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Total Compensation Methods Paper

In: Business and Management

Submitted By henryb916
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Total Compensation Methods Paper

Total Compensation Methods Paper
In all businesses, a company needs to make sure that their turnover ratio is maintained while, at the same time, keep their best employees. Compensation and benefits are just two ways that a company can do such things. The company must know what each individual is looking for at the same time. Not all employees want the same thing. Some employees want the steady 40 hour 5-day a week salary job, while others may want 4-day weeks and more paid time off. By providing a proper balance of all items such as compensation, benefit programs, and salary, the administration of the company can keep their excelling employees and may not have to worry about a huge turnover ratio.
Compensation Methods
“Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.” (HR Guide to the Internet) In this type of economy, many businesses will start to freeze wages and stop giving their employees any type of compensation. However, this may hurt the employee morale. By giving out a reward for an excellent job performance at times, a company could see a bigger profit in this rough economy. There are a few different types of compensation methods. These methods include but are not limited to the following:
• Commission
• Overtime
• Bonus
• Expense Allowances
Commission can be given to employees if they sell a certain number of items or a certain amount of profit that an employee brings in. Overtime is different at all companies and can be a very big benefit to those who are not on salary pay. Bonuses can be awarded if a certain goal has been met by a particular employee. Finally, expense allowances can be given to those who may have to...

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