Hr Report Essay

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Compensation in Sime Darby Berhad from payroll perspective

1 Introduction Employee compensation is define as all form of pay going to employees which arising from their employment and could be in the form of direct financial payments and indirect financial payment (Dessler, 2013, p. 378)[1].

There are two basic ways to make direct financial payment to employees based on increments of time or based on performance. This concept of payment method is applied by Sime Darby Berhad. Normally, Non-executive employees mostly consist of Blue-collar, operation workers, and clerical workers are paid based on time-based pay method.

Non- Executive workers normally required to work overtime. This is due to cater with
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In contrast, sales person especially in Motor Division compensation is paid based on performance. Despite the salary pay to sales person, commission on the volume of cars sales is also taking into account to compensate the sales person in Sime Darby Motors Division. Nature of work between clerical workers and sales person in Sime Darby Motors is almost different. Sales person involve in clerical work is very minimal. The main task of sales person is to sell car as much as possible irregardless of how much time they spend. Some of the sales person has to work in the showroom for more than 8 hours a day and some of them have to come to work on Saturday, but all the additional time they spend in the office will not be counted for their compensation.

However, all executive including middle level management up to top level management of Sime Darby Berhad in general compensation is paid based on their performance but not based on how much time they spend in the office. Some of them have to travel abroad and domestic frequently for business purposes. The scopes of work for top executive are totally different from those we mentioned earlier. Top executive deal with corporate mission and vision which they need to accomplish within their term of employment. Their task and responsibilities very broad encompass organization performance as a whole. Therefore, overtime pay, commission, shift allowance, and other benefit which meant to compensate

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