Q: What are the common types of remuneration Items?

A: Common remuneration items include Guaranteed Cash (e.g. Basic Pay & Guaranteed Bonus), Regular Allowances (e.g. Meal Allowance, Shift Allowance & Hardship Allowance, etc), Variable Pay (e.g. Commission, Performance Bonus & Profit Sharing, etc) and Benefits (e.g. Life Insurance, Retirement Plan & Medical Provision, etc).

To remain competitive in nowadays business environment requires not only good planning, execution and control but also committed people working in alignment with company’s goals.  A meaningful system that helps manage performance and motivate staff to go “extra mile” is essential for organization success.  This workshop will equip participants with knowledge and field-proven techniques through a step-by-step approach for designing a compensation system that helps align staff performance with the corporate business strategies and advocate the “pay-for-extra” culture.

Module 1 - Basic Workshop
• Introduction to Compensation
• Different Compensation Elements
• How Economic Trend Influences Compensation Strategies
• Aligning Compensation Strategy with Business Strategies
• Establishing Compensation Strategies
• Influencing Forces to Compensation Strategies
• Case Study

Module 1 Details:
Date: January 13, 2010 (Wednesday)

• Designing Incentive Scheme
  - Reviewing the Corporate Directives and Strategies
  - Designing the Incentive Scheme
  - Establishing Corporate Performance Mgt. System
  - Establishing Individual Performance Mgt. System
  - Linking the Incentive Scheme with Measurement Results

Module 2 Details:
Date: January 15, 2010 (Friday)

To learn more on how HMI Consulting can help your company's management team to enhance corporate and departmental performance, please call (852) 3627 3673 or email to info@hmi.hk.

Economic Overview 

Retailers are hoping the sector’s latest sales data will show customers are resuming their shop-till-you-drop way, with many reporting stronger than expected Christmas sales. The Census and Statistics Department said the value of retail sales in November rose 11.7% year on year to a provisional HK$22.9 billion. Even after adjusting for price changes, the volume of retail sales rose 9.8 %. Meanwhile, the Hong Kong Trade Development Council released a report yesterday saying overall Christmas sales in the city’s key overseas markets had improved from last year, but the performances varied according to location. [Source: SCMP (B3)/ The Standard (P9)/ HKEJ (P6), 30 Dec 09] 

Moreover, Hong Kong’s exports last month recorded their first year-on-year growth since the global financial crisis started to bite late last year, but businesses are cautious on the short-term outlook. The latest figures released by the Census and Statistics Department showed exports last month surpassed HK$240.7 billion, rising 1.3% from November last year. Imports increased 6.5 per cent to HK$254.8 billion. A government spokesman said Asian markets continued to fare better than the United States and Europe, adding the slow recovery in the global economy should help trade in the coming months, lifting Hong Kong in the process. However, global economic prospects were still subject to considerable uncertainties. [Source: SCMP (B1)/ The Standard (P8)/ HKEJ (P9), 29 Dec 09]

On the other hand, employment and job vacancies declined over a year earlier, according to the latest statistics released by the Census and Statistics Department. Total employment decreased 1 per cent, which adds up to 24,000 people. The number of vacancies was down 8,900 over September a year earlier. Manufacturing, import-export and accommodation services took a significant hit with total employment down 4 to 5 per cent. Some industries like cleaning and janitorial services, education, human health services, residential care and social work showed some increase in the number of people employed. The food and beverage industry had the greatest number of job openings, with 6,530 vacancies, followed by professional and business services and retail trade. [Source: China Daily (H1), 22 Dec 09]

For manufacturing activity in mainland, it held at the fastest rate in 18 months in November. The official Purchasing Managers' Index for last month came in at 55.2, unchanged from October, said the China Federation of Logistics and Purchasing in Beijing. It represented the 9th consecutive month where the index has been above the threshold of 50 that indicates expansion. Another PMI index released by HSBC showed the mainland's manufacturing expanded last month at the fastest pace since April 2004, rising to a seasonally adjusted 55.7. [Source: SCMP (B2), 1 Dec 09] 

Disclaimer: Should there be any different views in the interpretation, please always refer to the original media source as reference. HMI Consulting accepts no liability in respect of the accuracy and truthfulness of the materials included in this newsletter.