Compensation and Benefits

Key Takeaways

• A compensation package is an important part of the overall strategic HRM plan, since much of the company budget is for employee compensation.
• A compensation package can include salary, bonuses, health-care plans, and a variety of other types of compensation.
• The goals of compensation are to attract people to work for your organization and to retain people who are already working in the organization.
• Compensation is also used to motivate employees to work at their peak performance and improve morale.
• Employees who are fairly compensated tend to provide better customer service, which can result in organizational growth and development.