HUMAN RESOURCE MANAGEMENT

Human Resource Management

Human Resource Management

Introduction

Today many companies recognize and understand that managing employees and attempting to keep them happy is not anymore important than developing a great product. Therefore, human resources, the management of personnel is known as one of the most important components within an organization. Almost all employers should know that their best asset is its employees. Good employees reward its employees who perform well and that is also part of the fundamental element within an organization and the key for an employer to retain good employees. Salary and benefits are why most employees remain employees at companies they work with. Salary and benefits within an organization are the key strategic tools for employers to retain employees and those key elements help to dictate the organizations culture and performance.

What is Compensation to the employees?

Compensation is the total of all rewards provided to employees in return for their services. Compensation comes in two types - financial and non financial. Direct financial compensation consists of the pay that a person receives in the form of wages, salaries, commissions and bonuses. Indirect financial compensation consists of legally required compensations such as social security, unemployment insurance, workers compensation and family and medical leave as well as voluntary compensations such as paid vacation and sick time, health benefits, security benefits (retirement), and employee services like child care, tuition reimbursement and wellness services (company gym). The non financial compensation consists of the satisfaction that a person receives from the job itself or from the psychological and or physical environment in which the person works.

Compensation is fee to a member of staff in return for their input to the organization, that is, for liability of their job. The most common forms of direct compensation are wages, salaries and tips. Employees have certain monies denied from their payroll tests, generally encompassing government earnings levy, state earnings levy, FICA (social security) assistance, and worker assistance to the charges of certain advantages (often health protection and retirement). Indirect compensation includes insurance, retirement and paid vacation, holidays, and sick days.

People have different reasons for working, and the most appropriate compensations package depends in large measure on those reasons. When individuals are being stretched to provide food, shelter and clothing for their families, money may well be the most important reward. However, some people work long hours each day, receive little pay and yet love their work because it is interesting or provides an environment that satisfies other needs. For me my benefits make op 46 percent of my pay and that to me is a significant amount. Health Benefits are number one priority for me when seeking employment (Noe, Hollenbeck, & Gerhart, 2006, PP. 359-455).

Compensation (payment in the pattern of hourly salaries or annual salaries) and advantages (insurance, retirement benefits, holiday, changed workweek, ill days, supply choices, etc.) can be a catch-22 because an employee's presentation can be leveraged by reimbursement and advantages, and vice versa. In the bank, employees feel they are paid what they ...