Compensation and Benefits

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Executive Summary:
The purpose of this paper is to highlight the best practices followed by HRM and to acknowledge the importance of compensation and benefit strategies used in organizations all around the world. Compensation and Benefits are used by different organisations globally to attract, motivate and retain their employees. This paper contains a case studies, summary and analysis of academic journals and books to understand the latest trends in compensation and benefits field. The three primary components which are used in designing a strategic compensation plan are listed. During the course of the paper, it discusses how the compensation and benefit strategies can be tailor-made for the different generations joining the workforce, and how these strategies are used in the organisations. Further, this paper highlights four different case studies giving the reader insight on the different ways compensation and benefits schemes were used by organisations in different scenarios. In this present day circumstances, with employees having access to all kinds of information regarding salaries, wages and benefits of other companies it is extremely important for any organization to have a fair and an attractive compensation system in place.

Introduction:
Employees are the most valuable assets of any organization. The main purpose of human resource management (HRM) is to manage the development and performance of people employed in an organization. Some of the significant tasks of HRM comprise of attracting and retaining employees with the right skills and abilities, match people to the right positions within an organization and to align employee’s goals and objectives with that of the organizations. All these key tasks are directly or indirectly affected by compensation and benefits plan which the human resource management decides.
Compensation and benefits redefines value and success in any workplace. An efficient compensation and benefits strategy is seen as an



References: * Bonic, Davies, Brood, etall, (2011). Mercer’s 2011 EMEA Compensation and Benefits Conference * Compensation, Retirement and Benefits Trends Report, 2012/2013 * Ellig, B. R. (2007). Fashioning an Employee Benefits Philosophy Statement. Benefits & Compensation Digest, 44(10), 44-48. * Employee Benefits in the United States--March 2012. (2012). Medical Benefits, 29(23), 4-5. * Heshizer, B. (1994). The Impact of Flexible Benefits Plans on Job Satisfaction, Organizational Commitment and Turnover Intentions. Benefits Quarterly, 10(4), 84-90. * Lazear, E. P. (1990). Pensions and deferred benefits as strategic compensation. Industrial Relations, 29(2), 263. * MELLO, J. A. (2011). COMPENSATION. STRATEGIC MANAGEMENT OF HUMAN RESOURCES (3rd ed., pp. 481-515). * McConnell, J. (2003). The Tangible Rewards of Work: Pay and Benefits. Hunting Heads, 223. * O 'Connell, K. (2007). The Importance of Strategically Designed Compensation Plans. Benefits & Compensation Digest, 44(9), 20-25. * Poster, C., & Scannella, J. (2001). Total Rewards in an iDeal World. Benefits Quarterly, 17(3), 23-28. * Rhines, G. M., & Douglass, W. (2012). Highly Compensated Executives. Journal of Accountancy, 214(4), 50-55. * Schneider, B., & Paul, K. B. (2011). IN THE COMPANY WE TRUST. HR Magazine, 56(1), 40-43. * SHRM, (2011) * Stabile, S. J. (2002). ENRON, GLOBAL CROSSING, AND BEYOND: IMPLICATIONS FOR WORKERS. St. John 's Law Review, 76(4), 815. * Tobias, K. (1991). BENEFITS/COMPENSATION. Journal Of Accountancy, 172(4), 129-132. * Wojcik, J. (2009). Rising to the benefits challenge. Business Insurance, 43(43), 9-12.

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