Question

List all five components of financial compensation plans, and briefly discuss each component’s objectives.

Answer 1

It is the responsibility of leadership to value their resources properly with compensation package and motivate them for their performances and day to day work . Some of the major components of compensation packages are

• Organization goals :- This refers to the major goals and it's objectives and how it has to be reflected to th employees salary .Make sure that the employees are properly rewarded based on their performance quality.
• Employee communciation:- There should be a realistic communication in place which establish a connection between employer and employees about their compensation. Employers should ensure that their compensation values are not lower than the market as it may results in employee dissatisfaction.
• Rewards and recognition:-Always ensure that the project recognition are differentiated while compared with individual recognition.
• Acknowledgements:- Timely based acknowledgement helps a lot in an organization to show their values to the work done by the employees . Leadership mails and acknowledgement through appreciation helps a lot.
• Simple measures :- performance evaluation parameters should be simple and employees should be well aware of those