Considerations for Compensation and Benefits
Considerations for Compensation and Benefits
Abstract
Compensation is one of the most important considerations perspective employees will make prior to accepting a job offer. For this reason, another performance of Human Resource (HR) professionals is the compensation analysis. The focus of the analyst in this position is to use strategy in formulating compensation and benefits packages that are attractive and conducive to maintaining talented employees (Editorial Board, 2011). As another critical service of HR experts, this document will explore the types of benefits and compensations companies use to meet certain criteria of employees. This work will also provide insight on the ways in which these packages are designed to attract employees at various stages in their professional lives. At the conclusion of this article, we will have demonstrated further value of the Human Resources professional to their respective organizations.
Introduction The long study of human motivation has continuously shown that people will do that which they are rewarded for doing. Based on this concept, compensation has been recognized as the most meaningful professional reward for employees. Companies use compensation and benefits as a means of attracting and maintaining valuable employees. Organizations world-wide have further identified that financial incentives must be paired accordingly with the desired results in order to be the most effective. In recent estimates, a reflected 41% of payroll is comprised of employee benefits (M.U.S.E., n.d.). For this reason, it has become increasingly necessary to implement strategy in developing compensation and benefits packages that meet certain elements, such as being fair, being comparable to the pay of others, and providing satisfaction with the content of the work (M.U.S.E., n.d.).
Direct and Indirect Compensation
In order to fulfill the aforementioned elements, compensation analysts must use a variety of direct and indirect
Abstract
Compensation is one of the most important considerations perspective employees will make prior to accepting a job offer. For this reason, another performance of Human Resource (HR) professionals is the compensation analysis. The focus of the analyst in this position is to use strategy in formulating compensation and benefits packages that are attractive and conducive to maintaining talented employees (Editorial Board, 2011). As another critical service of HR experts, this document will explore the types of benefits and compensations companies use to meet certain criteria of employees. This work will also provide insight on the ways in which these packages are designed to attract employees at various stages in their professional lives. At the conclusion of this article, we will have demonstrated further value of the Human Resources professional to their respective organizations.
Introduction The long study of human motivation has continuously shown that people will do that which they are rewarded for doing. Based on this concept, compensation has been recognized as the most meaningful professional reward for employees. Companies use compensation and benefits as a means of attracting and maintaining valuable employees. Organizations world-wide have further identified that financial incentives must be paired accordingly with the desired results in order to be the most effective. In recent estimates, a reflected 41% of payroll is comprised of employee benefits (M.U.S.E., n.d.). For this reason, it has become increasingly necessary to implement strategy in developing compensation and benefits packages that meet certain elements, such as being fair, being comparable to the pay of others, and providing satisfaction with the content of the work (M.U.S.E., n.d.).
Direct and Indirect Compensation
In order to fulfill the aforementioned elements, compensation analysts must use a variety of direct and indirect
References: Compensation: Development of Salary Administration Plan. (1999). HR Guide to the Internet. Retrieved from http://www.hr-guide.com/data/G420.htm Editorial Board. (2011). Introduction to Human Resource Management 1st Edition. Words of Wisdom, LLC. Forsyth, B. (2012). Live Chat. Managing Human Resources. Colorado Technical University. GAO. (2012). Benefits for Retirement-Age Beneficiaries. United States Government Accountability Office. Retrieved from http://www.gao.gov/assets/590/588223.pdf M.U.S.E. (n.d.). Compensation and Human Theory. Managing Human Resources. Colorado Technical University. Retrieved from https://campus.ctuonline.edu/courses/HRM315/p3/hub2/hub.html Nicholson, J. (n.d.). What Is Included in Direct Compensation? Ehow Money. Retrieved from http://www.ehow.com/facts_5863432_included-direct-compensation_.html