UNIVERSITY OF NORTHEASTERN PHILIPPINES

SCHOOL OF GRADUATE STUDIES AND RESEARCH

IRIGA CITY

EDUCATION 315 – STRATEGIC MANAGEMENT

REPORTER: MARIA ELENA R. SERGIO, MAEd

COURSE: Doctor of Education (Major in Educational Management)
PROFESSOR: DR. ELMER TENA
TOPIC: Compensation Management

What is Compensation?
- Compensation management is the discipline for determining employees' appropriate pay and
benefits. A critical element in talent management and employee retention, it uses financial and
nonmonetary benefits to attract recruits, reduce turnover, spur performance and boost employee
engagement.

Contents
- Introduction
- Objectives
- Components
- Importance
- Factor Affecting
- Conclusion

FACTOR AFFECTING
Demand & Supply of Labor Compensation Policy
Cost of Living The Org. to Pay
Society Job Analysis & Description
Labor Unions Employee
The Economy

Introduction:

- Compensation is a systematic approach to providing monetary & non- monetary value to

employees in exchange for work performed.
- Compensation may be defined as money received in performance of work and many kinds of
benefits that an organization provides their employees.

Compensation Components:

Direct Compensation
- Base pay, bonus, long term incentives, perks or perquisites
- Insurance, leaves, clothes, company parties, phones/laptop
- Retirement programs

Non-Monetary
- Enhance dignity and satisfaction from work performed.
- Promote social relationship with ci-workers
- Allocate sufficient resources to perform work assignments
- Offer supportive leadership and management
- Enhance physiological health, intellectual growth
 UNIVERSITY OF NORTHEASTERN PHILIPPINES
SCHOOL OF GRADUATE STUDIES AND RESEARCH
IRIGA CITY

EDUCATION 315 – STRATEGIC MANAGEMENT

Importance
- Job description
- Job analysis
- Job evaluation
- Pay structure
- Salary surveys

What is the importance of compensation management?

Compensation management is vital for employee motivation. Employees who are recognized for
the value they bring are more likely to be motivated, loyal and higher performing than those who're not.
There are different ways that management and HR department can communicate appreciation.

What are the benefits of compensation to employees?

increase or maintain morale/satisfaction. reward and encourage peak performance. achieve

internal and external equity. reduce turnover and encourage company loyalty.

How compensation motivates employees?

The salary compensates employees for performing all the tasks required of them and provides
them with a consistent income. The incentive (which can be commission for salespeople and a bonus for
others) motivates them to meet and exceed their goals and gives them the opportunity to increase their
earnings.