CHAPTER 6: Compensation and Benefits

In chapter we learned about Compensation strategies and why it is a must have in an

organization. Compensation is a tool used by management to create happier
workplaces. Compensation policies can be accustomed according the business
requirements, goals, and existing resources.
Compensation strategies can be used to: hire and retain top performer employees,
increase the satisfaction level of employees, reward and recognition programs to
inspire peak performance, achieve internal as well as external equity, lessen
turnover and boost company loyalty, adapt practice of transparent payment policies.
Compensation may also be used as an incentive for exceptional job performance.
Examples of such plans comprise: bonus, incentives, stock, share sharing and gain
sharing.