Compensation and Benefit System Essay Example | Topics and Well Written Essays - 1750 words

Compensation and Benefit System - Essay Example With the passage of time, more workers are comparing one business to another not just with respect to salary but also benefits. A number of individuals, indeed, are more concerned about the benefits they get instead of wages because of family requirements or aspects of their standard of living, such as â€Å"health care coverage and financial planning† (World at Work, 2007). If someone has a company, his employee compensation and benefits package may simply be the basis someone does or does not agree to the job offer. To make the company aggressive and create a center of attention for very skilled applicants, one has to present an attractive benefits package. The business should make this a significant element of the planning process, if the management would like to appoint and retain top workers. In the present day, employees are not ready to work merely for the money; they look forward to something more than cash. This ‘something more than cash’ is known as empl oyee benefits or fringe benefits. Employee benefits are non-monetary type of compensation provided besides cash earnings to improve employees’ lives - both personal and professional. Employee benefits are not based on performance. Employees get benefits irrespective of their performances. â€Å"Employee benefits as a whole have no direct affect on employee performance† (Dixon et al, 2009); however, insufficient benefits do contribute to a decreasing satisfaction level along with increasing absence and turnover in workers. Therefore, the employers would have to plan their benefit package vigilantly. All individuals have different kinds of requirements. A few would like have cash so they work for the corporation that offers them higher salary package. Some individuals give importance to success more than cash; they would join the companies that offer better opportunities of promotion, learning, development, and personal growth. A compensation plan that goes well with employees’ requirements is more expected to encourage them to work in the way their company wants them to. The Group compensation structure includes different types of compensation. This guarantees proportionate compensation, in this manner reinforcing and supporting short as well as long-term goal setting and attainment. Executive Management’s fixed income must be individual and supported on the content and responsibility of the job, the person’s capability along with experience with respect to the job held, in addition to the region in which the position is based. As well as a fixed income, Executive Management as well has a variable income componen