Answer to Question #302355 in Management for NDhar

Question

Describe what compensation is and give at least three examples of core compensation practices followed in organizations

Answer 1

Compensation is the total cash and non-cash incentives, such as insurance, commissions, bonus, and vacation time that you give to an employee awarding them for the work done in a business or organization.

Three examples of compensation practices used in an organization include;

1.   Paying high performing employees

High-quality performance means a high salary. This practice enables the employees to put more effort into their work and it can also create room for recruiting hardworking employees who will increase productivity in the organization

2.   Develop a pay range

Pay range provides consistency in an organization because employees will be paid for work done, keeping in mind the education, experience, or performance levels. It also creates competitiveness among organizations as they will increase the minimum and maximum to get a better performer.

3.   Reviewing employee compensation consistently

Reviewing helps in determining if the goals have been achieved and also to determine if the payment received by an employee reflects their performance.