It helps give benefits to employees based on their performance and actions and brings the best out the employees at workplace. Unless you’re an amazing guesser, it’s important to do a little recon when it comes to determining competitive pay rates. Both as a recruiter and as a career coach, I have heard women downplay the importance of compensation. HRsoft is the industry leader for compensation planning and total rewards software. Why is Compensation Management so important? Compensation is the employer's feedback for an employee's work. Money is flat and meant to be piled up. Pays for standard job duties, skills and results. Compensation and Benefits: Definition and Importance Published on July 25, 2015 July 25, 2015 • 17 Likes • 0 Comments. Compensation can include monetary and non-monetary components. Our cloud based SaaS solutions combine best of breed features with an intuitive, easy-to-use interface that simplifies and automates the entire compensation process helping companies save time and their best employees. Gudergan, & Lings, 2010). - Scottish Proverb. Compensation and benefits refers to the compensation/salary and other monetary and non-monetary benefits passed on by a firm to its employees. By doing this, you are creating a message with a purpose. 10 Key Elements of a Total Compensation Package Published on January 17, ... but it might also not be that the most important thing. Compensation and benefits is an important aspect of HRM as it helps to keep the workforce motivated. strategic HR inc. offers assistance with a variety of Benefits and Compensation needs including total compensation statements. Attracting competent job applicants is an important task for organizations (Backhaus, 2004). Identifies target market position for competitive pay levels and articulates the company s commitment to motivating, and rewarding employee contribution and performance through the various elements of the company s total pay system. Compensation management, also known as wage and salary administration, remuneration management, or reward management, is concerned with designing and implementing total compensation package. Highlight benefits or programs that are often forgotten by many employees. Existence of the total compensation . Base Pay. By implementing a regular system for gathering and distributing this information, your organization can better demonstrate the … Importance of Compensation in the Workplace. This study was conducted to determine the importance of compensation and benefits on performance of public water utilities in Tanzania. An overall brand name plays a major role in influencing a potential recruit to pursue a job (Kim, York, & Lim, 2011). The purpose of compensation management is to make the most of company dollars in a way that rewards employees for their work. Compensation management makes a company vigilant. Communicating total rewards and compensation makes good business sense when it comes to outlining the full extent of your company’s value. Competitive intelligence is your best friend when it comes to determining compensation. Be available for questions from employees or hold a meeting to address these questions. Compensation Philosophy.