COMPENSATION AND BENEFITS

Compensation and Benefits



Compensation and Benefits

Introduction

Compensation is an important factor in the quality of employment, although this is not usually considered most important. It is clear that nonprofits are struggling to overcome in order to offer competitive salaries and benefits to attract and retain skilled personnel. Organizations can - and should - assert their strengths: people are also looking for jobs where they can improve things, challenges interesting and varied, and maintain positive working relationships. However, it is an inescapable fact that compensation has a lot, because it is a factor to which people attach great importance when discussing a post. The HR Council will enhance this section of HR (Golding, 2010).

Compensation and benefits includes the following terms: salary, wages, salaries, allowances, benefits (room service, private retirement plans, etc.) and incentives (prizes, bonuses, etc.). That is, all those payments, in cash or in kind, with which the organization rewards those who work in it. When considering the company's compensation system, they do in terms of cost / benefit, that is, when setting a fee or provide an incentive, expect a result of their investment (Golding, 2010).

Discussion

Wages are one of the most important factors in economic and social life of any community. Workers and their families depend almost entirely of salary to eat, dress, pay rent for the house in which they live and meet all other needs. In industry, wages are an important part of production costs for employers.

Governments have greatly interested because wage rates affect the country's social environment and such important aspects of the economy such as employment, prices and inflation, national productivity and the ability to export goods in an amount sufficient to pay imports and thus maintain the equilibrium of the balance of payments (Storey, 2007).

It is logical that the unions and their members seek wages are high, so that workers can better meet their basic needs. The high wages also have important advantages for the economy as a whole, because in the first place, ensuring strong demand for goods and services and also encourage increased productivity. While the ideal is that wages are high enough to boost demand for goods and services when they are too high excess production capacity and the result is inflation (Storey, 2007).

The fundamental problems of wages are the same in all countries, but differ in settlement procedures and methods of regulation. In some countries it is ...