the role of compensation manag
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TRANSCRIPT
By
‘Yinka Akinnubi
Compensation is a systematic approach to providing monetary
value to employee in exchange for the work performed.
It refer to the methods of maintaining balance between
interests of company & attracting, developing, retaining and
rewarding employees through wages and salaries.
Compensation includes all forms of direct wages, salaries,
incentives, commissions and bonuses given to the workforce of
an organization.
Compensation management is one of the key activity that
support workforce performance and talent management
process.
Definition
Compensation is one of the main function of the human resource
management (HRM) functions. Compensation is an integral
part of human resource management which helps in motivating
the employees and improving organizational effectiveness
The below terms are usually linked with compensation
management in an organization:-
Equity
Motivation
Employee Appraisal
Background
To design pay systems that elicit desired behaviors by employee at work
To motivate employee to join, stay and perform at their highest potential
For organization to maintain competitive edge and retain high performing employees.
For the organization to remain ethical and legal in its compensation programs
.
Objectives
.
Benefits
Recruit and retain qualified employees
Increase or maintain morale/satisfaction
Reward and encourage peak performance
Achieve internal and external equity
Reduce turnover and encourage organization
loyalty
.
Components
Salary Survey
Job Analysis
- Job Evaluation
- Job Description
Pay Structure
Policies & Regulations
.
Limited alignment between pay and performance.
Absence of an integrated process for all aspect of compensation
management.
Lack of integration of compensation and talent management
applications.
.
Challenges
Transition from the piecemeal compensation
approach to total rewards compensation system.
Use of variable pay and benefits scheme.
Compensation is gradually been draw based on
competency/performance compared to the
traditional compensation system.
Trends
The role of compensation in employee motivation and workforce
performance is critical, below are some of the key business
opportunities that consulting firms can provide to other organization
viz-a-viz :-
Advisory Services
A sustainable compensation management are important to motivate the
employees to increase their organizational productivity.
An effective compensation management helps in making an organization
accomplishing its goals much faster and seamless.
Salary is just a part of the compensation system, the employees have other
psychological and self-actualization needs to fulfill. Thus, a compensation
management system serves many purposes.
The most competitive compensation will help the organization to attract and sustain
the best talent. The compensation package should be as per industry standards
Conclusion
I consider myself a Human Resource Generalist with extensive knowledge of organizational
restructuring, employee management/engagements, and other gamut of HR functions.
An enthusiastic and dedicated individual, with high intellectual curiosity and a non-sticker for
status quo, an outstanding performer who takes prides in it works.
My careers expertise revolves around key industries including Banking, Media & Publishing,
Consultancy etc.
I am a certified Human Resource Business Professional, with Society for Human Resource
Management, Virgina USA, and an associate member of the Chartered Institute of Personnel
Management, Nigeria.
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