Compensation and benefits management Essay Example | Topics and Well Written Essays - 1250 words

Compensation and benefits management - Essay ExampleCompensation & Benefits Management An trenchant payment and benefits plan is one of the most crucial human resource procedures. A hearty fitted out(p) compensation and benefits policy assures effective returns for an organization. There is a famous axiom according to which a mortal will always have to offer things to people in return for what they acquire from them, in short, instal and take. Compensation refers to this trend however in monetary bounds. Compensation is the employers reaction towards an employees effort. It determines the financial worth an organization offers to its workforce in return of their services. Since employees argon not motivated to work plainly for the money alone, they command extra. This extra lavatory be termed as the employee benefits. It is also commonly know as the fringe benefits. Employee benefits are non-fiscal compensation suggested in addition to money for the enhancement of employe es well being (Biswas, 2012). Contribution of an effective compensation and benefit system towards organizational effectiveness An effective compensation and benefit program supports to attract, encourage, and maintain talent in an organization. A well planned compensation and benefits philosophical system can benefit an organization in a number of ways (Henderson, 2006). Workplace satisfaction finished effective compensation and benefit management, workers would be content with their occupations and would be motivated to perform better if they are awarded with adequate appraisals and incentives in return of their services. Encouragement Every individual poses different motivational triggers. M some(prenominal) of them are motivated by money and willing to work for companies which offer higher pay. While some experience self-accomplishments as a great motivation for themselves and tend to work in an environment where they find greater opportunities of learning, growth and promot ion. Thus, a compensation policy that targets employees requirements is more(prenominal) likely to encourage them to work in a desired manner. Lower Absenteeism Through an effective compensation and benefits management, employees would not want to miss any day of their work. They will be happy with the way they are paid as well as with other incentives they desire. Minimum Turnover If the compensation and benefit management is effective enough, then the employees least want to shift the organization. Employees Well-being Through offering numerous types of incentives to your employees alleviates them from specific fears. The employees will perform with more confidence (Henderson, 2006). The citys largest employer, Holland Enterprises after facing a massive turnover rate recently, require to have an effective compensation system comprising of few major objectives. It has to empower the organization so that it can attract and maintain talented individuals. The compensation and benefi ts management should encourage employees, nurture a sense of justice and offers a reward for their efforts. The program must help, interact and strengthen the organizations culture, norms, and long term competitive strategy. Moreover, the compensation and benefits management should develop a cost structure which determines the organizations potentiality to pay its employees. Finally, it has to coordinate with state laws and policies (Idemobi and Onyeizugbe et al., 2011). In order to attain Holland Enterprise