Question

1)

What is the relationship between compensation and employee retention? Do employees stay with organizations based on salary? Do they leave organizations because of compensation factors? How do benefits impact retention? Use the articles and resources provided to support your ideas.

Answer 1

Employees always need to get paid for the job they do.It is a matter of their self-esteem and means of living.The relationship between compensation and employee retention depends on the type of job and industry people are working.Compensation includes salary and other added benefits.These added benefits encourages employees to work and become more committed to the job they do.Adding health insurance and other medical cares in compensation will attract employees much.Also,the company should focus on giving raises ,bonus and awards time to time to cheer up the employees.Giving rewards for their excellent performance would increase their enthusiasm towards work.Most people leave their job because of weak compensation policies.Salary is an important factor to choose the job ,that is; people choose the jobs they will primarily focused on the salary they get .But after working for about one year, most of the people would find the job less intresting and they will start concentrating on compensation and rewards that they will get if they perform well.So compensation plays significant role after an employee starts to work.Promotion and other oppurtunities affects employee retention.Bonuses encourage employees to set an individual goal and setting this individual goal will help in aligning with organisational goals.This will increase the efficiency and in turn the profitability of the organisation.Anyway,appreciation is the key to retention ,so giving more recognition and support to employees will make a very good impact on employee retention.