Compensation and Benefits
BUS303 Human Resources
There are many people that would choose their life career around the benefits and compensation they may receive. Compensation is known as human resources function that deals with every type of rewards that one may receive in return for performing organizational tasks.()1 Do to these rewards such as compensations; turn-over can be affected in the workforce. If an employee did not feel they valued at the workplace they may leave the job. Some may argue that smaller firm have worst turnover than larger firms. This can be due to the fact that larger firms can offer better benefits to their employees, which smaller firms cannot afford.
There are four different forms of rewards offered by the employers to their employees. These rewards are known as guaranteed pay-salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed, variable pay- is employee compensation that changes as compared to salary which is paid in equal proportions throughout the year, benefits- are a form of compensation paid by employers to employees over and above the amount of pay specified as a base salary or hourly rate of pay, and equity based compensation. Employees are not willing to work solitary for the cash alone, they expect more. Some companies can offer more benefits known to many as fringe benefits, Fringe benefits are compensations made to an employee beyond the regular benefit of being paid for their work. Some fringe benefits are fairly standard, such as offering a few days of sick time or paid vacation time. Employee benefits are non-financial form of compensation offered in addition to cash salary to enrich workers’ lives. Typical benefits are known as vacations, insurance of different kind, and services like childcare Employee benefits have no direct affect on employee performance, however, insufficient benefits do contribute to...
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