Jasz
VIP Contributor
Compensation Management in HR
What is compensation? With this simple question, let's get our discussion on compensation management started. The perks or incentives that employees receive in exchange for their work can be very simply defined as compensation.
Bonuses, profit sharing, overtime pay, recognition prizes, sales commissions, and other payments are all considered forms of compensation. Non-monetary benefits like a company-paid automobile, company-paid housing, and shares may also be included in compensation. Housing and stock options paid for by the firm.
Human resource management includes compensation as a crucial component since it encourages employees and increases organizational effectiveness. The compensation package provided to a company's employees is important from the manager's perspective not just because it costs money, but also because it is probably the main reason the employees work for the company. Good compensation and benefits packages can aid in luring and keeping the top personnel. Employees want their pay to be reasonable, cover essential living expenses, keep pace with inflation, provide some money for savings (perhaps for retirement), and increase over time, according to a brief survey of workers on compensation.
The pay structure of a corporation can reveal a lot about its cultures and beliefs. Employees usually take into account a company's pay structure instead of what it advertises. Depending on how they are treated in return, people behave in various ways. The company's expectations for its employees are reflected in the remuneration plan. For instance, quality should be incorporated as a component of the total compensation system if it is a key value.
What is compensation? With this simple question, let's get our discussion on compensation management started. The perks or incentives that employees receive in exchange for their work can be very simply defined as compensation.
Bonuses, profit sharing, overtime pay, recognition prizes, sales commissions, and other payments are all considered forms of compensation. Non-monetary benefits like a company-paid automobile, company-paid housing, and shares may also be included in compensation. Housing and stock options paid for by the firm.
Human resource management includes compensation as a crucial component since it encourages employees and increases organizational effectiveness. The compensation package provided to a company's employees is important from the manager's perspective not just because it costs money, but also because it is probably the main reason the employees work for the company. Good compensation and benefits packages can aid in luring and keeping the top personnel. Employees want their pay to be reasonable, cover essential living expenses, keep pace with inflation, provide some money for savings (perhaps for retirement), and increase over time, according to a brief survey of workers on compensation.
The pay structure of a corporation can reveal a lot about its cultures and beliefs. Employees usually take into account a company's pay structure instead of what it advertises. Depending on how they are treated in return, people behave in various ways. The company's expectations for its employees are reflected in the remuneration plan. For instance, quality should be incorporated as a component of the total compensation system if it is a key value.
