What is compensation management PDF?

Compensation management is the process of establishing and. maintaining an equitable wage and salary structure, an equitable cost structure. It involves job. evaluation, wage and salary survey, profit sharing and control of pay costs.

What is compensation management?

Compensation management is the discipline for determining employees’ appropriate pay and benefits. A critical element in talent management and employee retention, it uses financial and nonmonetary benefits to attract recruits, reduce turnover, spur performance and boost employee engagement.

What are the 5 components of compensation?

Components of employee compensation

  • Salary and wages. In a compensation package, these typically make up the single largest component.
  • Bonuses.
  • Federal/state pay requirements.
  • Long-term incentives.
  • Health insurance.
  • Life and/or disability insurance.
  • Retirement plan.
  • Time off.

What is the importance of compensation management?

Compensation management is vital for employee motivation. Employees who are recognized for the value they bring are more likely to be motivated, loyal and higher performing than those who’re not. There are different ways that management and HR department can communicate appreciation.

What are different types of compensation?

Different types of compensation include:

  • Base Pay.
  • Commissions.
  • Overtime Pay.
  • Bonuses, Profit Sharing, Merit Pay.
  • Stock Options.
  • Travel/Meal/Housing Allowance.
  • Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes…

What are the types of compensation management?

Types of Compensations

  • Direct Compensation. It is naturally made up of salary payments and health benefits.
  • Indirect Compensation. It focuses on the personal encouragements of each individual to work.
  • Wages and Salary.
  • Allowances.
  • Incentives and Performance Based Pay.
  • Fringe Benefits/Perquisites.

What are types of compensation?

The Four Major Types of Direct Compensation: Hourly, Salary, Commission, Bonuses. When asking about compensation, most people want to know about direct compensation, particularly base pay and variable pay. The four major types of direct compensation are hourly wages, salary, commission and bonuses.

What are the best articles on management compensation based on performance?

Managerial compensation based on organization performance, Journal of industrial Relation, 52:3-28. 14. Redling, A. (2005). Effects of merit pay on performance, Journal of Management, 31:12 – 19. 15. Luminita, B. (2001). The assess ment center, a new “fashion” in personnel selection.

What do you mean by compensation management?

In the word of D.S. Beach [12] Compensation Management refers ―the establishment In the words of McNamara [17], compensation and implementation of sound policies and practices of includes issues regarding wage and/ or salary programs employee compensation.

What are some of the best books on compensation management?

Compensation Management Strategies, Journal of personnel Administration, 18; 13-27. 10. Harrison, D.A and Liska, N. (2010). Promoting Regular Exercise in Occupational Fitness Programme, Journal of Personal Psychology, 5 (5); 27-45. 11. Hewitt A. (2005). Man aging performance with incentive pa y, Journal of personnel 12. Nweke, A. ( 2009).

What are the characteristics of compensation?

This compensation generally accomplishment of organizational goals.‖ comprises cash payments, which include wages, bonus, and shared profits. Good compensation plans have a The definition of compensation would be salutary effect on the employees.