COMPENSATION AND INCENTIVE

Compensating human resources refers to the process of providing financial and nonfinancial rewards to
employees in exchange for their services and contributions to an organization. The goal of compensation
is to attract, retain, and motivate employees, as well as to ensure that their work is aligned with the
goals and objectives of the organization.

So pag sinabing compensating ito yung nag po providing penansyal or rewards sa mga employees .
tumutukoy sa mga benepisyo o kabayaran na ibinibigay ng isang organisasyon o kumpanya sa kanilang
mga employees bilang kapalit sa kanilang serbisyo o trabaho. Sabi din dito na Compensation can be in
the form of financial rewards (such as salaries, bonuses, or profit-sharing) or nonfinancial rewards (such
as recognition, benefits, or career development opportunities)

What are the types of incentives at work

 Compensation Incentives- these may include items such as raises bonuses, profit sharing signing
bonus and stock options
 Recognition Incentives - these include actions such as thanking the employees, praising
employees, presenting employees with certificates of achievement or recognition, announcing
and acknowledging an accomplishment of an employee during company meetings
 Rewards Incentives -these include items such as gifts, monetary rewards, service awards, and
items like gift certificates
 Appreciation Incentives - these include such happenings like company parties, company paid
family activities, ice cream socials for employees' children, birthday celebrations and paid group
lunches and company sponsored sports events

For incentives giving to be successful, employers need to:

 Make sure that all employees understand the objectives the employer has in offering incentives.

When employees understand the objectives behind incentives, they can align their efforts and
actions accordingly. They will have a clear understanding of what the organization expects from
them and how their performance ties into the overall goals.

And Kapag nauunawaan ng mga empleyee kung pano yung kanilang individual performance nag
kakaroon ng impacts sa organization's success, and they are more likely to be motivated to perform
at their best.

 Communicate the specific criteria to all employees. Provide example so the employees
understand what an employer is seeking.

Para maunawaan ng mga employees kung ano ang hinahanap ng employer

 State the timeline and allow a certain amount of time for employees to accomplish the actions
that you would like to see as an employer.

Bilang employer, mahalagang magpahayag tayo ng takdang panahon at maglaan ng sapat na oras sa
mga empleyado upang makamit ang mga aksyon na nais nating makita.
Halimbawa, kung nais nating magkaroon ng isang pagpapataas ng benta ng 20% sa loob ng isang
taon, mahalagang malaman ng mga empleyado na ito ang ating layunin. Maaaring ipahayag na
binibigyan natin sila ng isang taon upang maabot ang target na ito.

 Reward every employee who achieves the expectations.

motivated to perform at their best.

 Tell the employees exactly why their contributions made them eligible to receive the incentive