Delos Reyes, Justine Manuele

FM1A
Compensation

A compensation package does not automatically imply money. Also, the package includes
advantages such as medical care and work-life balance, and bonuses for the employee's benefit.
They do not only do it for the money anymore. Their income is not the only thing that matters to
them. Employers who want to keep their best workers know that they need to offer good benefits
and pay packages. People who get paid for their work get wages, bonuses, and commissions as
part of that. Employers should not forget to include them in their employees' pay and benefits
when it comes to perks.

Employees might be enticed to take on more responsibilities by offering a more lucrative

remuneration package as they progress up the corporate ladder. A new department director
position was formed due to technological advancements, necessitating the creation of a new
position. In the future, organizations will require knowledgeable and talented people to stay up
with current trends. To ensure that employees are paid correctly, and in line with state and
federal legislation, Human Resources has previously been in charge of this. However, the
problem goes far deeper than that. In order to maintain a productive workforce, it is critical to
consider compensation as a critical component of your value offer for employees.

The longer an employee stays at a firm, the more likely they will recommend it to others.
There will be fewer expenses associated with employee turnover if employees are more inclined
to remain in their current positions. Employees are driven to work hard because their employers
provide cash incentives. Individuals are more likely to succeed because it inspires them to keep
going. Employees who are happy and well-paid are more likely to stay with their company. One
reason people stay at a company is that they are paid fairly. There is no need for business owners
to keep looking for new employees if they are loyal to them. Employers who build a workforce
that knows what they do get to keep their employees and have a low turnover rate. This group
wants to work together as a team, and as a result, they do a great job. It is more probable that a
pleased employee would put in more effort. Motivated and committed employees contribute to
increased productivity, which benefits the company. Employees who have been with the
organization for a long-time gain experience and expertise, making them more valuable. There
will be additional work done as a result of all this.
On the other side, a lack of adequate compensation can significantly impact the
effectiveness and productivity of an organization's workforce. Employees will feel undervalued
and unhappy with their work, which will lead to low productivity and morale. Employee
dissatisfaction and a drop in company morale could also happen. A low pay rate causes poor
productivity. Employees are less likely to try for greatness because of this. Employees should
look for jobs outside of their current job when their return-to-work ratio is low to get more
experience. Much money is spent when a worker leaves the company.