Compensation Paper

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Compensation packages are an important part of the business structure, employee recruitment, retention, motivation, performance, feedback and satisfaction. Compensation is typically among the first things potential employees consider when looking for employment. It is important, therefore, to give a lot of consideration to your business’s compensation structure. After all, for employees, compensation is the equivalent not to how they are paid but, ultimately, to how they are valued. When it comes to compiling an attractive compensation package, there are four (4) main parts. Those parts include base salary, allowances, incentives, and perquisites. In the compensation package under incentives should include career and social rewards such as job security, flexible hours and opportunity for growth, praise and recognition, task enjoyment and friendships. When it comes to salary in the compensation package it would attractive if the salary was higher then average or if it included a bonus when a specific performance was done by the employee. Performance measures should be as objective as possible, and formulas to calculate bonuses should be based on concrete, determinable numbers. Bonuses can show an employer appreciates the employees and ensures that good performance or special events are rewarded I also think that it is important for the employee to offer stock options. This gives the employee the right to own a part of the company and therefore, they will work hard so that their stock continues to rise. Other incentive that should be included in an attractive compensation package would be flex time, retirement programs, paid leave for personal and family, child care, and moving expenses. In my ideal compensation package, I would like to see that my employer has put thought, balance, and family values into the package. I think that a company’s compensation program should be easy for the employees to understand and easy for the employer to implement
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