Compensation DOE

De BISAWiki

Employee compensations play a big role in having the right people for the job. An attractive compensation package attracts the proper applicants to a vacant position and retains high 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 provided by the company. Compensation also describes monetary and non-monetary advantages given by the organizations to the employees to motivate them in performing their job. Financial compensation examples include: wage, salary, allowance, and bonus, commissions, while non-monetary compensation examples are: children education, transportation, medical benefits and many more. There are various kinds of Total Compensation, in many organizations, wages and salaries are different in a few ways although both refer to regular monetary compensation. Incentives are even different altogether. Wages in many companies refer to the compensation paid by employers to workers. Usually paid within an hourly rate, this really is paid to groups such as for example people who work in production or maintenance; this may have family allowance, relief pay along with 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 on the other hand are schemes or programs of companies to motivate their staff. Normally, this is monetary but can also include a number of non-monetary benefits and/or prizes. There are many factors that affect compensation. A number of them are: -The company's power to pay - The prevailing compensation and benefits in the market -Availability of competent and qualified people for the position -Performance and productivity of the employee -Qualifications and relevant experience of the employee- Compensation DOE And others. Compensation often means different things to different people. A manager and an employer might have a different perception in regards to compensation and wages. For more Information please visit www.about-compensation.com