1. What is compensation?

The monetary and non-monetary payment for work or services that is given to an individual
employee for his or her work or services rendered.

2. What are the factors that affect compensation?

1. The nature of the job
2. Economic conditions
3. Organization’s ability to pay
4. Government regulation
5. Union pressure
6. Nature of the employee

3. What are the different types of compensation adjustments?

1. Cost of living allowance
2. Promotional Increase
3. Collective bargaining agreement
4. Merit Increase
5. Level adjustment

4. Who are responsible for the determination of right compensation?

Employers set a wage range to determine how much they will pay their employees. A salary
range is made up of a minimum pay rate, a middle-range pay growth possibility, and a maximum
pay rate.

5. What is a fringe benefit?

Fringe benefits are additional compensation paid on top of salaries with the goal for piquing
workers' attention and making the job more appealing and pleasant. They are, in fact, indirect
benefits.
6. What are the reasons for granting benefits
1 Boost employee morale
2 Provision for the needs of the employees
3 Maintain employee’s standard of living
4 Inflation and other economic causes

7. Why is it important to know the condition of employment?

The rules, requirements, and policies that an employer and employee agree to follow during the
employee's time with the company are known as conditions of employment. A condition of
employment is something that both the employee and the employer agree upon at the start of
their working relationship.