Compensation



How to retain the best employees through compensation

Introduction

Retaining the best employees for any organization is very important. One of the ways to retain employees is compensation. The other methods include positive feedback, managers to become coaches, challenging experiences, appraisals, careers advancement and work environment. Compensation is able to retain best employees of the organization. Compensation can be in the way of increasing the salary package, giving out bonus or paying the employees for recognition of their services. Pay is in the hands of motivators to retain employees; it is usually in the bottom list with other benefits. Long-term strategy can be given to the managers by overpaying or raising potential employees. The employer must make clear to the employees where they should be expecting and where they should be giving. Monetary compensation is a material compensation but it is also a token of appreciation for the services rendered by the employees. The employer must not offer material compensation to the employees in such a way that they feel that they are only working for the money. The employer must sue material compensation tactfully and with clear effort to retain and motivate employees (Lilley, 2004).

Compensation

The employer must motivate and retain employees through compensation and benefits keeping in mind the way competitors give compensation to their employees. The compensation and benefits provided by the company must be competitive. To keep one's company competitive in the market, the employers must develop new pay systems time to time. Compensation generally comprises of profit sharing, salaries, pension and healthcare, bonus programs, paid time off, tuition reimbursement. These ways of compensating employee give out the message that their presence and work is important to the organization. The rewards in terms of compensation must be given to the employees in such a way that they must have a meaningful impact on the perceptions of the employees. This will mark the retention efforts on behalf of the organization. The organization must provide compensation and benefits to the employees as promised (Linstead, 2009).

Compensation is a key variable driving. It contributes to the development of performance; conditions internal social balance keeps employees in the unit and attracts talent. So motivating wage increase the performance of the company, helping to attract skilled employees. Compensation can be understood as the set of monetary and nonmonetary rewards received by employees as part of their employment relationship (contribution) with the organization. However, it should be noted that the remuneration has several components. It includes the total compensation which includes direct compensation (paid in cash to employees) plus indirect compensation (not paid staff) plus non-monetary remuneration.

The concept of total compensation is a concept that should be used more often in public debate on the compensation of state employees. Competitiveness and business performance depend largely on the motivation of its employees. Even if the wage component is not the tool, it contributes significantly and this through the many forms of remuneration that may have an effect on motivation. It should be noted that the ...