Components of Compensation Package

We already know a lot about compensation management and components of total compensation package. Today we will learn  about the essential components to design a well formed compensation systems for any organization.

As Compensation strategy is a part of business strategy, with the change  of organizational structures and business need, the compensation systems have also been changing with time. From the bureaucratic organizations to the participative organizations, employees have started asking for their rights and appropriate compensations. The higher education standards and higher skills required for the jobs have made the organizations provide competitive compensations to their employees. That’s why an ideal compensation system are designed keeping in minds the strategic goals and business objectives. To design a well formulated compensation system following components are used: Continue reading