Compensation Managment

Compensation Management is an planned practice that involves balancing the work employee relation by giving monetary and non-monetary welfares to employees. Rewards include payments such as bonuses, profit sharing, overtime pay, credit rewards and sales commission. Compensation can also include non-monetary bonuses such as a company-paid car, company-paid housing and stock preferences. Compensation is an essential part of human resource management which helps in encouraging the employees and improving managerial effectiveness.

Why is compensation management important?

A good compensation is a must for every business organizations and helps by giving proper return to the workers for their assistance to the organization, teaches a positive control on the productivity of employees and It boosts the job evaluation process which in return helps in setting up the more accurate and possible standards. It is designed to fulfil with the various labour acts and hence does not result in disputes between the employees and the management.