Compensation management refers to the development and implementation of sound compensation policies, programs, and practices. It is one of the important aspects of human resource management that aids in employee motivation and organizational effectiveness. It is framed in a way under which the use of a systematic and scientific approach will be done to fairly and logically compensate employees for their work. Non-monetary benefits such as a company-paid car, company-paid housing, and stock options can be included in compensation. Compensation is a major factor in employees' decisions to join or stay with a company, so compensation strategy and planning are critical in organizations that want to attract and retain the best employees. What are the objectives of compensation management? Maintain a qualified workforce. Attract the right people. Assess performance, duty, and plan for the better advancement of work. Determine compensation and salary costs to reflect changes in market ra...
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