Total Compensation Methods
Compensation is widely considered as a primary source of motivation for the employees within an organization.in most scenarios people look for jobs which not only suite their creativity and talents but those which compensate them in terms of salary and benefits. Compensation is one of the fastest changing fields when it comes to Human Resource as companies are going ahead with investigations of various ways that can be used for rewarding employees commensurate to their performance. Within any organization there is need to ensuring that the turnover ratio is well maintained while at the same time retaining the best employees. Compensation and benefits are two sure ways that a company can use to achieve such things. This paper therefore looks at some of the common compensation strategies that are found within organizations, analyses the impact of various compensation methods used and also highlight how the salaries and benefit administration relates to the organization culture and performance.
Compensation and benefits strategies
These are ways through which organizations use to pay, recognize and reward the contribution of employees to the success of an organization. Compensation is a systematic approach used for providing a monetary value to the employees in exchange for their work performance. There are internal and external factors which influence either directly or indirectly the compensation rates and programs that are implemented in an organization. The external factors include labor market conditions, average wage rates in the market, the cost of living, collective bargaining and so on. The internal factors on the other hand include the worth of a job, employer compensation policy and the employer's ability to pay. The compensation programs and policies have to be communicated thoroughly and clearly to the employees. Employees normally want to clearly understand what they are expecting in terms of their compensation and appraisal. Therefore, employers are urged to ensure that they have details of the compensation programs...
Total Compensation Methods Impact of various compensation methods and benefit programs on employees and organizations. The compensation term is used for the combination of salaries, benefits and wages for the employee. It also includes hourly or annual salary, bonuses, benefits and incentives like short-term disability insurance, retirement plan and health coverage. Thus, a comprehensive package includes a combination of different components. The collection of all components is relevant to "Employee Compensation Plan"
Total Compensation Methods and Benefits Programs Impact on employees and organizations Salary and benefit administration strategies Relationship with organizational culture and performance Total compensation methods used by the organizations are different in terms of their design and approach. The main objective of the compensation programs developed in organizations is to facilitate employee motivation and provide a cost effective reward system that is beneficial for both employees as well as the business. The business objectives,
Paying workers according to their performance is controversial in some fields, but accepted in other fields, such as sales. The types of bonuses offered to employees in some professions, from sales to investment banking, are another aspect of 'total compensation' that might affect an employee's decision to remain at a company. Some bonuses might be traditional 'lump sum' payments while others might take the form of smaller bonuses, paid upon
Most firms will also reward good values such as honesty, commitment, and good relations with customers. While in most cases, employees will develop positive feelings about internal equity if they feel they are being paid fairly depending on how perfectly reward management works in the organization, but there is always a time when they will compare their salaries with those of others in the industries. This gives rise to the
Compensation Benefit Recommendations What companies in the relevant market are providing to employees A perfect compensation package is as different as the present workforce itself is. Indeed, it must be in place for organizations to attract and retain the best employees. Workers vary extraordinarily in age, sex, location, and marital status. They additionally doubtlessly differ in the way they work from home or at the workplace. Using a phone, a computer, or
Total Awards Overview- There are a number of approaches to organizational behavior, maximization of groups, innovative working environments, and solution oriented models for business that are adaptive to the needs of the new workforce. Human resources experts all agree that the modern work situation is dramatically different from that of even the 1980s and 1990s. The new generation has different expectations about work, about their participation, and about management. Organizations are
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