INTRODUCTIONS

Provision of Traditional Benefits, under which a similar set of benefits are offered to allEmployees, is dominant in the competitors.

However, such a benefits design has a limitation – employers can not select thebenefits they value the most and are provided with a “ one-size-fits-all-solution.”

In view of the fact that EMPLOYERS spend a substantial amount of money on benefitsprovision, there is increasing pressure on HR Manager to deliver a more value –effective benefits design.

It provides a better over costs, improves employee perception of benefits and thuscontributes towards furthering employees, total reward satisfaction and ENGAGEMENT.

WAGE SYSTEM : OVERVIEW

WAGE SYSTEM : OVERVIEWW/P

Time

E

W/P

W*/P

b c d

N*

IU : In-voluntory Unemployment

VU : voluntory Unemployment

SN – Supply of Labor

BASIC RULE : COMPENSATION MANAGEMENT

FUNDAMENTAL : WAGE MANAGEMENT

1. Right for the CompanyA. Labor Market ( Industry, Competitors )B. PolicyC. Ability to Pay

2. Right for StaffA. Pay for what he does ( job value )B. Pay for how he does ( performance )

FUNDAMENTAL : WAGE MANAGEMENT

FUNDAMENTAL : WAGE MANAGEMENT

Salary Structure

Range

Range Spead

Overlap

MP Progression Rate

MP15,000บ.

Max 20,000บ.

Min10,000บ.

Max 28,000บ.

MP21,000บ.

Min14,000บ.

FUNDAMENTAL : WAGE MANAGEMENT

For Example :

FUNDAMENTAL : WAGE MANAGEMENT

For Example :

CONCEPTUAL : MERIT INCREASE

By Salary Structure :

- Compa – Ratio- External Compa – Ratio- Internal Compa - Ratio

ECR = Base Salary / Mid Point (MKT) ICR = Base Salary / Mid Point (Firm)

MODELPay Line : NEW

Pay Line : Old

Salary

KEY SUCCESS : MERIT INCREASE

1. Policy2. Data Management3. Communications4. Follow Up Plan

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