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Total Compensation Methods - Essay Example
Employees are an asset to the organization. When we think of our company's success we look at measures and steps to achieve it. The first thing that would help us in achieving our goals would be our employees. The question arises how to make them achieve those goals, how to make them more productive, how to keep them happy and most importantly how to retain the best of all employees…
Compensation and benefits, like we all know are rewards that an organization gives to its employees in return of their efforts and services that they have given. These rewards may vary from direct to indirect forms. There are various methods to compensate employees and each method and benefits may have its own impact on the employees and on overall the organization, and this is what we are going to discuss below.
This is one method of compensating those employees who have certain needed skills, whether job related or not. This is a creative way of paying for the internal skills and gives a flexible job design, where employees could move from one assignment to another on periodic basis.
This is another method of compensating employees. Here those employees are compensated who are the key performers. They are though paid within a certain pay range. The organization here does not need to promote its employees, as they would already be paying them more comparatively. Broadbanding normally provides flexibility, entrepreneurial management style and performance orientation.
Provides flexibility to the employees, promotes lateral development of employees, helps in developing employees skills and encourages a team focus and directs empl ...