Complete SOP Compensation and Benefit Management (CBM) (Document Bundle)

Complete SOP Compensation and Benefit Management (CBM)

Standard operating procedures (SOPs) provide HR teams with a standardized set of instructions to carry out procedures for attracting and retaining talent, managing employee performances, and implementing company-wide policies at scale.

HR teams wear many hats. From selling company values to potential employees and keeping existing employees happy, to maintaining legal compliance with security and payroll protocol, HR teams regularly juggle responsibilities that are mission-critical to every business' bottom line.

Each of these processes requires attention to detail, especially when managing sensitive communication with multiple employees, stakeholders, and vendors. Employees spend an average of five hours every week waiting to get in touch with people that have the knowledge they need. At scale, it's inefficient for anyone across the company to use up all this time scrambling for documents, templates and files every single time a new policy or team member is introduced.

You want to spend your time creating detailed documentation that your team can plug and play into regular company initiatives. SOPs serve as the foundation for current HR initiatives to be implemented smoothly while ensuring companies are able to improve and evolve existing processes for the future.

In Europe, there is often a focus on more social benefits, including parental leave, severance pay, and termination notice. In countries like France and Finland, it is not uncommon for employers to pay for restaurant vouchers that cover part of the employee's lunch.

When you receive a job offer, the first thing you look at is the salary. Whether the recruiter lists the wage as an hourly, weekly, monthly, or hourly rate, candidates see it as the most critical part of any job offer. Typically, when employees think about compensation, the salary is what they think of. But, for many employees (especially senior employees) compensation is far more than just the regular paycheck.

Benefits cover indirect pay. This can be health insurance, stock options, or any myriad of things offered to employees. All of these things are critical in any job offer. Two jobs that offer identical salaries may vary wildly in the benefits category, making one a better financial proposition than the other.

Overtime pay, stock options, 401k matches, pension plans, days off, and even free lunches make up an essential part of the compensation and benefits package.

Some benefits are country-specific. In the United States, health insurance makes up a key component of benefits. Who your employer is, determines your health care options – even down to which doctors you can see and which medications are covered.

Most often, compensation and benefits (commonly referred to as comp & benefits) fall under the responsibility of the Human Resources department. In a small company, an HR generalist would handle all aspects of this process, while in a large company, there would be dedicated departments to manage these.

Compensation and benefits are important for two reasons.

First, people won't work for you without pay. And unless you're a non-profit organization, it's illegal to ask them to work for you for free. There is a social contract between the employer and employee, where the employee puts in the work and the employer rewards this. Compensation and benefits are an important part of that equation.

Other things play a role too – and we'll discuss them later – but what the employee receives is central. In addition to salary, benefits remain a crucial motivator for job candidates.

Second, as of June 2019, benefits make up 31.4 percent of the cost of employing someone. It is a significant expense with a clear goal so it's not something businesses can overlook. This is why paying careful attention to a fair compensation and benefits structure is so important.

Thank you for your attention.

Regards,

UJ Consulting