Objectives of Compensation and Benefits- Compensation and Benefits is more than just the means to attract and retain talented employees. In today’s competitive labor market, organizations need to fully leverage their human capital to sustain a competitive position. This requires integrating employee processes, information and programs with organizational processes and strategies to achieve optimal organizational results.
Virginia Tech is committed to the continued success of the Commonwealth of Virginia’s Compensation Plan. The plan enhances the university’s ability to staff core operations and new initiatives, support employee development, recruit and retain highly qualified employees and reward them based on their performance and capabilities, and support the achievement of organizational goals.
- Better decision-making: Give executives an instant, global view of your organisation’s compensation structure, helping you make the right decisions based on accurate data.
- Balance your budget: Ensure you meet your financial obligations with better salary planning, tight budget control, and appropriate merit increases.
- Drive high performance: Create a management strategy that links performance to reward, engaging, and motivating staff at all levels.
- Find and keep the best: Use the latest market data and research to compare compensation across jobs, industries and locations. Benchmark your compensation to retain talented people and attract the best external talent.
- Be fair and transparent: Create consistency across teams and skill areas, with review processes that avoid internal or external imbalances and minimise your retention risk.
It serves to not only motivate and retain employees who are already part of the organization, but also helps to attract good employees to the organization. A good Compensation Management System should be developed in line with strategic goals and business objectives, and fulfill the following functions:
- It should be easily understood by employees and equitable across the organization
- It should not only play an integral part in motivating employees but also aim to create a healthy competition among them
- It should balance internal as well as external equity, thus enabling employee retention and conversely reducing employee attrition
- It should help companies to achieve a competitive edge in the industry, thus attracting new talent
- It should be designed to reward employees in alignment with their performance levels, i.e. the better the performance, the higher the reward
- It should be clearly linked with other human resource activities within the organization such as recruiting, learning, performance management, and so on.
To create robust compensation systems and organization must be aware of the following factors:
- External factors such as laws, government regulations, and market data for salaries
- Internal factors such as complete employee information, job analyses, job descriptions and job evaluations
Apply for Compensation and Benefits Certification Now!!
http://www.vskills.in/certification/Certified-Compensation-and-Benefits-Manager
