What is the administration of compensation and what are its benefits?
Human capital has taken great importance for organizations, so they want to attract, retain and motivate talent to help them achieve goals. People require work motivation is the force that drives them to perform their work better and, therefore, have a better performance. Similarly, the contributor expects that effort is providing the company is rewarded him beyond a paycheck.
The management of compensation and advantage is one of the management tools that companies use for this purpose, which allows developing talent and helping to create a culture with high-performance orientation creating a positive impact on personal and working life your collaborators.
What are the tradeoffs?
The employees of a company contribute their knowledge and effort to the company in exchange for compensation, but in modern management this term goes beyond the wage compensation. This includes providing incentives to staff motivation and are subordinate to the results of performance evaluations. Today there are many companies that include in their total compensation package to associate a wide range of benefits and compensation.
What is the compensation management?
The efficient management of compensation offered to employees must be central in organizational strategy, as it allows to develop your talent by measuring the investment made in each of them and return it by linking it with the achievement of objectives and results of the company.
An essential part of this methodology, the company must have formal programs and performance appraisal procedures, which should be clear and known to all staff. This is to implement a system to ensure fair and equitable compensation which would bring satisfaction to employees, improving the working environment of the organization and strengthening the team for a more productive enterprise.
The management of compensation and advantage and business benefits should be a fundamental part of human talent management and integrated into other processes of human talent and not treated as an isolated practice but as a link in the chain at the end of the day form the experience of the partner in the company.
Finding the balance between employee satisfaction generated by the compensation obtained and the competitiveness of the company is the main objective of the compensation administrator since it must be clear that their primary function is to provide the highest level of satisfaction to the needs of seeking talent for the company a cost / benefit ratio optimal. When the employee is not satisfied with the compensation system it tends to look less attractive the position held, resulting rotation absenteeism and lower productivity.
Offsets have the following objectives:
* reward performance of employees for their own satisfaction and that of the organization.
*hold the company ambitious in the labor market.
*Attracting and retaining talent.
* increment effectiveness and productivity of the company.
* trigger the future performance of the worker.
Promoting organizational values such as quality, teamwork, innovation and achievement of goals.
Although varies greatly from company to company, so we can usually name the most common types of compensation that your organization can offer its employees:
* Monetary: In this category are considered additional benefits to those required by law such as a Christmas bonus of 30 days.
* Bonds: Additional economic benefit to the salary usually granted to meet targets set by the job description.
* non-economic benefits such as childcare, medical assistance, room service, transportation, among others.
* Relief: An example of this type of incentive are the medical insurance for the employee and in some cases to the immediate family.
* Recreation: Under this concept benefits those who seek to foster the well-being of the person giving the opportunity to rest as recreational parks or provide additional vacation days are included.
* Training / education: To provide an opportunity to increase their knowledge is a great incentive for the worker as well as the opportunity to prepare more can mean an advance in their career and development.
Advantages and benefits of management compensation.
Have a compensation plan in your company brings advantages for both the employee and the company, which include the following:
* Increased job satisfaction and employee motivation. * Improving the professional performance of the team.
* Develop staff and increases individual welfare * Reduce staff turnover.
* Improving social relations among employees.
* It facilitates the attraction and retention of talent.
* Increases the feeling of safety.
* It provides an incentive to achieve and exceed goals.
* Improve employee relationship and loyalty with the company.
* Increase productivity.
* Sets up the name and reputation of the company to meet the interest on their human talent.
When individual performance is aligned to organizational performance great things can happen in the workplace. Keeping motivated to your team is completely related to the productivity of your company which can achieve to increase your comfort, provide a suitable working environment and encourage their continued development through incentives and compensation are important tasks that the area of human talent You must not lose sight.
By uniting two powerful forces such as the quality performance of your human capital and organizational strategy will achieve a more productive company that achieves its objectives and business goals.
The software SuccessFactors human capital through its Compensation Management module allows you to help companies streamline the compensation process and implement strategies that motivate and reward your team according to their performance.