Components of Compensation paid to Employees Essay -- wages salary inc

A rigorous review of honorarium and all its components Compensation is what is paid to an employee, whether in the form of wages, profit or incentives by the employer for a specific amount of time, skill and effort do available by the employee in fulfilling specific furrow requirements (Biesheuval, 1984). Compensation is pregnant in giving medications as it conveys information to an employee about their relative importance to the government activity and provides a scale to identify how much recognition they be receiving for their theatrical role (Harley and Stephenson, 1992). Compensation shows employees how much they are appreciated and worth. The intimately important differentiating subdivision between jobs is the effort involved in performing a job (Biesheuval, 1985). Objectives of pay systems (Harzing and Van Ruysseveld, 1999)Objective How to achieve it.To attract employees Job salaryTo keep qualified employees Bonus or incentive to stay e.g. sharesTo puddle effe ctive performance Payment by resultsTo teach employees new behaviours at work Multi-skill bonusTo compensate for inconvenient working conditions A cleave allowance Monetary and non-monetary compensationCompensation is made up of some parts. Although money (extrinsic compensation) is the most recognised, other factors can be just as rewarding. Employee benefits are one type of non-monetary compensation and are intended to cleanse the quality of work life of an nerves labour force (Sherman and Bohlander, 1992). These benefits make up a significant portion of the wage bill. Although benefits were initially introduced as a bonus to employees, they have since come to be expected in the study (ibid). Employee input is integral in determining the type of non-monetary compensation that is the most desired (ibid). Benefits (Sherman and Bohlander, 1992) Medical aid funds including health and dental plans subsidy funds where the employer also wreaks a percentage. Empl oyee assistance computer programs where counselling and assistance are provided with day-to-day issues such as career planning and emotional trauma. teaching regularity assistance plans where the employer pays a portion towards further study. This often benefits the employer as the employee becomes much multi-skilled and efficient at their job. Child and elder care ... ...e companys overall strategy before determining the compensation structure. The way an organisation phthisiss compensation can drive an organisation in specific directions (Noe et al, 2003). Therefore, prominent thought should go into deciding what type of compensation structure to use in terms of the whole organisations strategy and the chosen method should contribute to furthering the overall objectives of the organisation (Sherman and Bohlander, 1992). E.g., individual incentives will not fit into an organisation that wants to further a team-based approach to work (ibid). Compensation sends a subj ect matter about what an organisation feels is important and the types of activities it encourages (Sherman and Bohlander, 1992). Compensation tailoring is an integral method of maintaining the budget (ibid). For this reason, many companies resort to retrenchments in economic downturns (Venter, 2003). An organisations compensation program determines the type of employees that it will attract as well as every increase or decrease the applicant pool (Sherman and Bohlander, 1992).2295 casts CitedWork Motivation and Compensation By Simon Biesheuvel Published 1984 McGraw-Hill ISBN0074507184