Propositions
The prime objective of the compensation management program is to motivate the employees to perform well in their tasks and to maintain a long term employee engagement.
• Attract employees: Compensation should be such that it should attract competent employees to apply and join the company. It is a good way of acquiring a good talent pool
• Retain the best talent: Talent management is another major goal. Best talents should be compensated in a way that they feel satisfied staying in the organization and continue the good work
• Ensure equity: The compensation offered to an employee should equal the worth of the job he/she performs. Similar jobs should be paid similarly and at the same time more qualified employees with better performances should be compensated accordingly.
• Reward new …show more content…
It is classified as below:
· Direct financial compensation includes pay received in the form of wages, salaries, bonuses, incentives and commissions
· Indirect financial compensation including all financial rewards that are not included in direct compensation and that which form part of the contract between the employer and employee such as insurance plans, social security benefits, paid absences etc.
· Non-financial compensation refers to duties and responsibilities, authority, autonomy, career development and advancement opportunities, opportunities for recognition, as well as work environment and conditions such as practices and policies, comfortable and safe work environment, flexible working hours etc. It is generally believed that employees give a higher weightage to financial compensation while making their career decisions. However, a survey conducted by McKinsey says that the employees who are relatively satisfied with their financial compensation gives high priority to the non-financial compensation. It decides on the long term employee
The prime objective of the compensation management program is to motivate the employees to perform well in their tasks and to maintain a long term employee engagement.
• Attract employees: Compensation should be such that it should attract competent employees to apply and join the company. It is a good way of acquiring a good talent pool
• Retain the best talent: Talent management is another major goal. Best talents should be compensated in a way that they feel satisfied staying in the organization and continue the good work
• Ensure equity: The compensation offered to an employee should equal the worth of the job he/she performs. Similar jobs should be paid similarly and at the same time more qualified employees with better performances should be compensated accordingly.
• Reward new …show more content…
It is classified as below:
· Direct financial compensation includes pay received in the form of wages, salaries, bonuses, incentives and commissions
· Indirect financial compensation including all financial rewards that are not included in direct compensation and that which form part of the contract between the employer and employee such as insurance plans, social security benefits, paid absences etc.
· Non-financial compensation refers to duties and responsibilities, authority, autonomy, career development and advancement opportunities, opportunities for recognition, as well as work environment and conditions such as practices and policies, comfortable and safe work environment, flexible working hours etc. It is generally believed that employees give a higher weightage to financial compensation while making their career decisions. However, a survey conducted by McKinsey says that the employees who are relatively satisfied with their financial compensation gives high priority to the non-financial compensation. It decides on the long term employee