Payroll Manager Tutorial | Remuneration And Benefits
Remuneration And Benefits
Remuneration of employees has a key role in acquiring new employees and is important for employees as well as for the employers. Pay is the basic resource of living of the employees, while benefits cover better health care, the possibility of spending holidays in the company‘s holiday facilities at a favorable price and also other advantages. The decisions the employers make concerning remuneration are a factor that has an impact on the expenses of their company as well as on the ability of selling the products at a competitive price in the market (Traven, 1998). The decisions about remuneration may also enhance the ability of the employer to compete for employees on the labor market. The rewards he warrants make the standing
Personnel either want to keep their jobs or quit.
In developing an international system of compensation and benefits, an organization has two primary concerns. The first is comparability (Briscoe, 1995). A good compensation system assigns salaries to employees that are internally comparable and competitive within the marketplace. For example, the salary of a senior manager is usually higher than that of a supervisor, and each position should receive an amount within the local market range. The international organization must also consider the salaries of people who may transfer from other locations. The second major concern is cost. Organizations strive to minimize all expenses, and payroll is one of the largest.
Remuneration and benefits are closely tied to local labor market conditions, even when an organization takes an ethnocentric or geocentric approach. The availability of qualified local people to fill positions, prevailing wage rates, the use of expatriates, and local laws interact to influence the level of enumeration and benefits. For example, if there are few applicants available for positions, the remunerations for those positions generally increase. To reduce expenses, the international human resources manager might then consider bringing in an expatriate.
A company usually develops a policy, which could apply globally, to offer salaries and benefits representing a specific market level. For example, a large successful multinational company that emphasizes the quality of its products and employees could have a global policy to pay the highest wages everywhere it operates. Another company could offer top salaries in the country where it does research and development, yet pay average wages in the country where it manufactures.
