When organizations invest in its employee’s compensation it ensures a reasonably fair return (Kanungo, Mendonca, 1988). Compensation will be viewed as fair by the employee if it is designed with a job analysis, job description, and pay structure. Pay is one component of a compensation plan. A competitive salary plays a part in how satisfied employees are within the organization. When employees are satisfied with the pay received for performance the employee will not look for another job with the competition. Employers should want to offer employees fair compensation. That is way it is important to ensure employees are paid fairly for the duties performed. Employees will work hard at accomplishing established goals of the organization when he or she knows that they are being compensated fairly compared to the benefit and compensation packages that are offered by competitors. Unfair compensation is the top reason high performing employees decide to leave a company and work for the
When organizations invest in its employee’s compensation it ensures a reasonably fair return (Kanungo, Mendonca, 1988). Compensation will be viewed as fair by the employee if it is designed with a job analysis, job description, and pay structure. Pay is one component of a compensation plan. A competitive salary plays a part in how satisfied employees are within the organization. When employees are satisfied with the pay received for performance the employee will not look for another job with the competition. Employers should want to offer employees fair compensation. That is way it is important to ensure employees are paid fairly for the duties performed. Employees will work hard at accomplishing established goals of the organization when he or she knows that they are being compensated fairly compared to the benefit and compensation packages that are offered by competitors. Unfair compensation is the top reason high performing employees decide to leave a company and work for the