Compensation & Benefits a challenge for an organization

The performance of an organization largely depends on the performance of their employees. To upkeep the staff in long run their perks and salaries must be kept aligned with competitors . It is commonly believed that job satisfaction will result proved performance. 

Compensation is general term refers " Something given or received as an equivalent to service or work provided". As per Mcnamara (2006) in an organization, compensation includes wages / salary structures, merit based programs, bonuses, commission based progarms and other benefits.

The other benefits includes retirement plans, health insurance covers, vacation pay etc.

Compensation is primary motivation factor for any kind of employee who works for an organization. People look for jobs not only to show their talents but also to compensate in terms of salary and other fringe benefits.

Employee benefits focuses on providing financial security for the employee as well as their family members. Google company being one of the great places to work offers number of benefits for their employees including vacation and paid time off, employee discount, Gym membership, pet friendly workplace, company car etc.

A company like google can afford for such benefits for their employees based on their income levels and profitability. But in terms of other growing companies it's a huge challenge for every sectors of organizations in the world.In twenty first century money is treated as most intrinsic motivation factor since it provides the carrot that most people want. (Armstrong, 2014)

Although different people have different kinds of needs and wants in an organization the monetary benefit which they get from the organization by way of incentives and performance bonuses will boost their satisfaction and productivity.

As per Armstrong (2014) to overcome the job dissatisfaction which creates due to repetitive works in workplace organizations tend to design work which will boost productivity. In terms of employees side they benefits in non monetary ways such as job satisfaction and feeling of personal accomplishment. 

By looking into above we can conclude that offering compensation and benefits in attractive manner will upkeep the valuable human resource in any kind of organization and attract more diversed, talented people for the organization which will be a financial cost for the organization in return and will be a challenge for the 21st century.

References

Mcnamara, C. (2008). Employee benefits and compensation: Basics about employee motivation : Nuts and bolts guide  to leadership and supervision in business. Minnesota: Authenticity consulting LLC.

Armstrong, M (2014), Armstrong's Handbook on Human Resource Management Practice, 13th edition. pg 181-182

Armstrong, M (2014), Armstrong's Handbook on Human Resource Management Practice, 13th edition. pg 136 and 145