Compensation is the remuneration received by an employee in return for his/her contribution to the organization.

It is an organized practice that involves balancing the work-employee relation by providing monetary and nonmonetary benefits to employees.

To attract and retain competent and productive staff from the appropriate national, regional or local labor market. To identify different levels of responsibility and accountability and to establish salaries accordingly. To base salary adjustments on individual contributions and performance. To pay salaries that are competitive, on an overall basis, with salaries in the relevant labor market(s) and that are consistent with the University's budgetary guidelines and within allocated financial resources

Job analysis

Pay structure
Salary survey

DIRECT COMPENSATION

Leaves

Paid Festival/National Holidays Privilege Leave Sick Leave Casual Leave Maternity Leave Paternity Leave

Medical Insurance Accidental Death & Personal Accident Insurance Life Insurance ESPP (Employee Stock Purchase Plan) Employee Assistance Program Fitness Benefits Free Transportation Subsidized Home Internet Broadband Free Lunch

Competencies are the knowledge-skills and the attitude needed by any individual employee to carry out their job effectively. These can be incorporated into a pay system to reward individuals who positively contribute to the overall values and objectives of an organization. This is competency based pay: rewarding the way people work, not just recognizing what they can deliver.

Several factors need to be fully integrated within an organisation before competency based pay can be introduced:

an employee appraisal process must already exist managers must already have been trained to assess competencies staff should be made aware of the competencies required and how to demonstrate them when it comes to their appraisals all employees must give their full commitment the system must be fair so that all employees are included