Total Compensation Is The Monetary And Nonmonetary Rewards

One of the important aspects of business management is having a proper compensation system. Compensation ensures that the staff of the company obtains the results of their efforts. Compensation is a cost to the enterprise and, therefore, a proper remuneration model must demonstrate its ability to produce returns. Also, since compensation is what the employees get in exchange for their services, the type used must be one that will motivate the employees (Belcourt & McBey, 2015). Henderson printing company is a mid-level company. Therefore, it requires a very critical remuneration system that will help it to survive. This memo explores the compensation models that Henderson printing operates as well as suggests the necessary changes.

Compensation strategies within a company are very important. Companies need to invest in offering compensation benefits to their employees because they enhance an employee’s wiliness to stay long term with the company. They also provide a positive foundation between the employee and employer. If an employee is happy and content with the company they work for then this will benefit the company and the employee. The employee will be motivated to do a good job for the company and in the long run the extra money and work that the employer puts in for the added benefits will pay off. In this report you will see how Paid Time off (PTO) , bonuses and merit pay increases will benefit not only the employee but the business.

Compensation is output and the benefit that employee receives in the form of pay, wages and also same rewards like monetary exchange for the employee’s to increases the performance Holt, 1993). Compensation is the segment of transition between the employee and the owner that the outcomes employee contract. As the prospective of employee pay is the necessary of life. The payment receives from work done on the behalf of people getting the employment. From the employee prospective one of the most important part of cash flow. Compensation is mostly equal to half of cash flow of the companies. But in the service sector it is more than half. It is the major to attract the employee and motivate employee to increases the performance (Ivanceikh and Glueck, 1989).

Pay-for-performance pay is an increasingly popular compensation strategy in today’s business world. According to research conducted by consulting firm Aon Hewitt, 90% of the 1,100 employers polled use some form of variable, performance-based pay in their compensation strategy (Kelleher, 2013). There is also considerable evidence that employees, themselves, believe that their compensation should be tied in some way to their performance (Milkovich, Newman, & Gerhart, 2016, p. 332). With such a significant number of organizations utilizing this type of pay, as well as the overwhelming support of employees, it would seem that pay-for-performance is an effective strategy. However, there is argument over whether pay-for-performance is truly an effective compensation strategy. Despite its prevalence and support, both managerial and employee alike, failures such as Hewlett-Packard’s in the 1990’s (Beer & Cannon, 2004) demonstrate that the extent of pay-for-performance’s effectiveness is questionable. This report sets out to examine the evidence in support of and in opposition against the efficacy of pay-for-performance to determine if this compensation strategy can truly motivate employee behavior and benefit an organization’s business strategy.

In modern business world, any organization can strategically use; pay, compensation, benefits and other rewards as effective performance management instruments to increase operational efficiency and enhance performance. It is very important for the organisation to attract, motivate and retain the best people who will be a key influence on its future success. Furthermore, in recent times, most members of the community believe that skilled people are an essential part of sustaining an organization's long-term competitive advantage. So, successful pay, rewards, compensation and benefits strategies are the main components that can ensure people are paid equitably, recognise and reward excellent performance, and aid the

Internal Consistency – Internal consistent compensation systems clearly define the relative value of each job among all jobs within a company. This ordered set of jobs represents the job structure or hierarchy. Companies rely on a simple, yet fundamental, principle for building internally

Compensation practices in this study have been used to refer to the remedies that an organization 's management chooses to implement in order achieve it set a goal and the same time satisfying the needs and wants of both consumers and employees. In this examination, WorldatWork has been considered for careful and extensive research to give insight into the issues that are directly/indirectly involved in compensation practices.

Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation which includes a direct cash payment, indirect payments in the form of employee benefits and incentives to motivate employees to strive for higher levels of productivity is a critical component of the employment relationship. It is an integral part of the managing of any organization. Every organization must offer good wages and fringe benefits to attract and retain talented employees with the organization. If at any time, the wages offered by a firm are not competitive as compared to other firms, the efficient workers may leave the firm. Therefore, workers must be remunerated adequately for their services.

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

Organizations are creating and adopting innovative benefits in order to improve their overall compensation strategies. Compensation strategy defines how an organization plans to reward its employees for their time and efforts. An effective compensation strategy enhances (1) talent management, (2) supports an organization’s business objectives, and (3) provides organizations with a return on their investment. Therefore, in order for innovative benefits to enhance the competitiveness of an organization’s overall compensation strategy, the benefits must align with these three goals.

For my current organization, our compensation packages are relatively better than the average compensation within our region when compared with our marketers within my under (salary.com) and (Scdew.gov). While the compensation ranks higher than average, there are a few factors that make up the methods of setting bonuses, compensation(s), and merit(s). We discuss bonuses, annual merits, and compensation on the effects of the organization annual operating costs. The effects that an organization feels as it offers increases and finally the alternatives that can be implemented as an improvement.

* Human resource want to increase the performance, to retain key employees, bring new skilled talents to the company and they want to keep costs under a strict control. * Finding, motivating, developing and keeping employees is a key component of business success * The compensation components cannot be managed discretely, they have to be a part of the overall strategy - the company has to define the competitive compensation strategy.Compensation Strategy * Compensation systems in organizations must be linked to organizational objectives and strategies. But compensation also requires balancing interests and costs of the employer with the expectations of employees. * A compensation program

In today’s ever increasing competitive business environment, Human Resource practices with business outcomes in mind is a necessary first step in aligning business goals with employee motives, a well-rounded compensation plan precedes attainment of these business goals(Martocchio 3). As can be seen by this statement, compensation is a major concern for all players in the business world today. As a matter of fact, if a company fails to properly manage their compensation package they will find themselves being left behind by the competition. In particular, what exactly does being left behind in compensation and benefits mean? It stands that other companies will have an advantage in attracting high performers who can create an impact for

In this research article review, as the title mentions, Barnes, Reb and Ang researched the effects of dynamic performance components to the compensation paid to employees. There are many considerations for the performance appraisal of a worker. In this research he analyzes the pay for performance approach, which has both improving and worsening effects on employees. As our authors stated, “There are negative consequences for both under compensation and overcompensation: Paying too little can result, for example, in increased turnover and reduced motivation, whereas paying too much can result, among others, in higher cost and poorer financial performance” (Barnes, Reb & Ang, 2012).

With reference to Figure 1 (Lawler 1987), the framework shows that elements in the compensation system, i.e. performance measurement and evaluation, monetary compensation and career concerns links employee performance to their rewards in the form of monetary compensation and promotions. Hence, the framework suggests that rewards