Question

Find a business scholarly article relating to the topic of compensation and/or benefits, and prepare a two to three page summary in APA format. The paper should include a summary of the author's main points, along with your perspective on the subject matter.

Answer 1

TITLE

Compensation And Benefits

ABSTRACT

Compensation includes wages or salary programs and structures which the company pays for its employees towards the work done by them. The most common form of compensation are wages, salaries and tips. where as the benefits typically refers to the additional activities which the employees receives from the organisation. Benefits are increasingly expensive for the businesses to provide to employees, so the range and options of benefits are changing rapidly to include flexible benefits plans. Now a days just providing a compensation to the employees is not just enough. Every person is now expect more and more benefits from the organisation.

THE MAIN BODY

Compensation is a sub-discipline of human resources, focused on employee compensation and benefits policy making. compensation and benefits are the tangible items. Whereas rewards are intangible such as recognition, work life and development.

Types of compensation:

• Direct compensation: is a part of remuneration provided to employ in exchange for their labour and service.
• Indirect compensation: this is provided to the employees benefit but is not given directly to the employee.

Objectives of compensation Management:  

• it creates a positive impact on the employee
• it always raises morale in the employee
• bring efficiency and effectiveness
• it bring cooperation among all the employees
• a sound compensation bring peace in the organisation
• a sound compensation system is a hallmark of the organisation.
• it looks into the happy customers.

Employee benefits:

benefits that are provided in kind to the employees. This can also be called as fringe benefits, perquisites or perks.

Types of employee benefits:

• medical insurance: this covers the costs of the physician and surgeon fees, with room expense, medication. employers usually pay all or a part of the premium for the employee medical insurance. at the same time employees pay a percentage of the monthly costs.
• Disability insurance: this replaces all or a part of the income that is lost when a worker is unable to perform their job because of the illness or injury.This benefit is not commonly offered by the organisations.
• Life insurance: this protects the family in case you die. Benefits are paid all at once to the beneficiary of the policy.
• Retirement benefits: this is the fund that is set aside to provide people with an income or pension when they end their careers.
• fringe benefits: this is a kind of non-cash payments given to the employees mainly to attract and to retain.

Objectives of employee benefits:

• it maintains the company objectives and helps in increasing productivity
• it provides and maintain reasonable work opportunities
• to encourage safety and prevention of injury
• to assist the employee to return to their normal work environment in an efficient manner.
• to return the employees to a work level as close as possible to pre-injury earnings and productivity

Basic components of employee compensation and benefits:

1. Guaranteed pay: a fixed pay or cash reward paid by the employer to the employee for the work done by him towards the organisation. The most common form of guaranteed pay is base pay. This also includes housing allowance, differentials and premiums.
2. Variable pay: a non-fixed monetary reward paid by an employer to an employee that is contingent on discretion, performance, or results achieved. the most common form of variable pay are bonuses and incentives.
3. Benefits: programs an employer uses to supplement employees compensation such as paid time off, medical insurance company car and more. many of the employees in the organisation are expecting for a high benefits.
4. Equity based compensation: the stock programs are provided to the employee by the employer. In this the employer provides a actual or perceived ownership in the company that ties up an employees compensation to the long-term success of the company.

SUMMARY:

Employee compensation and benefits are the main motives that the employees will expect from the organisation. If we want our organisation to be efficient and effective then proper compensation` system should be implemented which is competitive to our competitors at the same time better benefits also should be provided to the employee. According to the surveys it is observed that many of the employees are now a days are getting attracted towards the benefits that the organisation is providing.