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   COMPENSATION
MANAGEMENT



  

 COMPENSATION MANAGEMENT
O Compensation is the total amount of the
monetary and non-monetary pay provided to
an employee by an employer in return for
work performed as required.
 Compensation is based on:

O market research about the worth of similar jobs in the marketplace,

O employee contributions and accomplishments,
O the availability of employees with like skills in the marketplace,
O the desire of the employer to attract and retain a particular
employee for the value they are perceived to add to the
employment relationship, and
O the profitability of the company or the funds available in a non-
profit or public sector setting, and thus, the ability of an employer
to pay market-rate compensation.
O h
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nion. Employees who
outperform their peers will be rewarded appropriately, feel valued and
happyͶand more likely to stay with your company.
O Ongoing copianc
. ›esign your compensation strategy with objective
data and communicate it to managers to stay within allocated budgets and
to employees to show the clear link between compensation and
performance expectations.
O a g
 opiizaion. Yun "what-if" scenarios and instantly see how
increasing merit pay to your best employees would impact your budget.
O Co aving. Eliminate thousands of dollars from your expense column
each year by making sure you're not overpaying low performers. Also, the
easy-to-use automated system will save compensation managers time and
money.
O  
ho
hhoh y
. Manage your compensation in a secure environment
with streamlined workflows where your data is determined via calculation
and eligibility enginesͶeliminating privacy breaches and human
calculation errors.
O Copon
n of Cop
naion Sy


Compensation systems are designed keeping

in minds the strategic goals and business
objectives. Compensation system is designed
on the basis of certain factors after analyzing
the job work and responsibilities. Components
of a compensation system are as follows:
O Typ
 of Cop
naion
Compensation provided to employees can direct in the form of
monetary benefits and/or indirect in the form of non-monetary
benefits known as perks, time off, etc. Compensation does not
include only salary but it is the sum total of all rewards and
allowances provided to the employees in return for their services. If
the compensation offered is effectively managed, it contributes to
high organizational productivity.
›irect Compensation Know More
Indirect Compensation Know More
 N

 of Cop
naion Manag

n

O A good compensation package is important to motivate the employees to

increase the organizational productivity.
O
O Unless compensation is provided no one will come and work for the
organization. Thus, compensation helps in running an organization
effectively and accomplishing its goals.
O
O Salary is just a part of the compensation system, the employees have
other psychological and self-actualization needs to fulfill. Thus,
compensation serves the purpose.
O
O The most competitive compensation will help the organization to attract
and sustain the best talent. The compensation package should be as per
industry standards.
O