Compensation management system


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Compensation refers to the payment or the remuneration paid by the employer to the employees against the contribution and work done for the organization. Compensation management system is designed to make the process easy and efficient

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Compensation management system

  1. 1. Compensation Management System
  2. 2.  Compensation refers to the payment or the remuneration paid by the employer to the employees against the contribution and work done for the organization. The compensation might involve monetary or non monetary benefits provided to the employees. It is a systematic process of remuneration provided in regular intervals of time such as on quarterly or annual basis. Compensation is a part of human resource policy and an important part for the development of the organization and its employees as a whole. It is an organized practice which plays an important role in balancing the relationship between employee and employer.
  3. 3. Process of compensation management
  4. 4. Process of compensation management  The process of compensation management system involves reviewing the employees and planning in advance the salary, bonus and incentives of its employees for their contribution to the organization’s development.  The system is designed based on several factors such as the objective of the organization, strategies, responsibilities, nature of work and other factors. The job work is analyzed per employee, based on which the employee is paid with remuneration. There are various components of the system such as salary structure, job analysis and pay structure. The system rewards the employees accordingly with the achievement of the company’s goal.
  5. 5. Importance of compensation management
  6. 6.  Compensation management system is not just restricted to the retaining of talent but to increase the competitiveness. The process involves integrating the employees and optimizes their performance to achieve the maximum output and to effectively obtain the organization’s goal
  7. 7.  It is an integral part of human resource policy and       strengthens the employee-employer relationship It motivates the employee to achieve the organization’s goals and productivity It helps to increase the efficiency of the organization and achieving of the goals on time The best talents are retained in the organization and new talents are also attracted with attractive compensation packages It develops an interest among the employees to realize the organization’s long term strategies and work for the success of the organization It helps to increase the standard of the employees and the standard of the organization as well It induces enthusiasm, self discipline and dedication among the staff members
  8. 8. Compensation management software
  9. 9.  The importance of compensation management has paved a path for the development of compensation software to effectively handle compensation management system. The software is designed to help the various organizations to provide remuneration effectively to the employees. The software is developed to assess the talents of the organization and provide the maximum reward to the most talented employees to maximize the company’s returns. The software helps to review the performance and optimize the bonus, benefits and salary. Competent human resource management is highly required by the organization to effetely organize the compensation system to rightly award the right talented people and attract new pools of talents to the organization. The ultimate aim is to retain the good workforce minimizing burnout and attract new talents.