HR Practice For Payroll Practitioners

HR Practice for Payroll Practitioners

Remuneration Introduction

Having an effective reward and remuneration system in the workplace can ensure increased productivity and employee satisfaction while costing the business little by comparison. The performance and reward exchange is at the heart of the employment relationship. Management sets standards and measures outcomes achieved by employees and for that activity employees achieve rewards that are seen to be of value to them. Remuneration for the manager and employee is about providing a range of financial or monetary options that attract employees to their business and over time aids in retaining them. The key is to ensure that remuneration and the human resource in the organisation is cost-effective and relates to market measures as much as possible.

Defining remuneration

In this second section, we talk about remuneration – the financial payment that employees can receive from their employer:

What is remuneration? Determining pay rates

• •

• Different ways to pay the individual (skill-based versus competencies) • Paying for results (individual, team, organisation) • Understanding “total remuneration”

What is remuneration?

Definition

Remuneration

“Includes all the elements of financial remuneration and non-financial benefits that an employee can receive in working for an employer.”

Basically there are three elements of remuneration:

• Salary and wages (at a base level) • Short- and long-term incentives • Benefits and perks

© New Zealand Payroll Practitioners Association, Sep 2024, Ver 12

86