ims of employee compensation:-
- Attract capable employees to the organization.
- Motivate them toward superior performance.
- Retainment of their services over an extended period of time.
The aim of employee compensation can further describe as under: –
- Attract capable employees to the organization:-
Every organization looks for retaining capable employee with the organization. Infact, retaining an employee is the most difficult function of HR Department. So for retaining an efficient employee with the organization, he has to be provided with better compensation. That compensation that he is going to be provided should include better salary perks, increments, promotions etc. So, a better compensation package is going to attract the efficient employee who is very useful to an organization.
- Motivate them toward superior performance:-
For any employee, money is the main motivator. If every employee of an organization is provided with better compensation, every body will be motivated to exhibit superior performance. The better the pay, the better the performance. The compensation that is going to be provided to the employees should include better salary, perks, increments, bonus etc. Even though the remaining components like promotion are going to motivate the employees, but the basic motivator is better compensation.
- Retainment of their services over an extended period of time: –
Retainment of the services of an employee with an organization is the most difficult job of HR. So, the retainment of the employee’s service over a long period of time is possible only by providing them with better compensation