This discipline covers the various forms of direct compensation i.e. employee’s pay including variable pay, short and long term incentives, company stock awards, as well as promotions and pay increases. It also deals with indirect compensation such as paid leave, insurance, retirement income and various employee services, commonly referred to as benefits that employers use to attract, recognize, retain and motivate employees to contribute to the organization’s strategic objectives.
Today’s competitive business environment demands that companies find better, more efficient ways to manage their significant employee benefits investment. At the same time, results expected from these benefit plans are increasing.
The Compensation and Reward services includes
- Designing and administering compensation philosophy
- Strategy and systems
- Compensation benchmarking
- Executive compensation and other competency or function based compensation practices.
- Defined benefit, defined contribution
- Review of existing compensation and benefit policies ( if in force)
- Having a proper survey and research of market data so as to help management draw meaningful insights with a view, on, the impact on profitability.
- Bring about a standard norm across all pay elements (Be it variable, fixed and non- monetary) and suggest an appropriate reward strategy.
A compensation strategy defines how an organization views and manages employee pay and benefits. An effective compensation strategy serves to motivate current employees and attract new ones.