Taking a Look at Worker Compensation

HR is the one responsible of the development of the organization compensation system and of the development of the pay structures, programs and policies.an effective compensation system will be focused on compelling with the law, cost-effectiveness, provide equity in all aspects and enhancement of the organization (Flynn, 2015).

The right compensation program will depend on the organization’s business strategy and goals. To achieve these, an organization must recruit and select the best possible employees. To attract such employees, there must be an attractive compensation plan. Competitors will be offering different payment options, this may be based on pay rate or special perks, and a company’s stock options. Organizations must be aggressive yet reasonable to compete with competitors. Retaining and encouraging employees to perform at their best may be achieved through an immediate incentive award

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

To obtain the desired education degree for the human resource career field, human resource management students must learn and complete various subjects during the education program as they would need to employ various skills in their practical life. Candidates studying the Human Resource Management discipline gain an insight into courses like Employee Compensation Management, Perspectives of Management Labor welfare, and Organizational Behavior (R. Palaciso, personal interview, 18 July 2010). The Employee Compensation Management course provides an analysis of the techniques and principles used to develop and instigate direct and indirect compensation programs and reward systems that are cost-effective. This course teaches students, as human resource, to attain and draw a highly

“Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction. Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according to the business needs, goals, and available resources.” The three careers I chose for this case study are Public Relations Specialist, High School Teacher, and

There are many people that would choose their life career around the benefits and compensation they may receive. Compensation is known as human resources function that deals with every type of rewards that one may receive in return for performing organizational tasks.()1

Compensation Benefits: Human Resources Management is responsible for designing a well-planned compensation system during restructuring that would benefit the employee and the organization. An effective compensation benefit package consist of base compensation which is fixed pay received on a weekly or monthly regular basis; an incentive pay is for job performance; benefit or indirect compensation which include health benefits , vacation, and privileges.

In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experience high turnover rate, the constant shifting in the job market will always be a contributing factor as well as employee’s moral. Mayhew, R. (2016), explains that an “employee compensation plan” refers to all the components offered as well as the way in which they are paid, and the reason behind the employees getting the compensation case bonuses, salary increases and incentives. The fact that there are voluntary and mandatory benefits that organization provides to their employees give employees the freedom of choice, as well as the option to make the whether to stay with or leave an organization based on the benefits it provides. Variable Pay is also an option that some employers offer their employee which is performance based or results oriented. Whether it is profit sharing, merit based programs or incentive bonuses; it all comes down to which organization can provide employees with the compensation or benefits packages that best satisfy their needs.

Nowadays, compensation plays important roles in the organisation. Compensation defined as remuneration that given to employees based on their contribution towards their organisation. Proper compensation helps to balance employee-work relation. Besides that, compensation is also improves strategic goals of human resource management. And, attractive compensation motivates employees in term of encouraging them to perform well. With that, employees’ performance increase productivity of the organisation. In other words, it creates job satisfaction; reduce high turnover and lower absenteeism. On the other hands, career advancement is always there. Again, compensation that offered by organisation attracts job candidates. There are three types of compensation

Compensation is defined as all forms of financial and non-financial rewards, benefits and tangible services that employee receives in return for the work from an organization (Milkovich, Newman & Gerhart, 2010). In recent years, most of the companies in Malaysia are followed the trend of pay increase with productivity gains. This scenario increases the economic development in Malaysia. With the rapid growing of economic in Malaysia, the cost of living is getting higher. People are expected to obtain a job with high pay and good compensation package. From current society perspective, pay is a measure of justice and fairness. Every employee should be treated fairly because they will compare oneself with another individual. Thus, it is important for us to justify the cash and incentive compensation policy of company D from society perspective.

Compensation is providing employees with appropriate and equitable rewards for their contributions to meeting organizational goals and objectives. Compensation is also a systematic approach to offering monetary value to employees in exchange for work performed. Compensation may achieve some purposes assisting in recruitment, job performance, and job satisfaction. (Compensation: Outline and Definitions, n.d.). There are three types of compensation which include direct financial compensation, indirect financial compensation and nonfinancial compensation.

Compensation is everything the employee values and want and what the employer is able to offer in return for the contributions of the employee (Cascio 2006).

The article pertains mainly to employee compensations and the incentives which govern that compensation. The company due primarily to the prevailing market sentiments has incurred a steep decline in earnings and profit margins. Management therefore, wants to realign incentives to encourage both revenue and profit margin growth within the company. The companies inability to grow organically while maintain a competent work force have put downward pressure on the margin. As such, the company wants to provide incentives by which employees can grow revenue, earn money for themselves, while also helping the company grow organically.

Employee compensation is all forms of pay and rewards which are received by employees for completing their job duties as outlined by their employer. Compensation is classified two ways, direct and indirect compensation. Direct compensation covers wages and salaries, bonuses, commissions and incentives. With indirect compensation, benefits are supplied by employers, and nonfinancial compensation includes recognition, rewarding jobs, and flexible work hours in order to accommodate each person’s own needs. The psychological reward which employees received from their employer is a very important aspect. Employees aspire to have compensation systems that they believe to be fair and while being compensated for their skills. Due to the

Human Resource Management (HRM) has never been as significant as it is today. Companies want to attract, retain and motivate brains to meet objectives. Today Humans are regarded as one of every company’s assets so they need to be efficiently and effectively managed. One of the tools companies use to attract, retain and motivate its people is Compensation Management. In this hub, I shall define compensation and benefits along with their advantages for a company and its workers. My dream job will be Compensation Manager in HR department. Compensation managers plan, direct, and coordinate how and how much an organization pays its employees. Benefits managers do the same for retirement plans, health