Total Compensation

De BISAWiki

Employee compensations play a huge role in obtaining the right people for the work. An appealing compensation package attracts the proper applicants to a vacant position and retains high-quality employees. What Is Compensation? Compensation describes wages, salary and/or incentives received by a worker for the performance of his/her job that also contains other kinds of services and benefits that may be supplied by the company. Compensation also refers to monetary and non-monetary advantages given by the organizations to the workers to motivate them in performing their job. Monetary compensation examples include: wage, salary, allowance, and bonus, commissions, while non-monetary compensation examples are: kids education, transportation, medical benefits and many others. You can find different types of Total Compensation, in most businesses, wages and salaries are very different in some ways although both make reference to regular monetary compensation. Incentives are even different altogether. Wages generally in most companies refer to the compensation paid by employers to workers. Frequently paid in an hourly rate, this really is paid to groups such as for instance those who work in production or maintenance; this may have family allowance, relief pay and other financial support. Salary is paid to employees who work in a clerical, administrative, and professional capacity. Usually salaries are derived from a weekly or monthly rate. Incentives alternatively are schemes or programs of organizations to motivate their workers. This is usually monetary but can also include a variety of non-monetary benefits and/or prizes. There are many factors that affect compensation. Some of them are: -The company's power to pay - The prevailing compensation and benefits in the industry -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 many others. Compensation can mean different things to different people. A manager and an employer would have a different perception when it comes to compensation and wages. For more Information please visit www.about-compensation.com