CHAPTER 6: WEB BASED COMPENSATION AND BENEFITS PLANNING

Thursday, 6 December 2012

Web based compensation is the topic that our group had been presented and we stress on the overview of this function, components and application, pros and cons and also major changes. After the presentation, I ask to Dr Roya about the difference between long term and short term incentives and she explained to me that long term incentives is like pay-for-performance through KPI and pay-for-knowledge likes go to the training. While, the short term incentives likes medical expenses, socso, KWSP, insurance and vice versa. Here, have some information that I can share with you little bit about this topic. 

Based on Mathus and Jackson (2012), compensation is included the pay, incentives, and benefits rewards people to motivate themselves perform in their job. Cravens et al (2011) also said that incentives likes a compensation are one of the factor to increase the sales volume and profitability because the reward as symbolize to motivate the employees. During my Human Resource Management class, my lecturer said that if the company gives you high salary, mostly the benefit will least and if the company gives the cheaper salary, mostly they will provide high benefit.

However, there have 3 components in online compensation system which is:

• Fixed compensation- Fixed compensation is the base pay that the organization pay to every employee based on their role and position

• Variable compensation- Variable compensation is the payment/salary of the employees based on their performance or we can look to their performance appraisal whether they achieved the expected performance or not. Example of this compensation is bonuses, and incentives plan (Mazure, n.d)  

• Stocks. 

From the ARLENgroup (2011), the advantage of using this online compensation and benefit system is to help the HR in terms of give feedback towards any question related to the benefit and compensation in online website. Others, it can enhance the appreciation from the employee to their employer towards the benefit providers. But, the disadvantage of this system is it will make the high cost to the employer for every solution made. 

Since, by using the online compensation and benefit planning, it will give the benefit to the company, so, I will suggest to the company that I work in the future to used this online system but before I decide to us, I will analyze first whether it suitable or not to apply at that company. (400 words)

References 


ARLENgroup (2011). Employee Benefit Compensations. A division of Alliant Insurance Services, INC.    
        http://www.arlengroup.com/facts/fact_eecomm.pdf
Retrieved from December 2, 2012



Cravens. D. W, Le Meunier-Fitzhugh. K, and Piercy. N. F (2011). The Oxford Handbook of Strategic  
        Sales and Sales Management. United States: Oxford University Press.


Mazurek.S (n.d). Employee Benefits and Compensation (Employee Pay). © Copyright Carter
        McNamara, MBA, PhD, Authenticity Consulting, LLC. Adapted from the Field Guide to Leadership
        and Supervision. Retrieved from December 2, 2012. http://www.authenticityconsulting.com/


Mathus and Jackson (2012). Human Resource Management: Essential Perspectives. United States of          
        Amerinaca: South-Western c engage Learning.


Nam. C. S and Smith-Jackson. T. L. (2007). Web-Based Learning Environment: A theory-Based Design
        Process for Development and Evaluation. Journal of Information Technology Education, Volume 6.