FINANCIAL

COMPENSATION
 thread of subtopics

1 2 3
GOVERNMENT JOB
STATUTES EFFECTS
COLLECTIVE
EVALUATION
ON FINANCIAL BARGAINING
COMPENSATION

 FINANCIAL
COMPENSATION
Presented by : Roshelle Anne A. Palalay
 FINANCIAL
COMPENSATION
The act of compensating
someone with money or other
valuables in return for work.
 FINANCIAL
COMPENSATION
Wages
Salaries
Tips
Commissions
 FINANCIAL
COMPENSATION
Wages Salaries
 GOVERNMENT STATUTES EFFECTS
ON FINANCIAL COMPENSATION
Government regulation can affect the financial
compensation industry in positive and negative ways.

Increased regulation Some goverment regulations

means higher workload are expensive to follow that
causes tumult in stock
for people in the industry
market.
who ensure regulations
The Environmental
are adhered to. Protection Agency (EPA)
NEGATIVE EFFECT
 GOVERNMENT STATUTES EFFECTS
ON FINANCIAL COMPENSATION
Government regulation can affect the financial
compensation industry in positive and negative ways.
Some regulations help Implementing these
hold companies regulations was expensive, but
accountable and the act gave more protection to
increase internal people investing in financial
controls services
POSITIVE EFFECT
GOVERNMENT STATUTES EFFECTS
ON FINANCIAL COMPENSATION

The government plays the role

of moderator between brokerage
firms and consumers.
COLLECTIVE

BARGAINING
Presented by :
Arjanet R. Bonggo
 COLLECTIVE
BARGAINING
is a negotia
tion process
which a gro i n
up of worke
rs,
often repres
ented by a
labor union,
chooses a
representat
ive to
advocate fo
r better term
s
of employme
nt.
 types of
union in the
philippines
 PUBLIC SECTOR UNION/
PRIVATE SECTOR UNION/
PUBLIC EMPLOYEES
LABOR ORGANIZATION
ORGANIZATION

Refers to any organization, Refers to any union or

union or association of association of employees in the
employees in the agencies of private sector which exist in
government which exist in whole or in part for the
whole or in part for the purpose of collective
purpose of collective bargaining or mutual aid,
negotiations or mutual aid, interest, cooperation,
interest, cooperation and protection or other lawful
protection. purposes.
 Workers' and
Employers'
Organizations in
the Philippines
 EMPLOYERS'
EMPLOYERS' ORGANIZATIONS
ORGANIZATIONS
EMPLOYERS'
INTERNATIONAL LABOUR
CONFEDERATION OF THE
ORGANIZATION (ILO)
PHILIPPINES (ECOP)
Established in September 1975,
unites employers and their It is the United Nations
organizations, safeguards and agency where
enhances employers’ interest in governments, employers
labour-management relations, and workers have, through
including social and economic a tripartite structure, an
policy issues, and promotes equal voice in improving
industrial harmony, social justice conditions and life at
and national economic growth. work.
EMPLOYEES'
EMPLOYEES' ORGANIZATIONS
ORGANIZATIONS

FEDERATION OF FREE KILUSANG MAYO

WORKERS (FFW) UNO (KMU)

A national trade An independent labour center

union center in the promoting genuine, militant
Philippines. It was and patriotic trade unionism.
KMU was established on May
founded June 1950,
1, 1980 during the last years of
and has a dues- the dark days of Martial Law
paying membership. under the Marcos
dictatorship.
 EMPLOYEES'
EMPLOYEES' ORGANIZATIONS
ORGANIZATIONS
SENTRO NG MGA
NAGKAKAISA AT TRADE UNION CONGRESS
PROGRESIBONG OF THE PHILIPPINES
MANGGAGAWA (SENTRO) (TUCP)
The biggest confederation of
Represents at least 80,000 labor federations in the
members in the public and Philippines both in membership
private sector. They organize and in number of Collective
industry and sectoral unions Bargaining Agreements. TUCP is
in the country by utilizing one of lead-convenors of the
social movement unionism. Nagkaisa Labor Coalition, the
largest labor coalition in the
country today
Why is collective bargaining
important?

What is the outcome of

collective bargaining?
 GA IN ING
IV E BA R
COLLEC T )
N T (C BA
E E M E
AGR
o n t r a c t
y m e n t c
m p l o ,
an e o u t w a g e s
t s p e l l s
th a p l o y e e
u l e s , e m
k s c h e d m s
w o r h e r t e r
a n d o t
n e f i t s , s o f
b e n d i t i o n
a n d c o
y m e n t .
em p l o
 how the
collective
bargaining
process works
1 THERE IS A NEED FOR NEGOTIATION

This might be a labor dispute or a need to draft or

renew a collective employment contract. Labor and
management may also agree to regular meetings to

review issues as they arise.

2

BOTH SIDES PREPARE

Management and labor choose representatives to

negotiate for their interests. Both sides will review

the existing employment contract to identify areas
for improvement.
 3 THE PARTIES AGREE TO GROUND RULES

Proposal
bargaining Early in the process, management and labor agree to

a se d
e st -b ground rules e.g., when and where bargaining
Inter g
a inin sessions will take place and when all initial proposals

barg
should be “on the table.”

NEGOTIATIONS BEGIN IN EARNEST

The NLRA stipulates which bargaining subjects are
4

mandatory, permissive, or illegal. On the other

hand, they may or may not choose to bargain on

subjects like company marketing strategies. Finally,

both parties are forbidden from including certain
issues.
 5 MANAGEMENT AND LABOR REACH A
TENTATIVE AGREEMENT
After several rounds of give and take, both sides reach a
tentative agreement. The union then brings the
agreement back to their members. If management and

labor cannot come to terms, the employer may declare an

impasse and implement the last proposal.

THE UNION MEMBERS VOTE TO RATIFY

THE AGREEMENT

In some unions, the agreement is tentative until the

members ratify it. Members often vote by secret
ballot, which may be required by the union’s rules.

legal bases of
collective
bargaining
 Article III - 1987 Article IX-B - 1987
Constitution , Section 8 Constitution, Section
2, par. 5
"The right of the people,
including those employed in
The right to self-
the public and private sectors, organization shall
to form unions, associations, not be denied to
or societies for purposes not
government
contrary to law shall not be
employees.
abridged."
 Article III - 1987 Constitution , Section 8

"It shall guarantee the rights of all workers to self-

organization, collective bargaining and negotiations,

and peaceful concerted activities, including the right to

strike in accordance with law. They shall be entitled to
security of tenure, humane conditions of work, and a
living wage. They shall also participate in policy and
decision-making processes affecting their rights and
benefits as may be provided by law."
4 PICS 1 WORD
 4 PICS 1 WORD

O B J
E V A L U A T I O N
 WHAT IS
JOB EVALUATION?
AIMS TO PROVIDE THIS EQUITY AND CONSISTENCY BY

DEFINING THE RELATIVE WORTH OF DIFFERENT JOBS

IN AN ORGANIZATION

IT IS THE SYSTEMATIC SCORING AND COMPARISON OF

JOBS ALONG ORGANIZATIONALLY DETERMINED

DIMENSIONS OF JOB WORTH, SUCH AS, THE EFFORT,

RESPONSIBILITY, COMPLEXITY, IMPORTANCE, SKILLS,

AND THE WORKING CONDITIONS OF A JOB.

 OBJECTIVES OF
JOB EVALUATION?

TO SECURE AND MAINTAIN COMPLETE, ACCURATE,

AND IMPERSONAL DESCRIPTIONS OF EACH PARTICULAR

JOB OR OCCUPATION.

TO PROVIDE A STANDARD PROCEDURE FOR

DETERMINING EACH JOB'S RELATIVE WORTH OR VALUE

TO DETERMINE A PAY RATE FOR EACH JOB THAT IS FAIR

AND EQUITABLE IN RELATION TO OTHER JOBS

 OBJECTIVES OF
JOB EVALUATION?
TO ENSURE THAT LIKE WAGES ARE PAID TO ALL
QUALIFIED
EMPLOYEES ON LIKE WORK.

TO PROMOTE FAIR AND ACCURATE CONSIDERATION OF

ALL EMPLOYEES FOR ADVANCEMENT AND TRANSFER.

TO PROVIDE A FACTUAL BASIS FOR THE CONSIDERATION

OF WAGE RATES FOR SIMILAR JOBS BOTH WITHIN THE
COMMUNITY AND WITHIN THE INDUSTRY.

TO PROVIDE INFORMATION FOR THE WORK

ORGANISATION, EMPLOYEE’S SELECTION AND TRAINING
AND NUMEROUS OTHER IMPORTANT PURPOSES.
 Job evaluation typically,
involves four steps:

1. Job analysis;
2. Job documentation;
3. Job rating using the organization’s job

evaluation plan; and

4. Creating the job hierarchy.

STEP 1
Job AnaLYSIS
process of collecting and evaluating relevant information about
jobs.

The information gathered should reveal the nature of the task at

hand (key tasks, responsibilities, and responsibilities), as well as the
level of the job being done.
STEP 2
JOB DOCUMENTATION:

Job documentation is the process of recording job content

information, usually in the form of a written job description,
one of the most important products of job analysis.
 STEP 3
Rating the job:
a job’s assigned duties are assessed using the job evaluation
plan, or instrument selected by the organisation

DISCUSSIONS ABOUT JOB EVALUATION

APPROACHES FOCUS ATTENTION ON FIVE BASIC
MODELS:

1. Ranking method
2. Classification/Grading Method
3. Point Rating Method
4. Factor Comparison / Weight-in-Money Method
5. Competitive market analysis method
DISCUSSIONS ABOUT JOB EVALUATION APPROACHES
FOCUS ATTENTION ON FIVE BASIC MODELS:
 METHODS OF JOB EVALUATION –
NON-ANALYTICAL AND ANALYTICAL
METHODS

The methods of job evaluation can broadly be

classified as:

Method # 1. Non-Analytical:

These are traditional and uncomplicated procedures.

It take into account all of the available jobs,
compare them, and then rank them.

Non-analytical methods of job evaluation are:

i. Ranking method
The entire job is compared to the other set of jobs in
this approach, and then ranked based on its
substance and difficulty in executing it.
ii. Job Classification Method:

Also known as Job-Classification Method

Under this method the job grades or classes are

predetermined and then each job is assigned to these and
is evaluated accordingly.

Method # 2. Analytical:
The jobs are divided down into separate tasks using these
ways. For each position, various aspects such as skill,
responsibility, education level, and so on are evaluated. For
meaningful interpretation, factor by factor comparisons are
done, often with points or monetary sums assigned to each
factor.

i. Factor Comparison Method:

The job is assessed, and ranks are assigned based on a
number of factors Viz. Mental and physical exertion, essential
supervisory abilities, workplace environment, and other
pertinent aspects are all factors to consider. For each set of
jobs, these variables are expected to be constant. As a result,
each position is scored based on how well it compares to the
others.
These capabilities are considered as critical factors,
which can be grouped as listed below:

a. Mental requirements (education, alertness, judgment,

initiative, creativity, ingenuity, versatility)

b. Skill requirements (use of equipment and materials,

dexterity, precision)

c. Physical requirements (strength, endurance)

d. Responsibility (for the safety of others; for equipment,

materials, processes; cost of error; extent of supervision
exercised)

e. Working conditions (work pressure, accident hazard,

and environment).

ii. Point-Rating Method:

Under this method, each job’s key factor is identified and
then the subfactors are determined. These sub-factors are
then assigned the points by its importance.
Method # 4. The Factor Comparison Method

A method of evaluating jobs for the purpose of setting

wage or salary levels in which positions are compared to
certain benchmark jobs in terms of compensable job
factors

The analyst or committee selects some key jobs for which

job descriptions and wage rates are agreed upon and are
acceptable to the workers and management. Each job is
ranked several times, once for each of the job factors
selected.
Method # 5 Competitive market analysis method

Job evaluation forms the basis for market pricing. You

utilize job descriptions to compare jobs to like positions
within the external marketplace. Pay data are collected
from published sources and the value of the position within
the competitive market is determined.

Step # 4. Creating the Job Hierarchy:

Arrangement and organization of individuals within a

corporation according to power, status, and job function
STEPS
STEPS IN
IN THE
THE JOB
JOB EVALUATION
EVALUATION PROCESS
PROCESS

Gather information on
Review the choices of job
each job within the
evaluation methods such as
organization, analyzing job
job ranking, classification,
content to make sure it is
factor comparison and point
clear and understandable;
factor analysis and select
job content can be
the method most appropriate
revealed utilizing job
to meet the organization’s
questionnaires, job
needs.
descriptions, interviews
and/or work site visits.
STEPS
STEPS IN
IN THE
THE JOB
JOB EVALUATION
EVALUATION PROCESS
PROCESS

Evaluate each position

Ensure that each job
utilizing the chosen
description lists pertinent
method and link the
accountabilities and
ranked job to the
responsibilities; revise or
organization’s existing
expand job descriptions
compensation system or to
using the information
a newly developed pay
collected.
structure.
STEPS
STEPS IN
IN THE
THE JOB
JOB EVALUATION
EVALUATION PROCESS
PROCESS

Create the appropriate

pay grades and pay
ranges in the pay
structure and along with
policies and procedures
setting out employee
progress within the range.
 o n - i a l
N anc
F i n

Compensation

Presented by: Janilynn Obdosantos

 o n - i a l
N anc
F i n Co mpe nsation

It is a compensation rewarded to employees in

non-monetary terms. This type of compensation
usually deals with appreciation which is
considered as another form of value given.
 o n - i a l
N anc
F i n Co mpe nsation

"Exhibits the value of acknowledgment, well-being,

security, and enjoyment."
 Total Reward

Financial Non-Financial
Compensation Compensation

Base Pay
Variable Pay
Benefits
 Total Reward

Financial Non-Financial
Compensation Compensation

Base Pay
Variable Pay
Benefits
Recognition / Flexible working Privileges /
Appraisals conditions Services

Program / Title /
Activities Opportunity

Recognition / Flexible working Privileges /

Appraisals conditions Services
Service Recognition Extra Leave Free massage
Employee of the Year Hybrid working approach sessions and Mental
check-ups
Company shuttle
services

Program / Title /
Activities Opportunity

Recreational Clubs
One-on-one meetings
Work-life courses
Volunteering
Sports Competition
Non-Financial
Compensation
vs.
Benefits
Importance of

Non-Financial
Compensation
 n t h is fie ld
to w o r k i
n a ch a n c e p e
If giv e r e, w h a t t y
ne a r f utu
or k i n th e w ou ld
of w om p e ns a tio n
fin a n cia l c
of non- em p lo y ee s a n d
a r d y o ur
yo u r ew
why?

o n - i a l
N anc
F i n Compensation
THANK YOU !