Compensation free essay sample

Compensation Is based on numerous factors such as; market research on similar Jobs in the marketplace, the availability of employees tit similar skill set, employee contributions and accomplishments. The amount of funds the organization has allotted for compensation and benefits, and how well an organization wants to attract and retain specific employee for the value for which they perceive to add to the employment relationship. Compensation comes in many forms such as; bonuses, overtime pay, sales commission, company vehicle, vacation time, and even company paid housing, etc.All companies with employees must determine a plan on what and how to pay their employees, as well as to when to offer raises, bonuses, and other Incentives. This Is where the compensation philosophy Is developed. This is the actual plan for how employees are to be paid, when payments will rise, and when bonuses are appropriate. Influences on the compensation philosophy are present revenue and anticipated profits in the future, market value of the Jobs for which the company is hiring, and the degree of competitiveness in the types of Jobs a company offers. We will write a custom essay sample on Compensation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Another factor one must take Into consideration Is the way an organization views Its employees and Its responsibility to those employees Into the development of a compensation philosophy. The compensation strategy needs the support, very strong support, of top management as it sets stringent limits to the daily operation of the line management and the usually do not fully agree with all aspects in the organizations compensation and benefits strategy.Components of a compensation strategy are base salary, bonuses, incentives, and benefits. Ones base salary Is plainly in the ownership of the top management of the organization and the HARM Function. The role of the base salary Is to attract and retain talented individuals from the market to work for its organization. Base salary can and is very sensitive and the line management looks to set the base salary as high as possible. Bonuses are a totally different story from the point of ownership.The HARM Function needs to define the basic rules for the bonuses in the organization and the line management should have be given the right to define additional rules in the calculation and the desired behavior of employees for bonuses to be paid. The bonuses are the most Integral component In the motivation of employees. Incentives should be the responsibility of the line management, with HARM Function defining the Asia rules concerning the incentive scheme in the organization and line management should have full freedom to play the incentive game the way they want to play it.Incentives help to meet target quotas and/or dates, with the target dates or quotas changing rapidly. The benefits have the retention role In the compensation management providing their own products and services as benefits to the employees of the organization. Google is renowned for their benefits packages. Google considers its benefits as part of who they are and are designed to take care of the whole employee and keep the employee healthy, whether physically, emotionally, ancillary, and/or socially.