Compensation and Benefits

This article discusses the major five elements of compensation mix and their relation with the compensation mix of a bank manager and HR generalist. It highlights the difference in compensation mix and suggests compensation for both positions. The article also explains the reason behind the difference in compensation mix due to the difference in job responsibilities.

Running head: COMPENSATION AND BENEFIT
Compensation and Benefits
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Author’s Note

1COMPENSATION AND BENEFIT
The major five elements of compensation mix are basic salary, bonus, incentives, profit
sharing and commissions. The following discussion relates these components with the
compensation mix of a bank manager and HR generalist.
The basic salary of a bank manager is from C$ 47,865 to C$ 86,481 and for HR
generalists is from C$ 40,136 to C$ 67,281. After that, the amount of bonus and incentive for the
bank manager is from C$ 3,041 to C$ 15,634; and this amount for the HR generalist is from C$
0.00 to C$ 6,086. The profit sharing portion of the bank manager is from C$ 1.01 to C$ 5,047;
and the amount is from C$ 395 to C$ 3,418 for the HR generalist. The bank manager is entitled
to get C$ 4500 as commission while the HR generalist is not entitled to get commission. Thus,
the total compensation for the bank manger is from C$ 44,053 to C$ 98,706; and for the HR
generalist is from C$ 39,134 to C$ 68,552.
From the above table, it can be observed that there is a clear difference between the
compensation mix of a bank manager and a HR generalist as the compensation mix of the first is
higher than the latter. Both the starting range and maximum range of the basic salary for the bank
manager is higher than that of the HR generalist. The same trend can be seen for bonus and profit
sharing. However, the HR generalist is not entitled for commission where commission is
included in the compensation mix of the bank manager. It needs to be mentioned that both the
position requires some different set of skills, knowledge and other characteristics to get success
and all these aspects create the difference in the compensation mix. The bank managers is
responsible for the overall development of the bank and thus, he/she needs to acquire many skills
like people management, sales management, money management, human resource management,
resource management and others. It implies that he/she should have knowledge and skill in every
aspect of the bank. At the same time, HR generalist is responsible for only managing the human

2COMPENSATION AND BENEFIT
resources of the organization. Thus, the required skills are management of employee relation,
recruitment, compensation and benefit management, performance management, legal compliance
and others. Hence, the job responsibilities of the bank manager are greater than the HR generalist
and it contributes to the high compensation of bank manager than the HR generalist (Gomez-
Mejia, Berrone & Franco-Santos, 2014).
The suggested compensation of a bank manager should be C$ 100,000 and C$ 70,000 for
a HR generalist. In case of the bank manager, the basic pay should be 50% of the whole
compensation that is C$ 50,000. After that, long-term and short-term incentives of the bank
manager will be of 20% each of the total compensation that is C$ 20,000 each. Lastly, indirect
payment will be of 10% of the total compensation that is C$ 10,000.
In case of the HR generalist, the compensation mix will be different as there are three
major components. Basic pay will be of 60% of the total compensation that is C$ 42,000. After
that, indirect pay will be of 25% that is C$ 17,500; and performance pay will be of 15% of the
total compensation that is C$ 10,500.
The LTI and STI of the bank manager include cash, shares of the bank and performance
right. In case of the HR generalist, the performance payment will depend on the achievement of
the target of the HR specialist. In this portion, certain portion of performance pay will depend on
the overall achievement of the group target. For both the bank manager and the HR specialist,
indirect pay includes certain specific facilities like reimbursement of medical fees, car
allowances and other non-cash benefits (Moore & Viscusi, 2014). These compensation structures
are suggested due to the difference in the job responsibilities of a bank manager and a HR
generalist.

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4COMPENSATION AND BENEFIT
References
Branch Manager, Banking Salary (Canada). (2018). Payscale.com. Retrieved 10 February 2018,
from https://www.payscale.com/research/CA/Job
Gomez-Mejia, L. R., Berrone, P., & Franco-Santos, M. (2014). Compensation and organizational
performance: Theory, research, and practice. Routledge.
Human Resources (HR) Generalist Salary (Canada) . (2018). Payscale.com. Retrieved 10
February 2018, from https://www.payscale.com/research/CA/Job
Moore, M. J., & Viscusi, W. K. (2014). Compensation mechanisms for job risks: wages,
Workers' Compensation, and product liability. Princeton University Press.