To attract highly capable and efficient employees so that their efforts produces higher organizational performance. To retain talented employees for continuance of organizational performance and attainment of higher levels of competence.

1. Objectives of compensation management
Compensation Management

2. Prepared By
Kindly restrict the use of slides for personal purpose.
Please seek permission to reproduce the same in public forms and presentations.
Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Objectives of compensation management
• To attract highly capable and
efficient employees so that
their efforts produces higher
organizational performance.
• To retain talented employees
for continuance of
organizational performance
and attainment of higher levels
of competence.

4. Objectives of compensation management
• To increase the motivation and
morale of employees for
achieving higher employee
commitment towards goals and
objectives of the organization.
• To maintain market
competitiveness in order to
reduce or control employee
attrition which can affect
organizational functioning.

5. Objectives of compensation management
• To reward employees for their
productive contributions to
organization's bottom line.
• To integrate employee efforts
with organizational
performance management
systems for increased
effectiveness.

6. Objectives of compensation management
• To build employer branding
which is key to building a
pool of potential hires.
• To help employee meet
their economic, personal,
material, social and
psychological needs and
aspirations.

7. Objectives of compensation management
• To encourage employees to
develop their skills and
competencies by attaching
higher values to
compensation for increased
job performance.
• To elicit needed and
desirable behaviors from
employees.

8. Objectives of compensation management
• To comply with labor and
social legislations such as
The Minimum Wages Act,
1948, Equal Remuneration
Act, 1976, Section 529 –A
of the Companies Act,
1956 etc.