Essay on Compensation & Benefits

Words: 6147
Pages: 25


Compensation and Benefits in the Twenty-first Century


Team platinum will explore compensation and benefits in the 21st century. Any review of total compensation must include the crucial areas of health and retirement benefits and financial compensation, as well as discuss the implications of pivotal changes in the market and demographics which impact organizations and overall performance management issues. There are several different compensation and benefit strategies that can be combined in innovative ways to meet the needs of the both the organization and the diverse needs of the employees. The proper administration of a total compensation and benefits package is a
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The textbook defines it as “compensation linked directly to an individual, team, or organizational performance” (Mathis & Jackson, 2008, p. 361). Bonuses and incentive programs are the most common types of variable pay offered to employees. “Variable pay is an attempt to provide tangible rewards to employees for performance beyond normal expectations. Variable pay is sometimes referred to incentives. There are many different types of incentives and some of them include: profit sharing, monetary incentives, bonuses, stock options, commissions, praise, and recognition and awards (Mathis & Jackson, 2008). Again, Salary Negotiation Tips for Professionals, points out that employees can also negotiate, with limits, variable pay. Employees must ensure the form of variable pay focuses on their individual performance and not necessarily those of the overall performance of the organization. The employee is presenting themselves as someone who produces results and the variable pay must match those results. Sometimes these types of variable pay come in the forms of signing bonuses. This should not be mentioned when negotiating unless the employee has documentation about the organization offering one or the employer brings it up. When in negotiations, employees must keep in mind their own worth or value (Krannich& Krannich, 2005). Due to the fact that many companies usually want to keep the good performers, many will