Unit 4 :

Compensation Management CM

Introduction

The total of all rewards provided to employees in return for their services is
Compensation/remuneration.

Compensation management is the process of managing, analyzing, and determining the salary, incentives, and benefits
each employee receives. Compensation management is a crucial part of any talent management and retention strategy.

Compensation managers aim to attract, retain, and engage employees by offering broad and competitive compensation plans within the company budget.

Objectives of CM/ W & S

 Attract/ Acquire qualified personnel

 Retain present employees
 Motivate/ Ensure equity
 Reward desired behavior
 Ctrl costs
 Comply with legal regulations
 Facilitate understanding
 Further administrative efficiency

Theories of remuneration

Reinforcement and expectancy theory

Equity th

Agency th
Job Evaluation : Methods

 4 fundamental JE methods :
1.