Reading: Managing Employee Compensation and Benefits

•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

•Internal equity

•External equity

•Individual equity

•Attracting talent

•Retaining talent

•Cost control

•Compliance with legal rules

•Ease of operation

Systems to Achieve the Objectives