How many times do we hear the word compensation? many a times right!!
everyone have a rough idea about the term however,
compensation is basically most attractive and desirable thing which employee seek , however employee will get the compensation only if the employer will be willing to offer the same in exchange for the services offered by the employee .
There are two types of compensation offered by the employer
- Financial which include your basic salary,bonus paid,loans and advances which are paid by the employer in terms of hard cash.
- Non-Financial are nothing but includes recognition ,opportunity for growth in the organization,good organizational culture and also policies.
however compensation are given by the employer on two basis namely willingness to pay and ability to pay.willingness of the employer depends upon the policy strategy and ethics of the organization however on other hand the ability to pay depends on the growth of the market shares and profitability of the organization.