The Development And Implementation Of An Appropriate Compensation System

The term compensation refers to all forms of financial returns and tangible benefits that employees receive in exchange for their time, talents, efforts, performance, and results (Bernardin & Russell, 2013) Presumably, employees are motivated by the compensation they receive in all combinations to include their benefits packages. Naturally, employees want to be able to take care of their family to include having good medical coverage and other related benefits. Equity is said to occur when a person perceives that the ratio of his outcomes to his inputs is equal to other’s outcome/input ratio (Salvendy, 1976). Of course, employees want more money, and companies want more work out of each employee. With the cost of benefits like health insurance continuing to rise, companies have to take the higher cost of benefits into consideration when implementing pay

“Compensation represents both the intrinsic and extrinsic rewards employees receive for performing their jobs.” Martocchio, J.J. (2013) A Human Resource Management Approach. Compensation as most know is the hourly or annually paid. Compensation consist more of just hourly or annually pay. Organizations create monetary compensation process to reward their employees for their job performance. Monetary compensation is the core of

This report examines 3 different compensation systems that our company can develop and enforce within our company for our employees. Compensation is the most important and rewarding factor for employees, so a thorough and thoughtful approach should be taken as we think about changing the way in which this company rewards it's employees for the work they do for us each and every day.

Compensation refers to the payment or award given to an employee for the value of their work during employment. Compensation is awarded in many forms, direct or indirectly are a great example. It can be used as a strategic tool to either motivate and empower employees or be used as a bargaining tool by employees when deciding where they will apply their skills and knowledge.

The intent of this assignment is to develop a user-friendly tool that may be applied in the workplace to document Compensation processes and to guide a practitioner in completing the critical steps of each process. The purpose of this assignment is to assist in describing each component of a compensation management system, to develop a practitioner's guide for several of the key compensation management tasks covered in HR511 Total Rewards.

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:

Compensation is defined as all forms of financial returns and tangible benefits that employees receive as part of an employment relationship. Thus, in order to achieve, create, and maintain an effective compensation program you must explore greater professional expertise, organizational understanding, creativity, and vision (Bernardin & Russell, 2013).

Compensation – wages from an employer to their employee, this would include both fixed and variable compensation that would correspond to work performance.

Compensation is the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required. (Susan M. Heathfield Human Resources Expert)

Describe the difference between fairness and equity when considering how to plan for a compensation system.

The purpose of this paper is to provide an analytical overview of compensation strategies within organizations. First, an analysis of the impact of various compensation methods and benefit programs on employees and organizations will be discussed followed by how salary and benefit administration strategies relate to organizational culture and performance. What are compensation and benefit strategies? Compensation and benefit strategies are ways that organizations can use pay and benefits to recognize and reward employees’ contributions to the organization’s success. (Noe, Hollenbeck, Gerhart, and Wright, 2004) Some examples are wage and salary administration, incentive pay, insurance, vacation leave

This assignment requires that students research compensation strategies and consider general compensation programs for employees. It is essential for the human resources departments to recruit and retain the most competent workers for positions, but it also important to consider the

Incentive compensation is a form of compensation that is based solely on the performance of an employee. Payment is usually contingent upon performance of the company, the employee's department, the employee, or combinations thereof, hence the term “incentive”. What this means is the employee has an incentive to perform at a high level, and be rewarded for the effort. In most cases, incentive compensation plans are designed in such a way as to attract and retain key employees, identify with shareholders, and align interests of employees and the company. For example, in the United States, executives and employees are given incentive bonuses based on multiple performance measures. A typical plan for a executive employee can include: a base salary, annual bonus plan, stock options, and additional compensation such as long term incentive plans, retirement plans and restricted stock. Compensation plans often follow the net income and stock prices of the company.

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 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.