Compensation (Human Resources) Essay Example | Topics and Well Written Essays - 500 words

Compensation (Human Resources) - Essay Exampleion is simply the salary of an employee while substantiative recompense is more different for it acknowledges legal obligation programs such as health insurance, retirement programs, gainful leave or housing. Benefits and rewards receive by the employee from the employer is the non-monetary compensation. According to Tatum (2010), in order for employees to be more plentiful and motivated, business should provide more detailed incentive the total compensation package. The package should be easy designed to attract, retain, and motivate competent thespians in the organization.To decide on what circumstances to be included in the compensation package is far more complicated than just deciding on the payment of employees. The expectations of the employees on what would their compensation package consist of, would be a pressure for the organization. The components of the total compensation package include total compensation (base pay a nd incentives), benefits, work-life balance and training, c arer and personal growth (Construction Business Owner, 2007). These components are call for for an organization to survive into todays tough business environment.Base pay and incentives are usually the largest component and the most common of a compensation package. These are important being the introduction of booking to assure that employees have comfort in their lifestyle. Salary would be based on the role of the worker on how the role is being delivered while incentive usually refers to the payment for performance.Benefits are the second component that typically provides medical benefits, dental plan, paid time off, holidays, social security and many others (Construction Business Owner, 2007). plentiful benefits to their employees are adopted by over 80 percent companies today. This component is important to attract employees who are looking for long-term and stable jobs that would surely build loyalty in the organi zation. Another component of compensation package is the work-life