Just like Jack Welch put it, if you select
the right candidates and provide them the opportunity to explore their skills
and support them with rewards and compensations, you would almost not need to
manage such a team, and we can’t help but agree with him. Most of us have heard
of ‘compensation management’ and it
refers to the reward that a company decides for its employees for putting in
their hard work and time, not to mention that it also works like a motivation
to the employees to keep up the good job. Thus, it forms a very integral part
of an organization and the proper management of compensation is important to
maintain a good work-employee relation by providing the monetary as well as
non-monetary perks.
The management of compensation or reward
for the employees is essential for the existence and future growth of the
company, and this can be affected by several factors including the economic
scenario of organization, available resources and the business objectives. In
order to be successful, companies need to pay due attention to this aspect of
business and strikes a proper balance to ensure that the employees are happy
with the compensation they receive and it works as a motivation factor for
them.
Determining the right compensation package
is the job of the human resource managers and besides deciding the real pay
they should also provide incentives or rewards for those who perform
outstandingly. Compensation and incentives should be viewed upon as an
investment that you make to motivate and get great results from your
employees. Furthermore, when you have a
great pay and incentive scheme, this also works like an effective tool to
attract the top performers from other companies to work in your organization. Another
amazing benefit comes in the form of employee retention as rewards for good
work will keep them motivated and loyal to your organization.
In the past few years, the human resource
market has evolved considerably and rising competitiveness has turned
compensation planning really tricky for companies. With the increasing demands
of the employees and the multinational companies offering fat pay packages to
individuals, managing compensation has become more complicated than it used to
be previously. Thus the human resource managers and experts need to come
together and create a suitable compensation planning for the staff ranging from
the front line workers to the highly qualified employees.
To create the best type of compensation management plan, companies
should take into account the increasing needs of the employees while at the
same time considering the profitability and competitiveness of the company. When
you want your organization to function smoothly and have a bunch of happy and
satisfied employees wanting to give their best to each project, we recommend
that you start thinking about managing the compensation from today!
