Compensation & Benefits Essay Example | Topics and Well Written Essays - 3750 words

Compensation & Benefits - Essay ExampleIncentive compensation and benefits play an important role in qualification a company achieve higher(prenominal) levels of employee productivity. Compensation is one of the major motivating sources behind employees productivity and if a company offers attractive benefits for its employees as a result of their individual performances, the employees become cause and inspired to do more for the company. Therefore, we can say that employee productivity directly depends on the compensation and benefits being offered to them by the company.Companies use compensation and benefits programs for various reasons. nigh of the major reasons for implementing compensation intentions include hiring and retaining talented employees, increasing moral of the employees, encouraging the performances of the employees, achieving quality in every business activity, encouraging employees loyalty with the company, reducing the turnover, and making the employees satis fied with the company. These were some of the reasons of why companies design and implement different kinds of compensation and benefits programs for the employees.There are some important factors, which need to be considered while design and implementing a proper compensation and benefits plan in a company. These factors play an important role in the successful implementation of a compensation plan. If a company wants to develop a compensation plan for its employees, it needs to take into consideration these factors in order to get desired results from the plan. If any of these factors is overlooked, the compensation plan will not be able to produce expected results for the company. Some of those factors include validations culture, statement of plans objectives, linking performance to organizations goals and objectives, needs and demands of the employees, discrimination, employees