1. By
‘Yinka Akinnubi

2.  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

3. 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

4.  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

5. .
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

6. .
Components
 Salary Survey
 Job Analysis
- Job Evaluation
- Job Description
 Pay Structure
 Policies & Regulations
.

7.  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

8.  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

9. 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

10.  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

11.  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.
Profile

12. THANK YOU