Human Resource Management (HRM) has been very symbolic in these days. Companies want their employees to be updated, motivated so that they can meet their objectives. Companies are managing their employees very efficiently and effectively as they are assets of that company. Compensation Management is one of the important option where employees can be motivated ,attracted. In this blog, I shall define compensation and benefits along with their advantages for a company and its employees.
Suppose, you own a Resturant. Let’s call it LaDona – or you can give any name of your liking. You have hired two persons for marketing, one cook, two waiters and a receptionist . The marketing persons are responsible to look after the sales affairs. The cook and waiters will be responsible for cooking and attending the guest. The receptionist’s duties are to handle the cash and manage the account. I shall refer to this illustration throughout this blog.
Compensation:
Would the two marketing persons and the receptionist will work for free? Not at all. They would expect something in return. You all knew the common phrase: Give and Take. People always expect something from you in return when they are giving things to you.
Compensation is the perfect meaning to this give and take policy, but in terms of money . Compensation is the employer’s feedback for an employee’s work. It simply means the monetary value you would give to your six employees in return of their works.
Gary Dessler defines compensation as “Employee compensation refers to all forms of pay going to employees and arising from their employment.” ‘All forms of pay’ this phrase in the definition does not explain non-financial benefits, but all the direct and indirect financial compensations. HR Spot - Best HR Payroll Management Training Institute
Benefits:
Today’s Employees are not willing to work only for the fixed salary, they expect some ‘extra’. This extra is known as employee benefits. Employee benefits are non-financial form of compensation offered in addition to cash salary .
What benefits would you offer to your employees at LaDona? Definitely, you would offer different benefits to the marketingvpersons and the receptionist. Problem will arise when you begin to decide what benefit to give to whom and on which basis? Employee benefits are not performance-based, they are membership-based. Employees get these benefits regardless of their performances. As a whole Employee benefits have no direct affect on employee performance, however, less benefits do contribute to low satisfaction level and increase absenteeism and turnover in employees. So you would have to design your benefit proposal carefully. Your proposal may include a contact number to each worker, taking them to a professional training workshop or seminar, giving them a day or two off every month except their weekly off and so on. While deciding on the benefits package, do consider the additional costs. HR Spot-Best HR Training Institute, Best HR Courses
ADVANTAGES OF COMPENSATION AND BENEFITS.
A well designed compensation and benefits proposal not only helps to motivate and attract real talent in your firm (LaDona) but also will benefit your restaurant in the following ways.
Job satisfaction: Your employees would be happier with their jobs and would love to work for you if they get fair remuneration in exchange of their services. They can work for some extra hour also.
Motivation: Everyone is having different kinds of needs. Some of us want only money, so they work for the company which gives them higher pay cheque. Some of us need achievement more than money, they would work for those firms who offer greater chances of promotion, learning and development. A compensation plan that hits employees’ needs is more likely to motivate them to act in the desired way.
Low Absenteeism: Make sure about the healthy office environment. Why would anyone want to skip the day and do not-so-favourite work at home if they enjoy the office environment and are happy with their salaries and get what they need and want?
Low Turnover: Would your employees want to work for any other restaurant if you offer them fair salary with benefits. Rewards which they thought they deserved are they getting it? Make sure about that.
ADVANTAGES TO YOUR EMPLOYEES
1. Peace of Mind: your offering of several types of mediclaims or insurance to your employees relieves them from certain fears . Your employees now work with relaxed mind.
Increases self-confidence .
3. You can arrange one day outing to make a healthy relationship in between the employer and the employee.
From India, undefined
5Suppose, you own a Resturant. Let’s call it LaDona – or you can give any name of your liking. You have hired two persons for marketing, one cook, two waiters and a receptionist . The marketing persons are responsible to look after the sales affairs. The cook and waiters will be responsible for cooking and attending the guest. The receptionist’s duties are to handle the cash and manage the account. I shall refer to this illustration throughout this blog.
Compensation:
Would the two marketing persons and the receptionist will work for free? Not at all. They would expect something in return. You all knew the common phrase: Give and Take. People always expect something from you in return when they are giving things to you.
Compensation is the perfect meaning to this give and take policy, but in terms of money . Compensation is the employer’s feedback for an employee’s work. It simply means the monetary value you would give to your six employees in return of their works.
Gary Dessler defines compensation as “Employee compensation refers to all forms of pay going to employees and arising from their employment.” ‘All forms of pay’ this phrase in the definition does not explain non-financial benefits, but all the direct and indirect financial compensations. HR Spot - Best HR Payroll Management Training Institute
Benefits:
Today’s Employees are not willing to work only for the fixed salary, they expect some ‘extra’. This extra is known as employee benefits. Employee benefits are non-financial form of compensation offered in addition to cash salary .
What benefits would you offer to your employees at LaDona? Definitely, you would offer different benefits to the marketingvpersons and the receptionist. Problem will arise when you begin to decide what benefit to give to whom and on which basis? Employee benefits are not performance-based, they are membership-based. Employees get these benefits regardless of their performances. As a whole Employee benefits have no direct affect on employee performance, however, less benefits do contribute to low satisfaction level and increase absenteeism and turnover in employees. So you would have to design your benefit proposal carefully. Your proposal may include a contact number to each worker, taking them to a professional training workshop or seminar, giving them a day or two off every month except their weekly off and so on. While deciding on the benefits package, do consider the additional costs. HR Spot-Best HR Training Institute, Best HR Courses
ADVANTAGES OF COMPENSATION AND BENEFITS.
A well designed compensation and benefits proposal not only helps to motivate and attract real talent in your firm (LaDona) but also will benefit your restaurant in the following ways.
Job satisfaction: Your employees would be happier with their jobs and would love to work for you if they get fair remuneration in exchange of their services. They can work for some extra hour also.
Motivation: Everyone is having different kinds of needs. Some of us want only money, so they work for the company which gives them higher pay cheque. Some of us need achievement more than money, they would work for those firms who offer greater chances of promotion, learning and development. A compensation plan that hits employees’ needs is more likely to motivate them to act in the desired way.
Low Absenteeism: Make sure about the healthy office environment. Why would anyone want to skip the day and do not-so-favourite work at home if they enjoy the office environment and are happy with their salaries and get what they need and want?
Low Turnover: Would your employees want to work for any other restaurant if you offer them fair salary with benefits. Rewards which they thought they deserved are they getting it? Make sure about that.
ADVANTAGES TO YOUR EMPLOYEES
1. Peace of Mind: your offering of several types of mediclaims or insurance to your employees relieves them from certain fears . Your employees now work with relaxed mind.
Increases self-confidence .
3. You can arrange one day outing to make a healthy relationship in between the employer and the employee.
From India, undefined
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Published_draft _rules_on Employees_ compensation 3.6.2020.pdf
Compensation Benchmarking Survey.doc