Project Plan

Team Members

 Gargi Sharma
 Neha Damodaran
 Surbhi Gulati
 Abhinav Jain
We as a team looked at all the options available in choosing a topic and came upon the
conclusion of making our report on Effective Compensation System as we know for any
business whether small or big spends most of its budget on its employees and employees
are key in running any business. Thus, we chose to dive deep into the topic to enhance our
knowledge and state our findings in the report.
Effective Compensation Systems
When your company strives to achieve both short-term and long-term objectives, an
effective compensation management strategy covers the full concept of what your company
values. When a plan for managing compensation contains a philosophy, strategy, pay
standards, policies, and procedures, it is considered to be comprehensive. There are many
different performance measures to assess and hundreds of aspects to take into account
when creating a comprehensive executive compensation plan. A smart plan can help your
company attract top personnel and motivate them. A company's executive compensation
might represent the difference between long-term success and a string of failures and
underperformance. Check out our whitepaper on utilising compensation software to
decrease mistakes while saving time & money for more information on compensation.
Why make a compensation system?
While still recruiting productivity and rewarding current workers and executives for their
efforts, a well-researched and effective compensation strategy enables you to accomplish
pay equity and other crucial goals. By creating a suitable pay structure, you can be
adaptable as the needs of your organisation change while also recruiting and keeping talent.
One of the most challenging duties for an HR department or compensation planning team to
take on is pay management, particularly in highly competitive and regulated areas like
financial services.
Businesses require a carefully thought-out compensation system in order to remain
competitive in their market, as well as to draw in and keep top people. Employers who give
their staff members whatever compensation they feel they deserve will inevitably lag
behind their competitors in the race for talent. Additionally, managing a staff without a
predetermined budget is insane.
The majority of a company's net payroll costs go toward employee compensation. According
to a Deloitte report, employee compensation may make up as much as 70% of an
organization's overall spending. Business owners and administrators, especially those with
expertise in human resources, should be aware of the impact that compensation
administration has on an organisation. If you are aware of the effects compensation
management has on your business, you can assist in selecting the ideal pay management
system.