Explain how to create employee compensation and benefits. Determine appropriate components of employee compensation and benefits. Use organizational and market data to conduct human capital management functions.
Creation of Employee Compensation and Benefits
Compensation is an important motivating factor to push employees and achieve desired goals. Organizations determine employee compensation and benefits according to the needs of employees and available resources of organization. Compensation policy and benefits reflects the strategic business objectives of the organization (Thomason, Schmidle & Burton, 2001). In this way, companies develop a compensation plan that includes various aspects such as pay scales, reward programs, non-financial rewards, benefits packages and company perks. Organizations provide compensation and benefits through fixed and variable pay program that depends on employee performance. It is important for the organization to create right balance between fixed and variable pay programs that provides flexibility to deal with changing environment (Hirsch & Estreicher, 2009). ...
The expert examines human resource compensation and benefits.