Reading: Managing Employee Compensation and Benefits
Compensation
•Compensation
is the method and practice of maintaining balance between interests of
operating the company within the fiscal budget and attracting, developing,
retaining, and rewarding high quality staff through wages and salaries which
are competitive with the prevailing rates for similar employment in the
competitive markets. It is the cornerstone of an effective talent management
strategy.
Nature
of Compensation
Objectives
of Compensation Planning
•Internal
equity
•External
equity
•Individual
equity
•Attracting
talent
•Retaining
talent
•Cost
control
•Compliance
with legal rules
•Ease
of operation
Systems
to Achieve the Objectives
•Job
evaluation
•Wage
and salary ranges
•Wage
and salary adjustments
Fringe
Benefits
•The
term “Fringe Benefits” refers to various extra benefits provided to employees,
in addition to the compensation paid in the form of wage or salary.
Last modified: Tuesday, August 14, 2018, 8:34 AM