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Benefits And Compensations

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Running head: BENEFITS AND COMPENSATIONS Benefits and Compensations Student’s Name Institution Year 1 BENEFITS AND COMPENSATIONS 2 Benefits and Compensations Employee compensation plays a very critical role in improving the performance of employees. Therefore, it is important for human resource managers to consider various compensable factors when designing wage and salary brackets for various categories of employees (Gagné, 2014). Some of the common compensable factors which human resources managers need to consider when computing employees' wages and salaries include the experience, their education, their working conditions, the complexity of their duties and also their mental and physical demands. Therefore the compensation and benefits which an employee is entitled to are normally determined by numerous factors which human resource managers and also employers need to consider while hiring employees. By taking into account these compensable factors, employers and human resource managers can adequately compensate employees and improve their performance at their workplace. Aside from this, employee compensation also helps to improve employee motivation, boost employee loyalty and also increase job satisfaction (Bishow & Monaco, 2016). Some of the commonly used compensation tools include commissions, bonuses, overtime pay and also insurances and also allowances. How Organizations Determine the Relative Importance of Compensable Factors When computing compensation pl ...
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