Human Resource Management - Compensation & Benefit

Human Resource Management - Compensation & Benefit

Compensation and benefits refer to the benefits a firm provides to its employees in exchange for their labor.

When you receive a job offer, the first thing you look at is the salary.

Whether the recruiter lists the wage as an hourly, weekly, monthly, or hourly rate, candidates see it as the most critical part of any job offer.

However, compensation & benefit is far more than just the regular paycheck.

The goals of compensation & benefit are to attract people to work for your organization and to retain people who are already working in the organization.

Compensation is completely related to the money which is being paid to an employee i.e. salary. bonuses etc. 

A compensation package can include:

• Bonus

• Merit Salary System

• Pay Per Performance

• Profit Sharing Plan

• Gain Sharing Plan

• Pay for Knowledge Plan

Multiple Choice

Bonus is Individual performance incentive in the form of a special payment made over and above the employee’s salary.

• True

• False

Multiple Choice

Pay per Knowledge plan is and incentive to encourage employees to learn new skillset become proficient at different jobs.

• True

• False

Benefits are the non-monetary incentives given to employees like health benefits for which the employee doesn't have to pay.

Cafeteria Benefits Plans

Benefit plans that offer employees a choice of benefits based on cost.

Employees can pick and choose from those benefits and put together a benefit package that works best for them within the established cost structure.

A benefit package include:

• Retirement Plans

• Pensions Scheme Design

• Private Medical Insurance

• Health Cover

• Life Insurance

• Share Schemes