Disadvantages Of Compensation Management

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The greater part of us would have heard the term "compensation" with regards to getting paid for the work that we do. The work can be as a feature of full time engagement or part time in nature. What is common to them is that the "reward" that we get for exhausting our energy not to mention the time is that we are compensated for it. From the perspective of the employer, the money that they pay to the employees in return for the work that they do is something that they have to get ready for in a detailed and methodical way. Unless the employer and the employer are in broad agreement (We utilize the term wide assertion as much of the time, noteworthy contrasts in discernment about the employee’s worth exist between the two sides), the net…show more content…
The part of how skewed compensation management leads to higher attrition is discussed as well. This angle is critical as studies have demonstrated that a greater part of the employees who quit companies give inadequate or skewed compensation as the reason for their exit. Hence, compensation management is something that companies must consider important in the event that they are to achieve a competitive advantage in the market for…show more content…
It is often the case that employers compare the jobs across the industry and arrive at a particular compensation after taking into account the specific needs of their firm and in this respect salary surveys and research results done by market research firms as to how much different companies in the same industry are paying for similar roles. The components of compensation that have been discussed above are the base requirements for any HR Manager who is in charge of fixing the compensation for potential employees. There are other variables as well that would be discussed in subsequent articles. This article has introduced several concepts around the topic of components of compensation and these concepts are crucial for HR professionals as well as those aspiring management professionals who want to make a career in the corporate world. Before concluding this article, it needs to be remembered that exit interviews have shown that over 70% of employees who quit their jobs do so because they are dissatisfied with the compensation that they are getting. Hence, all HR professionals and managers must take this aspect into account when they determine the compensation to be paid to
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