Compensation involves the complete monetary and non-monetary pay of all the employees in line with their work. This may include base pay, bonuses, fringe benefits, and other financial awards. Effective compensation strategies will mean that only top talent can be both attracted and kept because their employees are sure that they are valued and equitably rewarded for their contribution.
However, employers are to balance competitive compensation packages with organizational financial constraints. Periodic reviews of the compensation structures, which may then be revised in line with market trends, employee performance, and organizational objectives, would also keep employers with a motivated and responsive human resource base. Employees may have the compensation policies communicated to them transparently, which may help to foster a feeling of trust among the employees along with their satisfaction.
You may also be interested in learning about these terms:
Compensation
Market Rate
Human Resources (HR)
