Non-financial Compensation System

Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt)

Professor Al-Qurmoshi Institute of Business

Management Hyderabad

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Non-financial Compensation System

Job & Job characteristicsJob EnvironmentWorkplace Flexibility

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Non-financial Compensation SystemJob

Interesting, challenging & responsibleOpportunity for recognition & advancementFeeling of achievement

Job CharacteristicsSkill VarietyTask IdentityTask SignificanceAutonomyFeedback

Job Environment

Policies, Supervision, Co-workers, Status Symbols, Working Conditions

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Workplace FlexibilityFlextimeCompressed workweekJob sharingFlexible compensation (cafeteria

compensation)TelecommutingPart-time workModified retirement

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FlextimeFlextime- allows employees to have the benefits

of adjusting the time as they come to work. Businesses can offer flexible services to

customers, supervisors are forced to communicate more effectively.

Practice of permitting employees to choose, with certain limitations, their own working hours

Work the same number of hours per day as they would on a standard schedule

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Flexible Time Core TimeFlexible

Time (Lunch)

Core Time Flexible Time

6 a.m. 9 a.m. 6 p.m.3 p.m.Noon

Bandwidth

Compressed Work WeekEmployees have the opportunity to work 4

days a week with longer work hours, usually 10 hours per day.

In return they are able to take one day off a week with out using vacation.

Arrangement of work hours that permits employees to fulfill their work obligation in fewer days than the typical five-day workweek

Provide greater job satisfaction8

Job SharingTwo part-time people split the work

schedule of 40 hours a week. They split the duties of one job in some

agreed-on manner and are paid according to their contributions

Partners must be compatible, have good communication skills and trust must exist between the job sharers and their manager

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Flexible Compensation PlansPermit employees to choose from among

many alternatives in deciding how their financial compensation will be allocated

Determine the compensation package that best satisfies his or her particular needs

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TelecommutingWork arrangement whereby employees,

called teleworkers or telecommuters, are able to remain at home, or otherwise away from the office, and perform their work using computers and other electronic devices that connect them with their offices

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Part-time WorkSome people do not either want or need

full-time employmentAdds many highly qualified individuals to

the labor market by permitting both employment and personal needs to be addressed

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Modified RetirementPermits older employees to work fewer

than regular hours for a certain period of time preceding retirement

Allows an employee to avoid an abrupt change in lifestyle and move gracefully into retirement

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