IN THE NAME OF ALLAH

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IN THE NAME OF ALLAH THE MOST BENEFICIENT
THE MOST MERCIFUL
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COMPENSATION NEEDs ASSESSMENT
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What is Career?

• Get reality in touch
• US, EUROPE, AUSTRALIA AND CANADA
• Why are they 1
• Infrastructure
• Constitution
• Development
• In today's world the term career is seen as a
  continuous process of learning and development. A
  career is an evolving order or sequence of work
  activities and positions that one experiences
  over time as well as associated attitudes,
  knowledge , and competencies that develop
  throughout ones life

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SEGMENT PERSONAL PROFESSIONAL
FAMILY OFFICE / WORK Compensation Need
Assessment Those employees left the organization
will join another Organization. In this scenario
current observation concerning incumbent with HR
consulting firm to reevaluate the structure of
Compensation and Benefits plan with respect to
multiple organizations data. HR consulting firm
seeks for bench mark in the market share and
describe the best after controversy. Consulting
Firms Monster, HRSGlobal, Comsys, Clarendon
Parker, Etc. Performance Appraisal Evaluation.

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Compensation Needs Assessment
1. Analysis of career opportunities both
within and outside the organization. 2.
Analysis of career opportunities both within and
outside the organization. 3. Relating specific
jobs to different career opportunities. Work
Ethics be honest to yourself Successful at
work Work Make people successful Profession
given to earning for lively hood. Career is
directly proportional to commitment for the
excellence irrespectively of what job you choose
to do or get. Key parameters in a successful
person. Assuming ownership not available, Avoid
Gossiping, Be proactive work for company to grow,
Do not take thing personally take it
professionally. 4. Establishing realistic goals
both short-term and long-term. 5. Formulating
career strategy covering areas of change and
adjustment, Preparing and implementing action
plan.
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Compensation Needs Assessment
Bring out Gold from the Work. Have win -----
Win ----- Situation. Accept your mistakes /
mistakes learn from your mistake. Do not
repeat errors. An organization can make the
reason for not doing the task. Successful
Organization find alternatives to complete the
task. Find N alternatives to complete the task.
Create a long-term Strategy.
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Compensation Needs Assessment
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Compensation Needs Assessment
Those employees left the organization will join
another Organization. In this scenario current
Observation concerning incumbent with HR
consulting firm to reevaluate the structure of
Compensation and Benefits plan with respect to
multiple organizations data. HR consulting firm
seeks for bench mark in the market share and
describe the best after controversy.
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Compensation Needs Assessment
Budget Allot Institute declares Budget for their
remuneration packages. According to Job Profile
Resources.
Indirect Financial Payments Pay in the form of
Financial Benefits such as insurance,
etc. Direct Financial Payments Cash, Current
Assets, Etc. Ranking Method The simplest
method of job evaluation that involves
ranking each job relative to all other
jobs, usually based on overall
difficulty. Grade Definition Written
descriptions of the level of, say,
responsibility and knowledge required by
jobs in each grade. Similar jobs can then
combine into grades or classes. Pay Grade
A pay grade is comprised of jobs of
approximately equal difficulty. Pay Ranges
A series of steps or levels within a pay
grade, usually based upon years of
service. Globalization and Diversity Compensating
Expatriate Employees
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Compensation Needs Assessment
Pay Scale Variable Pay Scale Different Jobs
have Different Salary Structure According to
Skills, Knowledge, Experience and
Behavior. Fix Pay Scale Specific Scale for
relevant job. Over Time 1.5 or Twice to
Basic salary / Gross wages. D.O.
Organization Policy.
Basic Salary 60, 65 () or D.O. Organization
Policy. Provident Funds 11 Employee 11
Organization D.O. Organization Policy.
Fringe Benefits Luxury Transportation,
House Allowance, Family Medical, Food,
Worldwide Air Tickets, Membership,
Children Tuition Fees, Etc Benefits Return
Air Tickets, Transportation Bonus
Increments(Conditions) Entire or Individual
Department.
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Compensation Needs Assessment
Recreation Activity Sports, Service Excellence
Day, Parties, Etc Annual Leave Casual Leave
Policy Maternity Leave, Absenteeism, Extra
Leaves, Emergency Leaves. Motivation
Level Reward, Promotions. Timing for prayers /
Canteen to Serve. Compensable Factor A
fundamental, compensable element of job, such
as skills, effort, responsibility, and working
conditions. Salary Compression Salary inequity
problem, generally caused by inflation ,
resulting in longer term employees in a position
earning less than workers entering the firms
.
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Compensation Needs Assessment
Government Law. The limit not chargeable to tax
for Tax Year 2010 is Rs. 200,000. The limit
not chargeable to tax for salaried women is Rs.
260,000.
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Pakistan Income Tax Slabs / Personal Income Tax
Rates for 2010
Slab No. Taxable income Tax Rate
1. Where taxable income is below Rs. 200,000 0
2. Where the taxable income is between Rs. 200,000 - Rs. 250,000 0.50
3. Where the taxable income is between Rs. 250,000 - Rs. 350,000 0.75
4. Where the taxable income is between Rs. 350,000 - Rs. 400,000 1.50
5. Where the taxable income is between Rs. 400,000 - Rs. 450,000 2.50
6. Where the taxable income is between Rs. 450,000 - Rs. 550,000 3.50
7. Where the taxable income is between Rs. 550,000 - Rs. 650,000 4.50
8. Where the taxable income is between Rs. 650,000 - Rs. 750,000 6.00
9. Where the taxable income is between Rs. 750,000 - Rs. 900,000 7.50
10. Where the taxable income is between Rs. 900,000 - Rs. 1,050,000 9.00
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11. Where the taxable income is between Rs. 1,050,000 - Rs. 1,200,000 10.00
12. Where the taxable income is between Rs. 1,200,000 - Rs. 1,450,000 11.00
13. Where the taxable income is between Rs. 1,450,000 - Rs. 1,700,000 12.50
14. Where the taxable income is between Rs. 1,700,000 - Rs. 1,950,000 14.00
15. Where the taxable income is between Rs. 1,950,000 - Rs. 2,250,000 15.00
16. Where the taxable income is between Rs. 2,250,000 - Rs. 2,850,000 16.00
17. Where the taxable income is between Rs. 2,850,000 - Rs. 3,550,000 17.50
18. Where the taxable income is between Rs. 3,550,000 - Rs. 4,550,000 18.50
19. Where the taxable income is between Rs. 4,550,000 - Rs. 4,950,000 19.00
20 Where the taxable income is more than Rs. 5,000,000 above 20.00
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Compensation Needs Assessment
What Is Competency-based Pay?
Competency-based pay Where the company pays
for the employees range, depth, and types of
skills and knowledge, rather than for the job
title he or she holds. Competencies
Demonstrable characteristics of a person,
including knowledge, skills, and behaviors, that
enable performance.
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Why Use Competency-Based Pay?

• Pay plans that aim for high-performance work
  system.
• Paying for skills, knowledge, and competencies
  is more strategic.
• Measurable skills, knowledge, and competencies
  are the heart of any
• companys performance management process.

Competency-Based Pay Pros and Cons
Pros Higher quality Lower absenteeism and
fewer accidents Cons implementation
problems Cost implications of paying for unused
knowledge, skills and behaviors Complexity of
program Uncertainty that the program improves
productivity
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Compensation Needs Assessment
BROADBANDING
Consolidating salary grades and ranges into just
a few wide levels or bands, each of which
contains a relatively wide range of jobs and
salary levels. Wide bands provide for more
flexibility in assigning workers to different job
grades. Lack of permanence in job
responsibilities can be unsettling to new
employees.
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Compensation Needs Assessment
Vroom suggests that an employee's beliefs about
Expectancy, Instrumentality, and Valence interact
psychologically. In this way they create a
motivational force, such that the employee will
act in a way that brings pleasure and avoids
pain.
Effort
Expectancy? Leads to
Performance
Instrumentality? Leads to
Outcome(Reward)
Valence?
Personal Goals
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Compensation Needs Assessment
Herzberg Two Factor Theory
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Compensation Needs Assessment
The sum total of all forms of payments or rewards
provided to employees for performing tasks to
achieve organizational objectives If you
pay peanuts, you get monkeys. James Goldsmith