Compensation and Benefits in HRM — StartupHR Toolkit

Employee Compensation and Benefits in HRM is referring to salary and non-monetary rewards. Compensation is an important aspect for every HRM. It helps keep employees motivated Also, it is a primary tool for every HR manager to take out latent of the employees in their work.

Compensation is closely connected to performance appraisal, who performance is better to get bigger pay. Smart managers know who needs rewards and compensation. and also employee’s shoulders get to avoid the benefits portion.

Compensation plays a significant role in every management to boost productivity, performance, and effectiveness of the employees. Benefits include indirect pay. This can be wages, incentives, gifts, insurance, bonus, lunch/dinner, or any useful things offered to employees.

According to the HR-based reports — 82% of Managers believe compensation is necessary. Some employees also work according to the reward. Organizations give extra to get extra. Strategy is as simple as you may think.

In this article, we will provide you with a full guide about compensation and Employee benefits in HRM.

Types of Compensation

1. Direct Compensation

Monetary compensation include

1. Bonus

2. Employee rewards and recognition,

3. commission on sales,

4. Sharing of profits,

5. Paying for working overtime etc.

2. Indirect Compensation

Non Monetary forms of compensation

1. Internet reimbursement

2. Mobile phone reimbursement,

3. Public recognition

4. Transfer facility

5. Promotion opportunities

6. Paid house for stay by the company, as well as

7. Company car for traveling office.

8. Free scholarship for online courses.