Show Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction. Chapter Highlights
How is compensation used?Compensation is a tool used by management for a variety of purposes to further the existance of the company. Compensation may be adjusted according the the business needs, goals, and available resources.Compensation may be used to:
Compensation may also be used as a reward for exceptional job performance. Examples of such plans include: bonuses, commissions, stock, profit sharing, gain sharing. What are the components of a compensation system?Compensation will be perceived by employees as fair if based on systematic components. Various compensation systems have developed to determine the value of positions. These systems utilize many similar components including job descriptions, salary ranges/structures, and written procedures.The components of a compensation system include
Compensation will be perceived as fair if it is comprised of a system of components developed to maintain internal and external equity What are different types of compensation?Different types of compensation include:
What are regulations affecting compensation?Compensation PlansDevelop a program outline.
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