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Total Compensation Methods Paper

Submitted by Billyboy8 on August 3, 2008

Category: Miscellaneous
Words: 1855 | Pages: 8
Views: 183
Popularity Rank: 67,047
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Total Compensation Methods Paper
The purpose of this paper is to provide an analytical overview of compensation strategies within organizations. First, an analysis of the impact of various compensation methods and benefit programs on employees and organizations will be discussed followed by how salary and benefit administration strategies relate to organizational culture and performance. What are compensation and benefit strategies? Compensation and benefit strategies are ways that organizations can use pay and benefits to recognize and reward employees’ contributions to the organization’s success. (Noe, Hollenbeck, Gerhart, and Wright, 2004) Some examples are wage and salary administration, incentive pay, insurance, vacation leave administration, retirement plans, profit sharing, and stock plans. In order to gain a better understanding of these programs and how they impact organizations, a comprehensive look at compensation methods and benefit programs is necessary.
A company has many options when it comes to compensation methods. Compensation not only affects the company, but also the employee and future employees. Some compensation packages that a company offers are required by law and others are a benefit to employees. This paper will look at both types of compensation. In addition to compensation and pay, one of the biggest compensation packages a company can offer is employee benefits. Employee benefits are compensation in forms other than cash. (Noe, Hollenbeck, Gerhart, and Wright, 2004) Employee benefits include, but are not limited to, medical insurance, dental insurance, vision insurance, time off for illness, paid time off, retirement plans, childcare, and tuition reimbursement. Employee benefits not only help with family and personal needs, they also help retain and motivate employees. Furthermore, strong benefit packages can attract new employees that could be beneficial in the company’s future success.
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