The document discusses new trends in compensation management, including benefits like health insurance, accommodations, loans, education assistance, work-life balance policies, and variable pay. It provides details on approaches to compensation like pay transparency, broad banding, incentive pay, employee stock ownership plans, and flexible benefits programs including modular, core-plus, and flexible spending plans. The trends are aimed at attracting and retaining employees through customized compensation packages.

1. New Trends in Compensation
Management
Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt)
Professor
Al-Qurmoshi Institute of Business Management
Hyderabad

2. New Trends in Compensation
Management
The following are the new trends in compensation
management
Group Mediclaim/Insurance Scheme
Personal Accident Insurance Scheme
Company Leased Accommodation
Recreation/ATM facilities
Corporate Credit Card
Club memberships

3. New Trends in Compensation
Management (Contd.)
Cellular Phone/Laptop
Personal Health Care (Regular medical check-ups)
Loans
Educational Benefits (For Higher studies)
Regular Get together and other cultural programs
Wedding Day/Birthday Gift
Employee Referral Scheme
Maternity Leave
Paternity Leave

4. New Trends in Compensation
Management (Contd.)
Work-life Balance
Pay Transperancy
Broad banding
Variable Pay (Incentive Pay)
Flexible Benefits

5. Work-life Balance
Flexi-time
Compressed workweek
Job sharing
Telecommuting
Part-time work
Modified retirement
Employee Assistance Programme
Child Care Assistance
Elder Care Assistance
5

6. Pay Transperancy
Employees want transparency in pay system.
Now a days some organisations are using
transparent pay system.
Pay transparency influences employees in
• Fostering trust in management
• Increasing employee engagement
• Encouraging discretionary efforts
• Reducing turnover
• Creating competitive advantage

7. Broad banding
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.

8. Variable Pay (Incentive Pay)
Tying pay to some measure of
individual, group, or
organizational performance.
Piecework incentive
Pay-for-performance
Pay-for –person
Merit pay
Bonuses
Sales incentives
Profit sharing
Gain sharing
Employee Stock Ownership
Plan

9. Employee Stock Ownership Plan
Employee Stock Ownership Plan (ESOP) is an employee
benefit plan.
The scheme provides employees the ownership of stocks in
the company.
Employers have the benefit to use the ESOPs as a tool to
fetch loans from a financial institute.
It also provides for tax benefits to the employers.
Company makes annual contributions in a special trust set
up for ESOPs.

10. Flexible Benefits
Flexible benefits allow employees to pick benefits
that meet their needs. The idea is to allow each
employee to choose a benefit package that is
individually tailored to his or her own needs and
situation.

11. Flexible Benefits
The three most popular type of benefit
plans are:
- modular plans,
- core-plus options and
- flexible spending accounts.

12. Modular Plans
Modular plans are pre-designed packages of benefits,
with each module put together to meet the needs of a
specific group of employees.
So a module designed for single employees with no
dependents might include only essential benefits.
Another, designed for single parents, might have
additional life insurance, disability insurance, and
expanded health coverage.

13. Core-plus Plans
Core-plus plans consist of a core of essential benefits
and a menu-like selection of other benefits options
from which employees can select and add to the core.
Typically, each employee is given “benefit credits,”
which allow the “purchase” of additional benefits that
uniquely meet his or her needs.

14. Flexible Spending Plans
Flexible spending plans allow employees to set aside
up to the amount offered in the plan to pay for
particular services.
It’s a convenient way, for example, for employees to
pay for health-care and dental premiums.
Flexible spending accounts can increase employee
take-home pay because employees don’t have to pay
taxes on the amount they spend out of these
accounts.

15. Benefits and Perks at Google
Physical Fitness
Healthy Eats - a chef makes custom cook every single day
Rejuvenating
Dry-cleaning and alterations
Car wash
Unrestricted dress code
DVD rental
Bike repairs
Haircuts
Theatres
House Rent allowance
Transport and fuel for a specific project, amount returned
after service