What Is Compensation

De BISAWiki

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Edição de 20h36min de 3 de maio de 2013

Employee compensations play a big role in obtaining the right people for the work. An appealing compensation package attracts the proper applicants to a vacant position and retains top quality employees. What Is Compensation? Compensation identifies wages, salary and/or incentives received by a worker for the performance of his/her job that also contains other types of services and benefits that can be supplied by the company. Compensation also describes monetary and non-monetary advantages given by the employers to the employees to encourage them in performing their job. Monetary compensation examples include: wage, salary, allowance, and bonus, commissions, while non-monetary compensation examples are: children education, transportation, medical benefits and others. You will find various kinds of Total Compensation, generally in most businesses, wages and salaries are different in some ways although both make reference to regular monetary compensation. Incentives are even different altogether. Wages in many companies refer to the compensation paid by employers to workers. Often paid in an hourly rate, that is paid to groups such as for instance those that work in production or maintenance; this could also include family allowance, relief pay as well as other financial support. Salary is paid to employees who work in a clerical, administrative, and professional capacity. Often salaries are based on a weekly or monthly rate. Incentives however are schemes or programs of companies to motivate their staff. This is usually monetary but may also include a selection of non-monetary benefits and/or prizes. There are numerous factors that affect compensation. Some of them are: -The company's capability to pay - The prevailing compensation and benefits in the market -Availability of competent and qualified people for the positioning -Performance and productivity of the employee -Qualifications and relevant experience of the employee- Compensation DOE And others. Compensation can mean different things to differing people. A manager and an employer might have a different perception when it comes to compensation and wages. To find out more please visit www.about-compensation.com