Compensation & Benefits

-Group 9
Khushboo Bhojwani (65)
Ajay Jagtap (75)
Parag Lad (85)
Utkarsh Pandey (95)
Yash (105
Mohit Singh (115)
Compensation

 One of the most important aspects in HRM.

 refers to all forms of pay to employees arising from their work.
 offered in monetary value.
 Forms : wages, salary or tips.
 different types of compensation packages for different employees depending on their
nature of work.
 Commonly given on monthly basis; even weekly or fortnightly or hourly payments are
given.
 Types of Compensation

 Basic compensation
 companies offer basic salaries as compensation to their employees.
Same grade : same pay ; higher qualification, advanced skills and experience : basis for differentiation
in pay.
 Performance related compensation
 pay can be adjusted to reflect some performance measure.
 Example :Annual Bonus.
 Piece-rate compensation plan
 no base salary.
 Paid for what they have produced.
 known as commission based compensation
 more revenue you generate, the more money you earn.
Benefits of Good Compensation.

 Specifically designed to attract as well as to retain talent within the organization.

 It also focuses on utilizing employee energy to gain competitive strategy.
 Attractive compensation helps to improve job satisfaction among the employees.
 Leads to low absenteeism.
 Lower employee turnover : satisfied workers are willing to stay in their respective
organizations.
Benefits

 Employees expect to earn extra apart from cash alone.

 Known as benefits and some people prefer to call them fringe benefits.
 Non-monetary form of compensation.
 offered on top of the cash pay to the employees.
 Objective : to improve the welfare of the employees as well as to motivate them.
 Types of Benefits

 Some benefits are required by law and these include

sick and holiday pay as well as unemployment
compensation.

 Employees can also choose their desired benefit

packages from the following: vacation, health
insurance, company housing, subsidized meals as well
as educational funding for children.

 Benefits depend on one’s level within the company.

Importance of Benefits.

 Workers receive benefits regardless of their performances.

 Benefits are not performance based but membership based.
 They can lead to low satisfaction and lead to absenteeism and ultimately turnover if they
are insufficient.
 Benefit plans are specifically designed to fulfill the needs of the employees and the overall
objectives of the organization.
 Some of the goals of offering employee benefits include the following: improve employee
satisfaction, attract new employees as well as to satisfy the employees already working
within the company.
Importance of Good Compensation &
Benefits.

 Ensure hard working employees are rewarded fairly; in the most cost effective way for the
company.
 Helps in motivating employees to sustain their performance.
 Attract new people to the company.
 Compensations & Benefits are one of the main reasons why one applies to a specific job.
 More attractive C&B, more interest by the new employees in the positions