Compensation refers to the payment or the remuneration paid by the employer to the employees against the contribution and work done for the organization. Compensation management system is designed to make the process easy and efficient More about compensation management system: http://www.incentives-solutions.com

1. Compensation Management
System
http://www.incentives-solutions.com/

2.  Compensation refers to the payment or the
remuneration paid by the employer to the
employees against the contribution and work
done for the organization. The compensation
might involve monetary or non monetary benefits
provided to the employees. It is a systematic
process of remuneration provided in regular
intervals of time such as on quarterly or annual
basis. Compensation is a part of human resource
policy and an important part for the development
of the organization and its employees as a whole.
It is an organized practice which plays an
important role in balancing the relationship
between employee and employer.

3. Process of compensation
management

4. Process of compensation
management
 The process of compensation management
system involves reviewing the employees and
planning in advance the salary, bonus and
incentives of its employees for their contribution
to the organization’s development.
 The system is designed based on several factors
such as the objective of the organization,
strategies, responsibilities, nature of work and
other factors. The job work is analyzed per
employee, based on which the employee is paid
with remuneration. There are various components
of the system such as salary structure, job
analysis and pay structure. The system rewards
the employees accordingly with the achievement
of the company’s goal.

5. Importance of compensation
management

6.  Compensation management system is not just
restricted to the retaining of talent but to increase
the competitiveness. The process involves
integrating the employees and optimizes their
performance to achieve the maximum output and
to effectively obtain the organization’s goal

7.  It is an integral part of human resource policy and
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strengthens the employee-employer relationship
It motivates the employee to achieve the
organization’s goals and productivity
It helps to increase the efficiency of the
organization and achieving of the goals on time
The best talents are retained in the organization
and new talents are also attracted with attractive
compensation packages
It develops an interest among the employees to
realize the organization’s long term strategies and
work for the success of the organization
It helps to increase the standard of the
employees and the standard of the organization
as well
It induces enthusiasm, self discipline and
dedication among the staff members

8. Compensation management
software

9.  The importance of compensation management has
paved a path for the development of compensation
software to effectively handle compensation
management system. The software is designed to
help the various organizations to provide
remuneration effectively to the employees. The
software is developed to assess the talents of the
organization and provide the maximum reward to the
most talented employees to maximize the company’s
returns. The software helps to review the
performance and optimize the bonus, benefits and
salary. Competent human resource management is
highly required by the organization to effetely
organize the compensation system to rightly award
the right talented people and attract new pools of
talents to the organization. The ultimate aim is to
retain the good workforce minimizing burnout and
attract new talents.