Compensation and Benefits - 2497 Words

Executive Summary: The purpose of this paper is to highlight the best practices followed by HRM and to acknowledge the importance of compensation and benefit strategies used in organizations all around the world. Compensation and Benefits are used by different organisations globally to attract, motivate and retain their employees. This paper contains a case studies, summary and analysis of academic journals and books to understand the latest trends in compensation and benefits field. The three primary components which are used in designing a strategic compensation plan are listed. During the course of the paper, it discusses how the compensation and benefit strategies can be tailor-made for the different generations joining the workforce,†¦show more content†¦Employees also look forward for a good benefits package; in fact employees have grown accustomed to generous benefits programs, and join an organization expecting them. Employee benefits exist in organizations all around the world and the levels and range of these benefits vary between countries. Some of the benefits companies offer can be like company accommodation, company provided vehicles, health insurance, retirement benefits, easy loans, travel benefits, workplace flexibility, work-time flexibility and so on. (SHRM, 2011) Compensation and Benefit strategies used in organisations: As per Kevin O’Connell, there are three primary components in a strategic compensation plan. First, building a solid foundation for the plan to understand the business strategy is required. Where the company is now and where is it heading to in the future, what are its short term and long term goals. This will provide the necessary information needed to construct a solid framework for the design of a compensation plan. Second, understanding organizational capabilities and how the role of compensation plays a key role to achieve organizational goals is critical. This will provide an excellent understanding of what positions are the most critical to a companys future success and the various compensation options available to motivate employees to achieve this success. Third, aligning compensation with human capital management initiatives will help develop a plan that allows theShow MoreRelatedCompensation And Benefits Of Compensation Essay1275 Words   |  6 PagesCompensation Benefit The compensation and benefits department is usually responsible for the  transparency in the compensation practices  in the organization and keeping the internal fairness of the total cash. The compensation and benefits has to supervise the development of new compensation components and keeping the general rules for the design of the compensation component. The compensation and benefits department is responsible for the personnel expenses budget of the organizationRead MoreCompensation And Benefits Of Compensation1791 Words   |  8 Pagestalk about compensation among organizations and employees in today’s work environment. Questions such as, what is the cost to the organization and what will be the organizations return on their compensation investment, are common among questions being asked among organizations. Because of all this, there has been a variety of different pay compensations put into place in the work force. The following paragraphs will talk about one company, Bumpbie, and how a strategic compensation plan, integratedRead MoreBenefits And Benefits Of Compensation Essay886 Words   |  4 PagesCompensation is output and the benefit that employee receives in the form of pay, wages and also same rewards like monetary exchange for the employee’s to increases the performance Holt, 1993). 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Multiple Choice 1) Which of the following is least likely to be used as a skill-based certification method? a. tests b. college degree c. peer review d. on-the-job demonstration 2) An inappropriate way to assessRead MoreCompensation and Benefits2496 Words   |  10 PagesCompensation and Benefits: Methods, Strategies and Performances LaTonya Hopes This paper is submitted in partial fulfillment of the requirements for Human Resource Administration BUS 5273-50 Texas Woman s University School of Management Dr. Derek Crews February 8, 2013 Table of Contents Abstract †¦Ã¢â‚¬ ¦....................................................................................................................... 3 Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4 LiteratureRead MoreBenefits And Benefits Of Employee Compensation1395 Words   |  6 PagesEmployee compensation is all forms of pay and rewards which are received by employees for completing their job duties as outlined by their employer. Compensation is classified two ways, direct and indirect compensation. Direct compensation covers wages and salaries, bonuses, commissions and incentives. With indirect compensation, benefits are supplied by employers, and nonfinancial compensation includes recognition, rewarding jobs, and flexible work hours in order to accommodate each person’s ownRead MoreBenefits And Benefits Of Employee Compensation1054 Words   |  5 Pagesfantastic benefits. (Benefits.) One of the many topics that we discussed when we met with Joe Daggar, a senior manager at Paychex, was how the company meets the needs of employees in relation to employee compensation. Paychex has a set system where the company performs anonymous surveys to determine which kind of compensation packages employees are looking for. By using these surveys they constantly change and adapt to the needs of their employees. Investment opportunities was another feature