Compensation (Human Resources) Essay Example | Topics and Well Written Essays - 500 words

Compensation (Human Resources) - Essay Exampleion is simply the salary of an employee while indirect wages is more different for it includes legal stipulation programs such as health insurance, retirement programs, paid leave or housing. Benefits and rewards receive by the employee from the employer is the non-monetary compensation. According to Tatum (2010), in order for employees to be more fat and motivated, business should provide more detailed incentive the total compensation package. The package should be well designed to attract, retain, and motivate competent workers in the organization.To break up on what role to be included in the compensation package is far more complicated than just deciding on the payment of employees. The expectations of the employees on what would their compensation package consist of, would be a pressure for the organization. The components of the total compensation package include total compensation (base pay and incentives), benefits, work-lif e balance and training, locomote and personal growth (Construction Business Owner, 2007). These components are needed for an organization to survive into todays tough business environment.Base pay and incentives are usually the largest component and the most common of a compensation package. These are important being the introduction of employment to assure that employees have comfort in their lifestyle. compensation would be based on the role of the worker on how the role is being delivered while incentive usually refers to the payment for performance.Benefits are the second component that typically provides medical benefits, dental plan, paid time off, holidays, social security and many others (Construction Business Owner, 2007). Giving benefits to their employees are adopted by over 80 percent companies today. This component is important to attract employees who are looking for long-term and stable jobs that would surely build loyalty in the organization. Another component of compensation package is the work-life