Competitiveness Of Compensation Strategy Essay

QUESTION 1

1) Competitiveness

The competitiveness of the compensation is another important compensation decision that also work in attracting or retaining employees. The organization can decide to be aggressive with the compensation strategy and it can set the aggressive position on the pay market, but this strategy is extremely expensive for the organization and it has to balance it with high margin on the products and services.

On the other hand the organization can choose to offer the career and development opportunities, which can increase the responsibilities of the individual employees and it can balance aim to the lower level of the compensation on the pay market. The decision about the competitiveness of the compensation strategy

closed pension funds

Open pension funds support at least one pension plan with no restriction on membership while closed pension funds support only pension plans that are limited to certain employees.

Public vs. private pension funds

A public pension fund regards as one that is regulated under public sector law while a private pension fund is regulated under private sector law.

b) Provident funds- The total retirement benefit which is payable as a cash lump sum. It should be noted that the fund rules do however allow the retiring member the option to purchase a compulsory annuity instead of receiving the full retirement benefit in cash.

The objective of a provident fund is to provide employees with a lump sum benefit at retirement. A provident fund is thus more flexible, as employees can still purchase an annuity with their fund. Only the employer can claim a tax deduction for provident fund contributions. Therefore, if the employment contract provides that the employee pays a part of the contribution, a pension fund is more tax-efficient for the employee

c) Retirement Annuity- is a tax effective retirement investment vehicle for individuals. The primary target market is individuals who do not participate in a pension or provident

EAPs are intended to help employees deal with personal problems that might adversely impact their job performance, health, and well-being. EAPs generally include short-term counselling and referral services for employees and their household members, and the well-being of the employees as large it could be health wise. Supervisors or managers might also refer employees (manager’s referral) based upon unacceptable performance or conduct issues.

Purpose of the programmes

The purpose of an Employee Assistance Program (EAP) is to improve the psychological health of employees. The programme helps the staff members to develop coping skills and accept a greater degree of personal responsibility. It also helps them resolve their individual, marital, family and job performance problems. As a result, their productivity and attendance of individual members within the organisation improve. Employees and their dependents usually have immediate access to confidential professional counselling, free of charge as long as they stay within the organisation.

Various issues that can be addressed by EAP

The EAP exists to help with any personal or work-related issues