Taking a Look at Worker Compensation

787 WordsFeb 2, 20183 Pages
The Human Resource is one of the main departments in a business that was established to serve the rights of the employees and the policy of the organization. It is then divided into sub disciplines which consist of Compensation and Benefits as one of the essence in the structure of managing an entire workforce. As being mentioned in www.boundless.com, Compensation deals with the salary and wages of the employees. There are several definitions about Compensation, but generally, Compensation is the overall form of monetary or non-monetary pay that is given to the employees as a reward for their required services and relationship to the employer. (Susan M. Heathfield, n.d.) The importance of Compensation is relatively apparent to an organization as it affects the wellbeing and performance of an employee. Thus, it gives impacts to the operation of a fit organization. Therefore, compensation should be abided by the objectives of itself that focuses on the four main units which are efficiency, fairness, compliance and ethics. According to Rose Johnson of Demand Media, the objectives of instituting a compensation deal can be distributed into three specific parts – motivation, retention, and compensation law. To deliberate on how compensation influences employees’ behavior, it is only relevant to emphasize on the motivation of the employees. The idea of compensation stimulates the drive of an employee to strive their best to meet up to the expectations of the organization goals. The
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