Writing a Total Compensation Methods Paper

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Introduction

Increasing rate of global competition has posed a serious challenge in front of the organizations as well as the human resource specialists. They need to do something creative and attractive for the employees (Noe, Hollenbeck, Gerhert & Wright, 2003). In order to manage the workforce within the organization and enhance their morale, strategies of compensation and benefits are very essential. There are various kinds of total compensation method and benefit programs according to the cultural environment of the business organization (Hunt, 2005).

Total Compensation Methods

There are various types of compensation methods that are used by the business organizations to motive their employees to work with zeal and performance (Donald, Caruth & Handlogten, 2002). Some methods of compensation help the organization to cope up with changes such as market, services and products, competition, etc. (Compensation and Performance Management, 2006). Before implementing any compensation method the organization should evaluate all the aspects such as job description, job evaluation, pay structures, policies and rules of the company, etc. (Halloran & Jack, 1998). Some important compensation methods are Basic pay, Commission, Overtime pay, Bonus and profit sharing, Stock Options, Accommodation and various Allowance and Health and Insurance benefits (Fisher, Shaw & Schoenfeldt, 2004).

There is a direct relationship between a compensation structure and motivation and performance of the employees (Donald, Caruth & Handlogten, 2002). A sound wage and compensation structure includes all these aspect as per the job description and performance of the employees (Hunt, 2005). Variety of monetary and non monetary incentives should also be there, which comprises variety of discounts and gifts vouchers, health policies, accommodations, occasionally and performance bonuses, etc. A company always assesses the performance of the employees according to their pay structure and other benefit programs (Noe, Hollenbeck, ...