COMPENSATION AND
BENEFITS:
Salary and Wage Structures
DR. EMMANUEL DOTONG, CHIA, MBDBI, FBE
2ce Management
Functions of human resource management
As Recap last meeting
Staffing LEARNING AND DEVELOPMENT
Oversee the job and employee lifecycle function Incorporate socialization, training, performance
▪ From Job Development management, and development.
▪ To Employee Separation
COMPENSATION AND BENEFITS ADMINISTRATION
Covers employee compensation and benefits Management of regulatory compliance and
management by designing salary and wage employee relations
structure, incentives and bonus, retirement
plans, health insurance, etc.
3
01 COMPENSATION AND BENEFITS
AGENDA
As HR Function
DESIGNING COMPETITIVE
02 COMPENSATION STRUCTURES
Considerations
COMPENSATIONS AND BENEFITS
DEFINITION AND CONSIDERATIONS
Compensation and benefits 5
Refer to the strategic management of employee rewards and incentives to ensure
alignment with organizational goals, employee satisfaction, and legal compliance.
Compensation 6
AS HR FUNCTION
Salary and Wages Incentive Programs Pay Equity
▪ Establishing and managing pay ▪ Designing performance-based ▪ Ensuring fair and equitable pay
structures, including base pay and incentives such as bonuses, practices across the organization,
overtime, while ensuring commissions, and profit-sharing addressing any disparities related
compliance with the minimum plans that motivate employees to to gender, race, or other
wage standards set by the achieve organizational demographics.
Department of Labor and
objectives.
Employment (DOLE).
▪ Conducting market research and ▪ Implementing short-term and
salary benchmarking specific to long-term incentive plans to
the Philippine market to ensure reward exceptional performance
competitive pay rates that attract and encourage employee
and retain talent. retention.
Human Resource Management
Benefits 7
AS HR FUNCTION
Health and Wellness Paid Time Off and Leave
▪ Providing health insurance plans, including those ▪ Administering vacation, sick leave, and other types of
covered by the Philippine Health Insurance Corporation paid time off (PTO) policies, in line with Philippine labor
(PhilHealth), and offering wellness programs that laws.
support employee health and well-being. ▪ Ensuring compliance with legal requirements for leave,
▪ Offering mental health resources and employee such as maternity/paternity leave as mandated by the
assistance programs (EAPs). Expanded Maternity Leave Law.
RETIREMENT AND SAVINGS PLANS Additional Perks
▪ Managing retirement plans such as the Social Security ▪ Offering additional benefits such as flexible working
System (SSS) and the Pag-IBIG Fund, and providing arrangements, transportation allowances, and
guidance on financial planning and savings options. employee discounts.
▪ Educating employees on maximizing their contributions ▪ Providing non-monetary perks that enhance work-life
and understanding their retirement benefits. balance and job satisfaction, which are highly valued in
the Filipino culture.
Human Resource Management
Designing Competitive Compensation Structures 8
As hr function
Conduct market research using salary surveys specific to the Philippines to
Market Research and understand industry salary trends and benchmark against competitors.
Benchmarking Consider regional cost of living variations, especially between urban areas
like Metro Manila and other regions.
Ensure adherence to Philippine labor laws, including DOLE's minimum wage
LEGAL COMPLIANCE requirements, and regularly update compensation structures to reflect any
legislative changes.
Incorporate non-monetary benefits valued in the Filipino context, such as
CULTURAL CONSIDERATIONS family-oriented perks, healthcare, and work-life balance initiatives, to
enhance compensation packages.
Provide flexible compensation packages that cater to diverse employee
CUSTOMIZATION AND FLEXIBILITY needs, offering options like additional leave, educational assistance, and
flexible working arrangements.
Human Resource Management
Legal Framework 9
Minimum Wage Laws Labor Code Compliance Wage Orders
▪ The minimum wage in the ▪ Employers must comply with ▪ Periodically, wage orders are
Philippines is set by the the Labor Code of the issued to adjust the minimum
Regional Tripartite Wages Philippines, which outlines wage, taking into account
and Productivity Boards, standards for wages, inflation and other economic
which consider factors like overtime pay, holiday pay, indicators.
cost of living, regional and other compensation- ▪ These adjustments aim to
economic conditions, and related matters. ensure that wages remain
industry-specific needs. ▪ This includes adhering to fair and adequate for
▪ This means minimum wages provisions for night shift workers.
can vary significantly across differentials and hazard pay
different regions and sectors. where applicable.
Human Resource Management
10
Minimum Wage in
the Philippines in
2024 by Region
(UPDATED as of May 2024)
▪ Plantation workers are typically employed in
agricultural enterprises that cultivate crops on a
large scale. This includes operations like
sugarcane, banana, pineapple, and coconut
plantations.
▪ Non-plantation workers refer to those employed
in smaller-scale agricultural operations or in
industries outside of large-scale farming. This
includes workers in various sectors such as
retail, manufacturing, services, and small-scale
farming.
ECONOMIC FACTORS 11
COST OF LIVING INDUSTRY VARIABILITY INFLATION
▪ The cost of living varies ▪ Wage structures can differ ▪ Inflation impacts wage
widely across the Philippines, significantly between structures as companies need
with urban centers like Metro industries. to adjust salaries to maintain
Manila having higher living ▪ Sectors such as technology, employees’ purchasing power.
costs compared to rural finance, and business ▪ This is often addressed
areas. process outsourcing (BPO) through annual salary reviews
▪ This influences wage often offer higher wages and cost-of-living adjustments.
structures, as companies compared to agriculture or
may offer higher wages in retail due to the demand for
regions with higher living specialized skills and the
expenses to attract and nature of the work.
retain talent.
Human Resource Management
Methods for Evaluating Training Outcomes 12
Pre- and Post-Training Assessments Feedback surveys Performance Metrics and KPIs
▪ Conduct assessments before ▪ Gather participant feedback on ▪ Track key performance
and after the training to measure the training experience, including indicators (KPIs) and other
knowledge gain and skill content relevance, trainer metrics to assess the impact of
development. effectiveness, and overall training on job performance and
▪ Analyze the results to determine satisfaction. productivity.
the effectiveness of the training ▪ Use surveys to identify strengths ▪ Compare pre- and post-training
content and delivery. and areas for improvement from performance data to evaluate
the learner's perspective. behavioral changes and
improvements in work
outcomes.
Human Resource Management
QUESTIONS?
/emmanueldotong/ [email protected]
