Most companies have different alternatives when it comes to compensation methods. Compensations involve the organization as well as employees and any potential staff. Many of these compensation packages that an organization recommends are require by the law and any extra one are benefits to the employees. Benefits and compensations are not only assisting the employees, it will help out with employee’s family members and personal needs. In addition, a well build benefit package can be the center of attention of future employees and it can be favorable in the business success.
For most parts compensation methods are planned by the company to obtain a positive effect on the development of the business. Some compensations includes “ topics in regard to wage and/or salary programs and structures, for example, salary ranges for job descriptions, merit-based programs, bonus-based programs, commission-based programs, etc.” (McNamara, 2010, para 1) A few of these methods allow a fast modification as markets, services and products change. When compensations are planned must offer well-consider measurable benefits program to be able to assist the organization in achieve their goals.
Frequently companies are evaluating the effect of the compensation methods on the staff performance. This guarantee that the compensation programs assign are having the required outcome and if is not working, changes can be made. Most methods must be flexible enough to modify and develop a business. Additionally, the compensation methods required to be aggressive and competitive to assurance the company attraction and retention on good employees. Monetary compensations have a major impact on the company and the employees. Several factors must be considered when setting the level of an employee's monetary compensation. In reality, money rewards are the high motivation that attracts employees. These compensations must be impartial and wages must reflect the value of the labor...