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Compensation Management process is about the study of basics concepts, subjects and methods that are associated with designing, managing and studying the compensation and benefits for increasing administrative performance and good staffing. This is the compensation management definition by authors.
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To make employees extremely motivated to work for the organization, they are rewarded with the right packages which are the ultimate compensation management objectves. This is the key goal of compensation systems of key aim of the compensation system. While fixing compensation for the employees, it is essential to look at the matter both from management and employee’s perspective. The importance of compensation management in hrm enhances manifold when an organization employs highly talented individuals as professionals.
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Here are the critical components of a compensation strategy or strategic perspectives of compensation or guiding principles of compensation strategy:
Salary ladders, evaluation and analysis, duties and responsibilties are the components of compensation management.
There are essentially two types of compensation that includes-
There are numbers of effective compensation system advantages are gone over listed below:
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