What Is Compensation

De BISAWiki

Employee compensations play a considerable role in getting the right people for the work. An appealing compensation package attracts the best applicants to a vacant position and retains high-quality employees. What Is Compensation? Compensation refers to wages, salary and/or incentives received by a worker for the performance of his/her job that also includes other forms of services and benefits that may be provided by the organization. Compensation also describes monetary and non-monetary advantages given by the employers to the workers to motivate them in performing their job. Financial compensation examples include: wage, salary, allowance, and bonus, commissions, while non-monetary compensation examples are: kids education, transportation, medical benefits and many more. You will find different types of Total Compensation, generally in most organizations, wages and salaries will vary in a few ways although both refer to regular monetary compensation. Incentives are even different altogether. Wages generally in most companies refer to the compensation paid by employers to workers. Usually paid in a hourly rate, that is paid to groups such as those that work in production or maintenance; this might 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 derived from a weekly or monthly rate. Incentives alternatively are schemes or programs of organizations to motivate their workers. It's usually monetary but also can include a number of non-monetary benefits and/or prizes. There are various factors that affect compensation. Many of them are: -The company's ability to pay - The prevailing compensation and benefits on the market -Availability of competent and qualified people for the career -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 sort of perception in relation to compensation and wages. For more Information please visit www.about-compensation.com