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Compensation and Benefit System
Compensation benefits can be money, anything that can be used like goods, dress or food or possibly services that can be used by the person receiving it. This are things given by the company or an organization as a way of compensating people for their job, as a way of
Osborn. A good motivator can be considered as a powerful person because he or she can make people do things accordingly without coercing them. organizations sets . Performances are being measured and evaluated by the company as to whether expectations are being met or not by the employees. there are rewards and recognitions given to them as a way of showing how much the company appreciated their performances. employees in return are expected to perform while at the same time exceed the expectation set towards in them in exchange for the rewards they are supposed to receive.rewarding them while most just to motivate their employees to do their best in their job. Provided that they are given everything that they need to succeed like tools and trainings. 2010). Not everyone can motivate individuals to work because there are companies out there that give out too much benefits and bonuses yet still find it hard to keep their employees because of bad management and leadership. &Uhl-Bein. This only shows that success can be attributed to the company’s motivating tactics. Hunt. It only means that motivation comes from a good relationship between a leader and his or her subordinates. To make it clear as to when a bonus is supposed to be given. Motivation is the process that companies are using to keep their employees performing on top and being on top all the time (Schermerhorn. Once an employee performs well. It means it is the ultimate tool of the company to keep their employees reaching their goal and set metrics.
The performance will then be evaluated to determine the amount of incentive to be given to the employee. Most organizations do run some surveys to gather information as to what bonuses employees would like to have in order to keep them more motivated. Performance bonuses can be as good as the actual compensation that employees are receiving hence it is only fair to have everyone know about it.expected target realistic enough for the employee to reach. They don’t just go on designing and giving out things and rewards that employees might not even find attractive or useful because it will defeat the purpose of motivating them. The company makes sure they will have the capability to provide the necessary compensation package and bonus they are offering hence they conduct survey to know what to prepare. The company then provides rules and policies as to how employees can get their performance bonuses. This is the same way they prepare compensation packages based on the pay scale. comparing pay scales and . and then there will be corresponding charge for it. what are the requirements and what are at stake. Organizations always have their own system when it comes or providing benefits and compensation to their employees and it comes with a fair and equal philosophy to ensure everyone is aware of how it is given and has the chance to claim it for them. For most employees or job hunters. The goal serves as the baseline and when the employee performs above the expected goal.
For example. The pay or salary cap given to applicants on the same area of business form different companies is called pay grade and it depends on the capability of the company to pay (Henderson. and then you might find it hard to leave them despite having minimal salary package. companies on the same area offers the same packages to their applicants and just varies on the bonuses and incentives. Sometimes though. Companies that offers the same job description and asks the same thing from applicants needs to offer not just basic salaries but also to offer an amount that is considered common among all same businesses. the other way to keep applicants around is to provide them with enticing bonuses offers and incentives. This is their way of keeping their employees hence strategies depends on the equity program of the company and the things they can offer. Pay grade is also present within the company because there are . you get hired to a company that offers more bonuses. 2006). If there are companies that offer higher basic pay like with call center companies.job rates are essential when choosing a job because it determines whether they are with the right company or not. Employee satisfaction can then dictate whether they will stay or not. Companies are now designing the pay structure that they offer along with the compensation and bonuses to ensure that will be attractive to the applicants while at the same time ensuring that they can meet the target compensation packages meaning they can really pay it.
As we mentioned earlier. With the levels of jobs. benefits are not just cash and they can be anything else that employees might fin of use. The pay grade is always a step higher than the one.companies who pays higher to applicants that has experience than to those that are new level entry applicant. The leveling of these employees also determines their job description and pay grade. determining compensation packages is easier now for the organization to design as well as providing incentives and salary increases. One is a based on the type of labor like manual workers. Most organizations uses the tenure system and merit system when it comes to determining pay grade hence pays for the same position might still be different for two people because of their performance and tenure ship in the company. This is called tenure payment. Organizations assign level and position codes to ensure that there are points in between each level and that the increase from one level position to another is really valuable allowing or making employees aim for the higher position if they want one with better pay. There are 4 levels of pay and compensation structure based on the employee’s status. There are benefits . and then comes those that get monthly pay based on their agreed contract. there are those that are in the managerial position and there are the executives or high ranking ones. It can always be based on the position and level.
Benefits should be given and employees should be able to get it without causing them their life. Companies’ uses benefits to show to employees that the company is earning because of them hence showing service components that are good and lastly it shows how the program or campaign is really doing and there are a lot of benefits that can be used to keep employees at their best (Henderson.that can really motivate employees to perform better and of course this is the main purpose as to why organizations are giving out performance bonuses. long term incentives like options or requests that are granted and other benefits that were chosen by the employees themselves. short term incentives like goodies. Benefits and bonuses don’t need to be related to the program or service or job the employees are doing but it can be something that can uplift spirits like food. to make them stay and be loyal. Remember that the main . 2006). Among the benefits that people mostly get wants to get are cash. It is also a way keeping employees within the company. Benefits are not just anything because it needs to be something competitive and something that employees would really want to have. Benefits are supposed to be attainable and not something that is in their only to be given to the best employees that are fewer than our fingers. Benefits are companies and management’s ways of showing they want their employees to be at their best at all times. leaves that are paid. without a need for a miracle or without involving anything illegal just to have it.
to reduce rate of absences without due reason and to avoid attrition or employees leaving the company for some reasons (Henderson. There are companies who also involve the government in order to provide better benefits to their employees.reason why bonuses and incentives are being given away and being designed is so that employees can keep their focus on their job. Companies might not be able to shoulder such enormous amount of charges hence sometimes. medical and dental coverage’s not just for the employee but with the employee’s families too along with insurances to ensure they are taken care of in case something happens to them. . Medical benefits are also given to employees’ children to ensure there is something they can use in case their kids would need it and these are mostly non-taxable. they offer it to employees with an agreement that part of it will be taken care of the employee through salary deduction. companies are mandated to pay it to their employees in cash like leave credit reimbursements and unused sick leaves. The amount to be deducted is minimal amount though and that the employee should consent it. the company and the employee are involved in a transaction to ensure that everyone is contented with what they have. the government. In this case. 2006). companies are also expected to give benefits that are common to all employees like medical and dental benefits. Aside from bonuses. Government rules and policies have asked companies to make sure that these benefits are given to them while if unused.
These are contributions made through the company and then later on.If you will think about it. This ensures productivity at the same .000 employees). employees find it easier to do their job. Employees are also expected to give contributions to different organizations that they might get help with in later time like the Social Security (FICA) and Medicare systems for their medical needs in the future. even companies find it hard to settle charges and bills. When bonuses are being given away. the money used to provide these benefits are actually just rolling around from the three parties involved. this money can be used or can be loaned in case of emergencies. Employees’ works hard if they know there is something good coming out of their hard work like incentives and bonuses once they hit the goal or perform above expectation. All employees are given brief orientation about these programs as well as their involvement and payments that needs to be settled. to hit their goals and to pass their scorecards. the performance of the employee allows the company to be on top of the competition hence they are earning and able to pay their employees. There are always the pros and cons of such benefit plans and these should be discussed with employees because sometimes. The tax paid by the employee is sued by the government to help the company pay the said benefits while at the same time. Imagine paying the Social Security (FICA) and Medicare systems for all employees at the same time (say a company has 1.
companies should continue to work hard to keep their employees working with them through providing incentives and bonuses. Leveling can also help employees perform on their best because they will definitely want to be on top of the level and when there are measurements provided like rankings. Despite economic challenges. everyone would want to be on top. Without spending much. employees can complain or file disputes especially when it comes to basic pays. In cases where in employees feel threatened that their job is not good enough or the company is not compensating them enough. Benefits are not just through money so companies can provide better incentives without spending much if the company is not earning at the moment. there are companies who offer early off to their employees to avoid paying them since they are not earning for the meantime (voluntary early go home) or they can ask everyone to bring food at the office and have a lunch party to spend more time with each other. For example. . the organization can show their employees that they are glad they are with them at such time and that they are appreciated. Performance bonus includes salary increases while at the same time giving our quarterly bonuses those employees looks forward too.time keeping the company above with the competition especially if they can everyone attracted to the bonuses at stake.
Provide them things that they will need the most like medical coverage.). &Uhl-Bein. Make them work because they feel it as their responsibility to the company knowing that the company is doing everything for them (Henderson. Make your employees feel like they are working because they love it and not just because they need it. 2005). Companies can make a better working environment through its salary plans and incentives. Osborn. Give them things that will keep them coming to work like short term incentives and make them loyal to the company with your long term incentives. Compensation management in a knowledgebased world. Organizational Behavior. R. 2006).Employees that are reliable and performing are few of the hardest things to come by today according to some organizations hence it is important to nurture them then keep them with you once you found them (Lee. Schermerhorn. 2010 . Hunt. References: Henderson. (2006). (10th ed.
F. http://www.com/herzberg. (1959).Herzberg.htm . The Emotional Side of Intellectual Capital.http://www. Lee.com/articles/IntellectualCapital/Intellec tual-Capital-Articles-1. D.humannatureatwork.businessballs. Motivation to Work.htm. (2005).
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