HRM 2
HRM 2
HRM 2
Brief Discussion:
One of the most difficult functions of personnel or human resource management is that which
concerns compensating the employees fairly and equitably. There are four kinds of employee
compensation: salary or wage, incentive pay, allowances, and benefits. Salary or wage is the basic
compensation while incentive pay is designed to encourage the employee to render extra effort over
normal production. Allowances are given to meet employee needs during temporary situations. Benefits
are rewards for belonging to an organization. In a period of inflationary pressures and economic
uncertainties, compensation assumes an overriding importance not only to management but also
salaries and wages arise because several groups have interests in employee compensation, such as the
following:
1. The employees who work primarily to earn a living for themselves and their families.
2. The company that pays its employees attractive salaries and wages in order to refrain them but
is at the same time concerned with the cost of production and its competitive position in
marketing its products in order to make profits for its investors.
3. The community that is concerned with the cost of commodities and services in relation to
income level of the people in the community.
4. The state whose economy will be adversely affected by inflationary wage levels.
Learning Outcomes:
Compensation and benefits refer to the benefits a firm provides to its employees are thus a key part
of Human Resource Management.
This same research found that a company rating on glassdoor resulted in a four percent increase in
the chance that someone would stay at the compnay. Salary is clearly important, but there is something
either than, money going on.
A pay scale study gives some insight into the influence of salary, they found a strong correlation
between pay and engagement (and engagement profoundly influences retention), but what was stronger
is pay clarity. When employees understand hat their compensation was fair, it increased their
engagement.
A market rate can also eb defined as a “going rate” and is the amount people are willing to pay for a
particular good or service. Employees are offering their services and fall under this definition. There
are market rates for such position, but because people are rarely transparent about salaries, this can be
difficult to ascertain.
Determining where someone fits within that salary range can also be compicated. Compensation
managers often use statistical tools, such as regression analysis. To establish a proper salary position.
The variables that the regression use can include:
-Highest degree earned (and type and degree area)
-Years of experience
-Tenure with the company
-Position tenure
-Current salary
-Full-time equivalent status
-Grade Level
-Job performance ratings
Compensation and benefits are key components for company success, employee engagement, and
turnover. You should evaluate your plans and programs regularly (at least yearly) to ensure that you
meet both employee expectations and remain competitive in the market.
An incentive is an object, item of value, or desired action or event that spurs employee to do more of
whatever was encouraged by the employer through the chosen incentives.
Employee incentive programs like rewards or discounts may sound good in theory, but they're not
always as beneficial as they seem. They could be useless and unappealing even if you've put a lot of
effort into putting them together. While workplace incentives are positive ways to show appreciation
for exceptional employees, some programs are difficult to use or simply don't matter to workers.
If you want your staff to use your incentive programs, it's crucial to make sure your employee care
about the rewards you're offering. The occasional pizza party might be appreciated, but it doesn't have a
lasting effect. You need to be strategic. If you succeed, the payoff will be worthwhile. Not only will
it be motivating for employee productivity and overall wellness, but it could make your workplace a
significantly more desirable (and profitable) place to work.
Based on recent research, it's critical-now more-than ever-to keep employees motivated. After all,
the job market is competitive, and you have goals to achieve; your workplace has to make a lasting,
positive impression.
Your rewards must excite employee. Additionally, for the system to truly work, these rewards must
only be given in exchange for meeting certain goals and never for any other reason, not even birthdays
or other non-performance occassions.
Top HR leaders know that it's the people who drive business results. Yet, in today's hot job market,
employees and candidates have more choices than ever before in terms of where they take their talents.
That's why having a strong, differentiated total rewards package can have powerful benefits including
increasing the quality of your candidate pool, improving retention, creating organizational alignment,
boosting your reputation and your bottom line.
Compensation is one of the most complex disciplines in the field of talent management, or human
resources. Handling employee compensation issues properly requires knowledge of:
1.Employments trends;
2.How to value jobs both internally and externally;
3.How to adapt to varying financial conditions.
Most companies use compensation to help build, motivate and retain a strong, innovative and
productive workforce. The ongoing challenge is to balance employee perception while allowing for
differentiation of pay across the workforce.
Employees have their own perception of internal equity as it affects them among their peers,
managers and subordinates. If an employee believes they are underpaid, they will typically react by
reducing their effort or performance. This may result in, for example, increased absenteeism and sick
leave, tardiness, unmet deadlines, excessive work breaks, lack of focus or even a resignation.
Compensation is money received in performance of work and many kinds of benefits that an
organization provides to their employees.
COMPENSATION COMPONENT
A.MONETARY B.NON-MONETARY
4.What are the kinds of employee inentives and how do employers use it?
MODULE 5
BRIEF INTRODUCTION:
Recruitment is the process of locating potential indoviduals who might join an organization and
encouraging them to apply for existing or anticipated job openings. During this process, efforts are
made to inform the applicants fully about the qualifications required to perform the job and the career
opportunities the organization can offer its employees. Whether a particular job vacancy will be filled
by someone from within the organization or from outside will, of course, depend on the availability of
personnel, the organization's HR policies, and the requirements of the job to be satisfied.
Learning Outcomes:
Also referred to as a hiring strategy, it is not just a static one-time plan for a specific process or
instance. It is a dynamic, fluid blueprint for every stage and phase of the full recruitment cycle an
innovative framework that involves understanding the deficits in present talent as well as the growth
plans for the future. Recruitment is essentially a sales-driven job and similar to the need for a sales
strategy to attract the target audience, reccruitment also needs to strategize a plan of action to attract the
right talent. Instead of selling process and services, as is the case with a sales strategy, the recruitment
strategy needs to be able to sell the employer brand.
Finding the interested candidates who have submitted their profiles for a particular job is the process
of recruitment, and choosing the best and most suitable candidates among them is the process of
selection. It results in elimination of unsuitable candidates. It follows scientific techniques for the
appropriate choice of a person for the job.
The recruitment process has a wide coverage as it collects the applications of interested candidates,
whereas the selection process narrows down the scope and becomes specific when it selects the suitable
candiates.
*TYPES OF DISCRIMINATION
– Direct discrimination
.Direct discrimination occurs when someone is treated less favorably than another person
because of a protected characteristic they have or are thought to have or because they
associate with someone who has a protected characteristic.
– Indirect discrimination
.Indirect discrimination can occur when you have a condition, rule, policy, or even a
practice that applies to everyone but particularly disadvantages people who share a
protected characteristic. Indirect discrimination can be justified if you can show that you
acted reasonably in managing your business, i.e., that is a proportionate means of achieving
a legitimate aim. A legitimate aim might be any lawful decision you make in running your
business or organization, but there is a discriminatory effect, the sole aim of reducing costs
is likely to be unlawful. Being proportionate really means being fair and reasonable,
including showing that you've looked at less discrimanatory alternatives to any decision you
make.
– Victimization
.Victimization occurs when an employee is treated badly because they have made or
supported a complaint or raised a grievance under the Equality Act; or because they are
suspected of doing so. An employee is not protected from victimization if they have
supported an untrue complaint. There is no longer a need to compare treatment of a
complainant with that of a person who has not made or supported a complaint under the Act.
– Harassment
.Harassment is “unwanted conduct related to a relevant protected characteristics, which has
the purpose or effect of violating an individual's dignity or creating an intimidating, hostile,
degrading, humiliating or offensive evironment for that individual's dignity or creating an
intimidating, hostile, degrading, humiliating or offensive environment for that individual.
Employees will now be able to complain of behavior that they find offensive even if it is ot
directed at them, and the complainant need not possess the relevant
characteristicthemselves. Employees are also protected from harassment because of
perception and association.
– Further information about the protected characteristics: Key points under the Equality Act
2010.
– Age
.The Act protects people of all ages. However, there may be grounds to justify that different
treatment because of age was not unlawful direct or indirect discrimation if youy can
demonstrate that it was a proportionate means of meeting a legitimate aim.
– Disability
.The Act has made it easier for a person to show that they are disabled and protected from
disability discrimination. Under the Act, a person is disabled if they have a physical or
mental impairment which has a substantial and long term adverse effect on their ability to
carry out normal day-to-day activities which would include things like using a telephone,
reading a book or using public transport.
– Gender reassignment
.The Act provies protection for transexual people. A transexual person is someone who
proposes to starts or has completed a process to change his or her gender. The Act no longer
requires a person to be under medical supervision to be protected -e.g., a woman who
decides to live as a man, but does not undergo any medical procedures, would be covered.
– Marriage and civic partbership
.The Act protects employees who are marrie or in a civic partnership against disc -
rimination. Single people are not protected
– The Pregnancy Discrimination Act of 1975
.Makes it illegal to refuse to employ a woman because of pregnancy, childbirth or a related
medical condition. The basic principle of the Act is that a woman affected by pregnancy or
other related medical condition must be treated
the same as any other applicant in the recruitment and selection process.
– Race
.For the purpose of the Act “race” includes color, nationality and ethnic or national origins
will be protected.
– Religion or Belief
.In the Equality Act, religion includes any religion. It also includes no religion, in other
words employees or jobseekers are protected if they do not follow a certain religion or have
no religion at all. Additionally, a religion must have a clear structure and belief system.
Belief means any religious or philosophical belief, including no belief, to be protected, a
belief must satisfy various criteria, including that is a weighty and substantial aspect of
huamn life and behavior. Denominations or sects within a religion can be considered a
protected religion or religious belief. Discrimination because of religion or belief can occur
even where both the discriminator and reciient are of the same religion or belief.
Social media recruiting is a recruitment strategy that combines elements of employer branding and
recruitment marketing to connect with and attract active and passive candidates on the digital platforms
they frequent.
Recuriting the best talent takes much more than posting a job to your careers pages and waiting for
the candidates to roll in, to connect with the best people you have to go where they go, and these days
that means social media. Instead of taking our word for it, here are a few social media and recruitment
statistics you should consider.
7 (more) REASONS YOU SHOULD BE USING SOCIAL MEDIA FOR RECRUITMENT:
1. Boost Recruitment Marketing Efforts
There are a variety of mediums and sources you can utilize your recruitment marketing efforts,
but social media can take your efforts to the next level, reaching millions of skilled candidates
across globe in secnds.
2. Tailor Your Recruiting Efforts
Social media platforms provide myriad options for teaching specific groups of people, allowing
you to target the candidates most suited for your roles. Narrowing the applicant poor early in
the recruiting process will let you spend more time focusing on the best applicants.
3. Create and Repurpose A Variety of Content
There is no limit to the content you can create in your social media recruiting efforts from the
written word and compelling imagery to video and interactive content, the sky is the limit,
while video content has become the newest trend, with 76% of companies using video reporting
an increase in traffic, it's important to keep in mind that different content will perform better on
certain platforms so you'll want to do some research to figure out what resonate best with your
target candidates.
4. Promote Your Employer Brand
69% of job seekers say that a company's reputation is a critical factor when considering a new
job. So critical, in fact, that 84% of people who are currently employed say that they would
consider leaving their job if another comoany with a better reputation name calling. Social
media is an excellent resource to promote your employer brand to potential employees that may
not be looking at your job descriptions.
5. Increase Your Reach
Unless you're one of the few companies lucky enough to have candidates lining up for your
jobs, it's imperative that you reach as many potential candidates as possible.Simply put, the
more qualified candidates you reach, the greater you odds of making a great hire.
6. Connect with Passive Candidates
Today, 70% of the workforce are passive candidates though they may be open to new
opportunities, they aren't actively looking which means traditional recruiting methods will be
virtually useless. Social media recruiting allows you to get roles in front of millions of
candidates that you would never reach otherwise.
Even better, because social media is both so broad and direct in the audiences it allows you to
reach, you can connect with specific audiences on an individual level,leading to a more
personalized experience for candidates.
7. Get to Know Candidates Beyond Their Resumes
The traditional resume may be great at summarizing a candidate's professional background, but
it offers little insight into who they actually are as a person. Social media recruiting allows you
to develop a more comprehensive understanding of candidates, inclduing their personality,
interests and mutual coooperation
ASSESSMENT GUIDE: