Joana Marie A.

Heramis
BSBA – HRDM IV-1

“The Pay is Right: Compensating Employee’s Efforts fair and Square”

Speaker: Mr. Ronald Manalo

Compensating does not only involve salary but also the benefits that are involve. Compensation
is defined as the payment of the employee in return for their contribution to the organization that is
doing their job. It is also a motivating factor for employees and shall improve organizational
effectiveness. Benefits are defined as any form of value other than payment. Therefore, Compensation
Benefits are forms of payment and value, monetary and non-monetary, given to an employee who is
rendering contributions or service to the organization.

The organization determines how benefits are offered through recruitment pirating, industry
benchmarking and expertise. There are 2 types of Compensation Benefits; these are the direct
compensation and indirect compensation.

Direct Compensation is any form of monetary given to an employee for the services rendered.
Examples of these are Salary Bonuses, medical reimbursement and allowances.
Indirect Compensation is any form of non-monetary given to an employee for a certain period of
time. Examples of these are Leave Policy, Holiday Pay, Hospitalization, Insurance, Flexible Timing, leave
travel, housing loan, stock options, trainings and seminar.

Compensation Benefits has positive impacts on the employee. These are financial stability, self-
improvement, healthy lifestyle, and more output.

Therefore, Compensation Benefits is one of the most important aspects in a company. These
motivate people to perform well for an exchange of something monetary or non-monetary. It is a way of
motivating an employee to do his/her job to increase the efficiency and the effectiveness of the
company itself. They rely on their people’s performance because the company operation is on their
hands. Remember that people is the most important resources of the company. Without them, there
are no companies, so it is right that we, as future managers return their efforts through monetary values
which would they appreciate as well as non-monetary values which they could use for their pleasures in
life.