Introduction:
Mission
Dutch-Bangla Bank is Bangladesh's most innovative and technologically advanced bank.
Dutch-Bangla Bank Ltd stands to give the most innovative and affordable banking products to
Bangladesh. Amongst banks, Dutch-Bangla Bank is the largest donor in to social causes in
Bangladesh. It stands as one of the largest private donors involved in improving the country.
Dutch-Bangla Bank is proud to be associated with helping Bangladesh as well as being a leader
in the country's banking sector.
Vision
Dutch-Bangla Bank engineers’ enterprise and creativity in business and industry with a
commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's
operation, because "man does not live by bread and butter alone".
Objective
Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics,
music and entertainment, science and education, health, and hygiene, clean and pollution free
environment and above all a society based on morality and ethics make all our lives worth
living. Dutch-Bangla Bank 's essence and ethos rest on a cosmos of creativity and the marvelmagic of a charmed life that abounds with spirit of life and adventures that contributes towards
human development.
Dutch-Bangla Bank believes in its uncompromising commitment to fulfil its customer needs
and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed
clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds
and epitomizes its vaunted marquees "Your Trusted Partner"
Dutch Bangla Bank has been using world famous Core Banking Solution, Flex cube Retail
(FCR) and Flex cube Corporate (FCC) from the house of Oracle Corporation since 2004. In
the course of time, the bank has grown very large. The mass people of the country have put
their trust, faith and confidence on Dutch Bangla Bank, the technology being one of the most
important factors in doing so. The Dutch Bangla Bank management, officers and executives
are well concerned about it and trying to meet their expectations. Dutch Bangla Bank has never
allowed the interest of its valued clients to fall. Considering these, the Dutch Bangla Bank
management has decided to upgrade its Core banking Solution from FCR & FCC to Flex cube
Universal Banking Solution.
Though it is being termed as an upgradation, it was actually a full Implementation. A core team
comprising of 18 best resources of the bank from different branches and of various discipline
(e.g., General Banking, Credit, Foreign Trade etc.) was formed. They were assisted by an
equally numbered strong technical team of IT division. Both the teams have worked united
months after months day and night under a project. Every module, every functionality has been
explored and matched with bank's requirements. All the products and services rendered by the
bank have been parameterized, configured and tested. Dummy End of Day (EOD), End of
Quarter (EOQ), Half year-end, Year-end processes have been run in the User Acceptance Test
(UAT) cycle. At the end, the project is in live operation since August 2012. With this
upgradation Dutch Bangla Bank is able to serve its valued clients even better and it has given
Dutch Bangla Bank a technological advantage over other banks in the country.
Dutch Bangla Bank pioneered Mobile Banking in Bangladesh. It was the first bank to offer
banking facilities through a wide range of mobile phones. Rocket is a Banking process without
bank branch which provides financial services to unbanked communities efficiently and at
affordable cost. To provide banking and financial services, such as cash-in, cash out, merchant
payment, utility payment, salary disbursement, foreign remittance, government allowance
disbursement, ATM money withdrawal through mobile technology devices, i.e., Mobile Phone,
is called Rocket.
Real time on-line banking online banking available anytime, anywhere throughout the country.
Dutch Bangla Bank Rocket currently allowing customers with some essential services likes
Customer Registration, Cash-in (cash deposit), Cash-out (cash withdrawal), Mobile Top-up,
Person to Person Transfer (P2P), Foreign Remittance, Salary Disbursement, Balance Inquiry,
Bill Payment, Merchant payment.
Following the successful launch of the Rocket services, DBBL realized the potential to increase
customer reach by offering Agent Banking services through agents for the rural customer who
does not have access to formal banking system even through Mobile Banking.
For smooth operation of Agent Banking function, a separate Department in the name and style
"Agent Banking Department" has been created. The Department will serve wide range of
customers throughout the country by providing banking and financial services with the help of
mobile telecommunication devices/ computer system/ using biometric technology. Especially
for clients in remote locations, Agent Banking Department will help them deposit and withdraw
funds and other admissible services at banking agents, i.e., retail outlets that turn Deposit to
electronic funds and vice versa. With the help of the agent banking service customer can enjoy
the convenience of banking service at any place of the country.
Executive Summary:
Dutch Bangla bank is a priority banking.
Compensation components
Compensation Strategy is one of the most important strategies in the HRM Function as it
influences the costs of the organization and potential bad decision can lead to very serious
damages to the organization. The compensation strategy drives the compensation policies and
compensation processes in the organization. The compensation strategy provides the
organization with the vision of its compensation drives the effort of HR employees and
manages the investments into the human capital. The compensation strategy sets the limits for
the compensation and benefits section, provides the business with the predictability of the
personnel expenses and helps to control the personnel expenses efficiently. The compensation
strategy defines the priorities in compensation and benefits section. The well managed
compensation increases the performance and satisfaction of employees. The employees have
the assurance of being rewarded the same manner and using the same principles across the
organization.
We all know that DBBL Bank Limited is a leading and fastest growing private commercial
bank in Bangladesh. To ensure employee motivation and satisfaction DBBL Bank Ltd
maintains a competitive compensation program. DBBL Bank awards bonus with its employees
from the profit it earns every financial year. DBBL Bank won many prestigious awards which
is the indicator of good management skill and effort of the employee. The bank always
acknowledged the valuable contribution made by its employees for the continuous superb
achievement every year. The bank created a sense of community among the employees by
encouraging communication with each other in the Management committee Meeting and across
the department and divisions. This discussion helped the employee to learn each other jobs and
roles and develop an understanding about the bank as a whole. They also organize training
programs and workshops to improve the skill of the employee. DBBL Bank Ltd has entered
into agreement with some good medical center for providing service to the bank’s employee
and family members at concession rate. Staff welfare fund has been created for securing the
employees form accidental loss. There is some interesting activity that normally a bank cannot
do but DBBL Bank do. The Bank arrange annual picnics, family nights where employee
participate along with their family members. In this benefit scheme the branch managers can
travel to neighboring countries with their family members. DBBL will bear their expenses.
Various attractive retirement benefits are in place. DBBL bank offers festival bonus during
EID, and on other different occasions. Deserving candidates are given a regular basis
promotions and increments. To promote entrepreneurial skill and actions, encourage people to
assume responsibility and to encourage people to assume responsibility and to encourage
compliance culture, some of the remuneration which was paid indiscriminately earlier has been
made performance based and result oriented. As such the annual assessment process has gone
through major changes. It is hoped that new system will provide sustained support for Bank’s
contentious success. DBBL Banks reward and benefits practices aim to support in attracting
and retaining the best people for the organization. To maintain an attractive salary and benefit
package, they regularly compare themselves to a select group of other businesses and reward
higher performance by individuals and teams.
Compensation components provide by the DBBL Bank Ltd to all level employees which
include:
 Pay for work performance is money paid to someone relating to how well one works.
It includes money provided in the short term can be weekly, monthly and annual bonus.
DBBL Bank Ltd provides 2 annual bonuses, 2 performance increments (varies on
performance) to all level employees.
 Pay for time not worked: This compensation dimension include holiday, vacation,
sick leave, emergency leave etc. Workers have enjoyed more days off with pay for
holidays, longer paid for vacations and time paid off for a wide variety of personal
reasons. DBBL Bank Ltd provides 50 paid holidays and 2.5 months maternity leave for
women employee.
 Loss of job income continuation: Varity of components such as unemployment
insurance, supplemental unemployment benefits, severance pay help unemployed
workers subsist until new employment opportunity arise. DBBL Bank Ltd provides
insurance; provide fund form the Employee welfare foundation if the employee became
sick and grantee annual income.
 Disability income continuation: Varity of components include Short-term disability,
sickness, accident, Long-term disability, worker compensation, accidental death and
family care, group life insurance. DBBL Bank Ltd provide sick leave to employees both
short term and long term disability. DBBL Bank also provides group life insurance to
board of directors.
 Deferred Income: This compensation dimension include Pension plan, long-term
profit sharing, Individual retirement account, stock purchase plan, long-term
performance award. DBBL Bank Ltd have pension plan for their employee. A certain
amount they cut every month to their employee salary and return all the money when
an employee left the organization. They also provide award to those people who work
in the organization for long time.
 Income Equivalent Payments: Popularly known as PERKS. Most common perks
include use for company car, use for company credit card for dining, subsidized food
service. DBBL Bank provide company car facility for the board of directors, they have
dining room in most of the branches. They have some agreement with some good
hospital and diagnostic center to provide service to the employee and their family in
lower cost. DBBL Bank also provides transport facility for their employee. They also
give home allowance to the executives.
Non-compensation components
Non-Compensation rewards are all the situation related rewards not included in the
compensation package. These rewards have an almost infinite number of components that
relate to the work situation and to the physical and psychological well-being of each worker.
Non-Compensation components provide by the DBBL Bank Ltd
 Enhance dignity and satisfaction from worked performed: It is the least costly and
one of the most powerful rewards an organization can offer to an employee is to
recognize the person as a useful & valuable contributor. This kind of recognition leads
to employee feeling of self-worth and pride in making a contribution. Every
compensation and non-compensation reward component should carry with it the
massage “We need you and appreciate your efforts”. DBBL Bank Ltd provides a safe
and well decorates workplace for their employee. Their all branches are air-conditioned
and secured by good security companies.
 Enhance Physiological Health, Intellectual Growth, and Emotional Maturity:
DBBL Bank Ltd. has agreement with some well-known medical diagnostic center and
hospital to provide health service to the employees and their families in low cost.
 Promote constructive social relationships with coworkers: An organization success
depends on a good relationship with the co-worker. DBBL Bank Ltd. always tries to
maintain such an environment so that all the employees feel like to be same member in
a large family.
 Offer supportive leadership and management: DBBL Bank ltd. provides promotion
to employees who have good skill and knowledge. So those employees who shown
some efficient activity they can get a good position in the organization
 Grant sufficient resources to perform work assignments: DBBL bank Ltd. provides
sufficient resource to perform work assignment. Each executive has a personal desk,
computer, file cabinet, credit card etc. These types of resources help the employees to
perform job properly and efficiently.
Compensation Package of DBBL Bank Limited
By ensuring benefit for employee DBBL Bank design their compensation package. The top
executive to the operating level employee and their compensation package information is given
below:
Profit Sharing: DBBL Bank awards bonus with its employees from the profit it earns
every financial year.
Gain Sharing: DBBL Bank awards bonus to the employees for surpassing
predetermined performance goals.
Lump-Sum Bonus: DBBL Bank pays onetime bonus or sometimes gives opportunity
to buy shares of the bank based on the competitive performance of the employee.
Festival Bonus: DBBL bank offers festival bonus during EID, Pohela Boishak and on
other different occasions.
Loan Facilities: DBBL bank also proves Car loan, Housing loan and also other certain
allowances such as car allowance, mobile and free transport service.
Cost of Living Adjustments: They also have a service plan for the employees called
"COLA" (Cost of Living Adjustments) in which the employees get cost of living
adjustments if inflations occur.
Some Special Compensation that DBBL Bank provide for their top executives:
 The compensation package of Managing Director is very attractive. This type of jobs
is mainly based on contract basis.
 The MD of DBBL Bank limited get a house, one car, driver for the car, a security guard,
Mobile phone, telephone bill, medical allowances and so on. As MD is the key person
of DBBL Bank Limited he gets the most benefit.
 DMD (Deputy Managing Director) do not get house form the bank but he get one car,
telephone bill, driver for car, loan facility, and so on.
 The Senior Executive Vice President gets car loan, car maintenance, home loan, limited
telephone bill, gratuity, insurance facility.
 The Executive Vice President and Senior Vice President get same kind of facility. The
Vice President get car loan, car allowance, home loan, gratuity and some other facility.
1. What are the CM problems and issues facing DBBL bank?
A Brief Discussion about DBBL Compensation is a systematic approach to provide monetary
value to employees in exchange of work performed. Compensation may achieve several
purposes assisting in recruitment, job performance, and job satisfaction. According to
Henderson “a step-by-step approach for designing a remuneration system that recognizes job
requirements, employee related knowledge and skills and performance related incentives that
link individual, work unit and organizational performance”. Total remuneration also includes
a host of benefits that protect and expand the lifestyle and health of workers and their families.
Compensation is the remuneration received by an employee in return for his/her contribution
to the organization. It is an organized practice that involves balancing the work-employee
relation by providing monetary and non-monetary benefits to employees. Compensation is an
integral part of human resource management which helps in motivating the employees and
improving organizational effectiveness.
Recruit and retain qualified employees. Increase or maintain morale/satisfaction. Reward and
encourage peak performance. Achieve internal and external equity. Reduce turnover and
encourage company loyalty. Modify (through negotiations) practices of unions.
Compensation will be perceived by employees as fair if the approach is based on systematic
components. Various compensation systems have developed to determine the value of
positions. These systems utilize many similar components including job descriptions, salary
ranges/structures, and written procedures.
Direct compensation is remuneration provided to employees in exchange for their labour and
services. What makes it direct is that it is given to the employee without an intermediary. Under
direct compensation there are two sub types of compensation.
It consists of wages and salaries received for performing work. It can be base pay and merit
pay based on job performance. They are provided for higher performance. They can be piece
wage, commission, bonus, profit sharing, stock option etc.
Direct compensation refers to monetary benefits offered and provided to employees in return
of the services they provide to the organization. The monetary benefits include basic salary,
house rent allowance, conveyance, leave travel allowance, medical reimbursements, special
allowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time.
Indirect compensations are provided for the employees benefit, but are not given directly to the
employee. Under indirect compensation there are two types of compensation
Newspapers, telephone rental etc.
reduced cost to employees.
s
-cultural recreational activities; club subscriptions.
Indirect compensation includes Leave Policy, Overtime Policy, Car policy, Hospitalization,
Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday homes.
Reinforcement and Expectancy Theories Reinforcement theory states that a response followed
by a reward is more likely to recur in the future (Thorndikes Law of Effect). The implication
for compensation management is that high employee performance followed by a monetary
reward will make future high performance more likely. By the same token, high performance
not followed by a reward will make it less likely in the future. The theory emphasizes the
importance of a person actually experiencing the reward. Like reinforcement theory,
expectancy theory (Vroom, 1964) focuses on the link between rewards and behaviors
(instrumentality perceptions), although it emphasizes expected (rather than experienced)
rewards (i.e., incentives). Motivation is also a function of two other factors: expectancy, the
perceived link between effort and performance, and valence, the expected value of outcomes
(e.g., rewards). Compensation systems differ according to their impact on these motivational
components. Generally speaking, pay systems differ most in their impact on instrumentality:
the perceived link between behaviours and pay also referred to in the pay literature as "line of
sight." Valence of pay outcomes should remain the same under different pay systems.
Expectancy perceptions often have more to do with job design and training than pay systems.
Equity Theory Equity theory suggests that employee perceptions of what they contribute to the
Organization, what they get in return, and how their return-contribution ratio compares to
others inside and outside the organization, determine how fair they perceive their employment
Relationship to be (Adams, 1963). Perceptions of inequity are expected to cause employees to
take actions to restore equity. Unfortunately, some such actions (e.g., quitting or lack of
cooperation) may not be helpful to the organization. Two recent empirical studies provide good
examples of the types of counterproductive behaviours that can occur as a result of perceived
inequity. In the first study, Greenberg (1990) examined how an organization2 communicated
pay cuts to its employees and the effects on theft rates and perceived equity. Two organization
units received 15% across the-board pay cuts. A third unit received no pay cut and served as a
control group. The reasons for the pay cuts were communicated in different ways to the two
pay-cut groups. In the "adequate explanation" pay-cut group, management provided a
significant degree of information to explain its reasons for the pay cut, and also expressed
significant remorse. In contrast, the "inadequate explanation" group received much less
information and no indication of remorse. The control group received no pay cut (and thus no
explanation). The control group and the two pay-cut groups began with the same theft rates
and equity perceptions. After the pay cut, the theft rate was 54% higher in the adequate
explanation group than in the control group. However, in the "inadequate explanation"
condition, the theft rate was141% than in the control group. In this case, communication had a
large, independent effect on employees’ attitudes and behaviours. Cowherd and Levine (1992)
used a sample 102 business units in 41 corporations to examine whether the size of the pay
differential between lower-level employees and top management had any impact on product
quality. Cowherd and Levine suggest that individuals often compare their pay to that of people
higher in the organization structure. If lower-level employees feel inequitably treated, they may
seek to reduce their effort to achieve equity. Quality, in their study, was defined as customer
perceptions of the quality of goods and services. They hypothesized that extra role, or
citizenship behaviours, such as freely offering to help others, following the spirit rather than
letter of rules, and correcting errors that would ordinarily escape notice, would be less likely
when pay differentials between hourly and top managerial employees were large. Their results
supported this hypothesis, suggesting that Employees may use other comparisons standards
also, such as their previous or expected future jobs or cost of living. Organizations need to take
care that they not forget the potential adverse motivational consequences of executive pay for
the motivation of other employees.
Agency Theory Agency theory, until recently best known in the economics, finance, and law
literatures, focuses on the divergent interests and goals of the organization’s stakeholders, and
the ways that employee compensation can be used to align these interests and goals (Eisenhardt,
1989; Fama &Jensen, 1983). Ownership and management (or controls) are typically separate
in the modern corporation, unlike the days when the owner and manager was often the same
person. With most stockholders far removed from day-today operations, so-called agency costs
(i.e., costs that arise from the interests of the principals/owners and their agents/managers not
converging are created. What is best for the agent/manager may not be best for the owner.
Examples of agency costs include management spending money on perquisites (e.g.,
"superfluous" corporate jets) or "empire building" (acquisitions that do not add value to the
company but may enhance the manager’s prestige or pay) rather than seeking to maximize
shareholder wealth (Lambert & Larcker, 1989). In addition, the fact that managers and
shareholders may differ in their attitudes toward risk gives rise to agency costs. Shareholders
can diversify their investments (and thus their risks) more easily than managers can diversify
risk in their pay. As a consequence, managers may prefer relatively little risk in their pay (e.g.,
high emphasis on base salary, -low emphasis on uncertain bonuses or incentives). Indeed,
research shows that managerial compensation in manager-controlled firths is more often
designed in this manner (Tosi & Gomez-Mejia, 1989). Agency costs also stem from differences
in decision-making horizons. Especially where managers expect to spend little time in the job
or with the organization, they may be more inclined to maximize short-run performance (and
pay), perhaps at the expense of long-term success. Agency theory is also of value in the analysis
and design of non-managers compensation. In this case, the divergence of interests may exist
between managers (now in the role of principals) and their employees (who take on the role of
agents). In designing either managerial or non-managerial compensation, the key question is,
"How can such agency costs are minimized?" Agency theory says that the principal must
choose a contracting scheme that helps align the interests of the agent with the principals own
interests (i.e., reduces agency costs). These contracts can be classified as either behaviour
oriented (e.g., merit pay) or outcome oriented (e.g., stock options, profit sharing, commissions).
At first blush, outcome-oriented contracts seem to be the obvious solution. If profits are high,
compensation goes up. If profits go down, compensation goes down. The interests of "the firm"
and employees are aligned.
important drawback, however, is that such contracts increase the amount of risk borne by the
agent. Furthermore, because agents are averse to risk, they may require higher pay (a
compensating wage differential) to make up for it. Behaviour-based contracts, on the other
hand, do not transfer risk to the agent, and thus do not require a compensating wage differential.
However, the principal must be able to monitor with little cost what the agent has done.
Otherwise, the principal must either invest in monitoring/information or structure the contract
so that pay is linked at least partly to outcomes.
Risk aversion. Risk aversion among agents makes outcome-oriented contracts more costly.
Outcome uncertainty. Profit is an example of an outcome. Linking pay to profits (outcomebased contract) is more costly to the extent that profits vary and so there is a risk of low profits.
Job programmability. As jobs become less programmable (i.e., less routine and less structured),
and more difficult to monitor, outcome-oriented contracts become more likely. The increasing
complexity of organizations and technology makes monitoring more difficult and may help
explain the growing use of variable pay programs (discussed below), which are examples of
outcome-based contracts. Consistent with this idea, outcome-oriented contracts (e.g., profit
sharing and stock plans) are more prevalent in research and development organizations, where
monitoring is especially difficult (Milkovich, Gerhart, & Hannon, 1991). Pay levels are also
higher, consistent with the idea that employees must be compensated for sharing more risk.
Measurable lob outcomes. When outcomes are more measurable, outcome-oriented contracts
are more likely. Ability to pay. Outcome-oriented contracts contribute to higher compensation
costs because of the risk premium. Tradition. A tradition or custom of using (or not using)
outcome-oriented contracts will make such contracts more (or less) likely.
No employer agrees to provide actual individual salary for the benchmark jobs as this is
confidential between the employer and the employee. Where a job is held by one person, the
individual’s actual salary has been shown. Where 2/3 benchmark jobs fall under one grade,
actual average of that grade has been taken. Where actual average has not been available, the
meaningful point of the salary range, applicable to the job grades of the benchmark has been
taken.
Personal / Special / Other Allowance Specific amounts paid in cash as allowances have been
utilized. Quite a few costs are lumped into this and paid in cash. With reduction of personal tax
slabs, employers are opting for a more transparent pay system conforming to the tax
regulations.
Group Term Life Insurance the Bank provides coverage of life insurance to all Permanent
employees after their joining with the organization effective on the date of joining. To
participate in the Group Term Life Insurance policy, all employees are required to fill up
"Group Term Life Insurance Registration Form” and submit to HR/Personnel & Admin dept
for processing. To change the beneficiary at any time, the employee must complete the
“Beneficiary Change Form” and submit to the Human Resource Department or to the Personnel
& Admin dept. for making the changes.
1. What sort of CM approaches do you think need to be taken to ensure ongoing
strategic competitive advantage
A strategic compensation strategy guides an organization’s approach to managing total
employee compensation. In the past, compensation may have been just a paycheck, but today
it’s much more. Employees seek employers that not only pay them a competitive wage, but
also provide benefits and programs which help them address other financial costs, such as
healthcare and retirement plans.
“Given strong economic performance across many U.S. industries in 2018, employees hold
much higher expectations for greater increases in wages and bonuses going into 2019,” a vice
president from Gartner told the Society for Human Resource Management (SHRM).
“Executives will need to factor in these employee expectations to remain competitive and to
attract and retain talent; otherwise, they risk losing their best workers to competitors.”
Organizations that have a strategic approach to compensation should use it to not only manage
employee pay and benefits, but also to attract and retain talent. To reap the benefits of a
strategic compensation strategy, it’s essential that companies proactively communicate total
compensation to their workforce. When done well, strategic compensation becomes a way of
building trust in the workplace.

Ask for Employee Input
Of course, employees aren’t going to be part of the team that determines salaries; however, you
can ask for their input about total compensation. Find out what benefits matter most to your
workforce. Younger employees may be interested in a daycare subsidy, while older employees
might be more focused on retirement plans. By asking for input, you can create an informed
strategic compensation approach that fits with your talent management strategy and will satisfy
most employees.

Benchmark against Competitors
As mentioned above, your compensation plan and employee benefits are a way to attract talent.
To remain competitive in your industry and the locations where you conduct operations, take
time to benchmark what your competitors offer their employees. You may not be able to match
them item for item, but with this information you’ll be able to address gaps during interviews.
And you may be able to get creative about other, lower-cost options you can include in your
total compensation package.

Allocate Budget
Compensation planning doesn’t occur in a vacuum. Take a realistic look at your company’s
human resource and operational budgets. Identify the total amount you can spend on any one
employee. Factor in all costs, including taxes, payroll costs, existing benefits, compensation,
and bonuses. Include plans for performance or merit increases that will take place as part of
annual reviews.

Plan for Rewards
As you make your budget, consider how you can use total compensation as a way to engage
employees, increase performance, and entice them to stay. For example, you might offer a
retirement plan or additional vacation days to employees who have been with the organization
for more than a year. You might offer stock options as a bonus after 90 days. This is a way of
protecting your budget if employees don’t stay with the organization for a minimum amount
of time.

Determine Pay Grades
One way to establish a framework for compensation is to determine pay grades based on job
position and duties. For example, positions in pay grade one may be for entry-level roles, pay
grade two for technician roles, pay grade three for managers, and pay grade four for executives.
Having this framework allows an organization to define the amount of pay available based on
the job’s requirements and level. Pay grades take the guesswork out of salaries and also provide
employees with a range of what they can expect to make for any given role.

Confirm Compliance
Compensation strategy provides the big picture for an organization’s pay; however, the way
you implement and provide compensation must meet regulations. The Fair Labour Standards
Act (FLSA) sets the legal requirements for minimum wage, overtime, equal pay, recordkeeping, and child labour. It also has implications regarding payment practices, record-keeping,
taxes, pay checks, and withholding allowances. Some states have local compensation-related
regulations. Organizations should seek legal counsel to confirm compliance and ensure each
compensation strategy meets requirements.

Communicate About Total Compensation
When you communicate about total compensation, you want to make sure all employees have
access to the information they need. You also want to provide accurate, up-to-date information
to avoid issues. The gap between expectations and reality is one of the largest issues between
employers and employees that creates dissatisfaction. When you clearly communicate your
total compensation strategy, employees know what to expect and appreciate all the benefits
you’re providing, in addition to the pay. Be sure that as you communicate about total
compensation, you’re using it as an opportunity to celebrate everything that’s included in the
package. Employees want all the information available about compensation, so do your best to
make the communication engaging. An employee communication software tool can help you
deliver timely, engaging, and streamlined compensation communications.
2. What CM challenges will face in the 21st century?