- Attract qualified manpower
- Reduce unnecessary turnover
- Improve current employee loyalty
- Motivate employees via systems that improve satisfaction
- Ensure compensation systems comply with legal requirements
- Reward desired behaviors towards organizational goals
- Reward employees based on past performance
- Remain competitive in the labor market
- Maintain salary equity among employees
- Ensure employees' future performance aligns with organizational goals
- Control the compensation budget
Types of Compensation
- Financial compensation refers to money-based rewards such as wages, salaries, commissions, bonuses, and other benefits.
- Non-financial compensation relates to programs that satisfy employees regarding job content and context, strengthening relationships.
- Non Financial Compensation examples include job enlargement, job enrichment, job empowerment, autonomy, recognition, advancement, awards, and job flexibility
Compensation Components
- Compensation components encompass direct rewards like wages, salaries, and incentives, as well as indirect rewards (benefits) such as recognition, rewarding work environment, organizational support, and work environment flexibility.
Compensation Alignment
- Compensation strategy involves linking compensation to objectives, focusing on performance-based compensation, and considering the basis for compensation.
- Compensation design-pay mix involves analyzing internal factors, external factors, and job evaluation systems.
- Compensation implementation-pay tools comprises elements like salary surveys, wage curves, pay grades, rate ranges, and competence-based pay.
- Compensation assessment includes elements such as compensation scorecards
Compensation Strategy
- Analyzing organizational objectives and identifying appropriate market rates to pay employees
Linking Compensation to Organizational Objectives
- Reward employees based on past performance
- Maintain a competitive position in the labor market
- Balance salary equity amongst employees
- Attract new employees
- Reduce employee turnover
- Pay strategy should be above, below, or at the prevailing market rate, ensuring employee acceptance which increases motivation
The Pay for Performance Standard
- Linking compensation to employees' relative performance
- Motivating employees through compensation
- Pay representing reward for contribution, pay equity
- Establishing distributive fairness, avoiding inequity feelings via expectancy theory.
Bases of Compensation
- Hourly work – paid based on hours worked, e.g., time sheets
- Piecework – paid based on the number of units produced, e.g., for assembly lines
- Salary work – paid based on weekly, biweekly, or monthly periods, e.g., public sector employees
Compensation Strategy-Pay Mix
- Need to attract, motivate, and retain employees, consider better approaches to attract
- One approach might be to place very sticky paper at the entrance so every one getting up will be stuck, this is a problem
Factors Affecting the Pay Mix
- Internal factors (compensation strategy, job worth, employee's relative worth, employer's ability to pay)
- External factors (labor market conditions, area pay rates, cost of living, collective bargaining, legal requirements)
Compensation Structure
- Salary structures are an integral aspect of effective compensation programs, ensuring that pay levels are competitive, equitable within the company.
Wage and Salary Survey
- Conducted to establish pay equity and distributive justice, wage surveys encompass a survey of wages paid to employees in organizations within the relevant sector, covering local, regional, and national market data.
Job Evaluation
- Formal and systematic comparison of jobs to determine their relative worth
- Compensable factors (knowledge skills, effort, responsibilities, working conditions) to establish job worth
- Job ranking method, point method, and Hay Consulting Firm approach to compare jobs in an organization
The Wage Curve
- A graph representing a relationship between the relative worth of jobs and the corresponding wage rates.
- The wage rates are paid for each job in the organization compared to other organizations.
Pay Grades
- A system for classifying jobs into different grades based on their relative worth, with a set minimum and maximum salary for each grade
Rate Ranges
- Indicates the salary range for a particular job or job title.
- The salary band and pay grades are given in relation to the job code and job title with intervals specified.
Objectives of Benefits Programs
- Improve employee work satisfaction,
- Meet employee health and security requirements
- Attract and motivate employees
- Reduce employee turnover
- Maintain competitive position,
- Retain current employees,
- Comply with legal requirements
- Improve work morale,
- Keep top performers,
- Reward employee loyalty,
- Encourage employees against unionization
Factors to be Considered in Developing Benefits and Services Plan
- Firm size (larger firms typically provide more benefits)
- Cost containment (the organization's budget constraints)
- Rising costs of benefits
- Degree of unionization
- Profitability (firms with higher profits can offer more benefits)
Requirements for a Sound Benefit Program
- Employee involvement
- Benefits for diverse workforce
- Flexibility
Providing for Flexibility
- Benefit plans allowing employees to choose benefits that suit individual needs
- Employers may contribute to the plan in addition to the employee's salary
- Include dependent care assisstance programs (day care)
- Uninsured medical expenses
- Allowable premiums
Types of Employee Benefits
- Mandatory benefits (required by law), e.g., Employment Act 1955, pension act, employees provident funds act (1991), and workers’ social security act (1969).
- Discretionary benefits (voluntary), e.g., allowances, housing loans, meals, healthcare benefits
Benefits and Services
- Improve employee work satisfaction and meet health & security requirements
- Attract/motivate, reduce turnover, maintain a competitive position
- Retain employees, comply with legal requirements
- Improve morale, retain top performers, reward loyalty, and discourage unionization
Employee Services
- Employee assistance programs (e.g. counseling, diagnosis, referrals) for various problems like alcohol/drug, marital, or family issues
- Provision of other supportive services like child/elder care, food services, transport pooling, etc
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Description
Test your knowledge on employee rewards and compensation structures in the workplace. This quiz covers the significance of monetary and non-monetary rewards, the process of establishing wage mixes, and the importance of employee benefits. Enhance your understanding of how effective rewards can attract talent and improve employee satisfaction.
