Compensation is the system by which employees are paid for work. Here is a brief bibliographic review of the term:
Compensation is much more than organizing a bureaucratic system to get pay to workers and employees. At present, companies aware that human resources are the most important asset of the entire organization, have to constantly strive to implement and maintain a remuneration system that meets the triple imperative of being internally equitable, externally competitive and motivating. (Puchol, Luis. Direction and management of human resources, Ediciones Díaz de Santos, 2007)
Compensation includes all forms of payment and rewards that employees receive for the performance of their jobs. direct compensation includes wages and salaries, incentives, bonuses and commissions of employees. Indirect compensation includes the many benefits offered by companies, and non-financial compensation includes employee recognition programs, rewarding positions, organizational support, the work environment, and flexible hours to accommodate personal needs. (Bohlander, George W. and Snell, Scott. Human Resource Management, Cengage Learning Editors, 2008)
Employee compensation refers to all forms of payments or rewards intended for employees and derived from their employment, and they have two basic components. on the one hand, direct monetary payments, in the form of wages, salaries, incentives, bonuses and commissions and, on the other, indirect payments in the form of economic benefits, with insurance and vacations paid by the employer. In turn, there are two essential ways to make direct monetary payments to employees: on time and on results. For example, workers usually receive hourly or daily wages, this is known as a day. the second option is to pay for compliance. Piecework is an example;This links compensation directly to the volume of production that the worker produces and is very popular as an incentive payment scheme. (Dessler, Gary, Personnel Management, Pearson Education, 2001)
The total compensation employees receive for the work they do includes a mix of monetary and non-monetary compensation. Non-monetary compensation includes many forms of social and psychological rewards: recognition and respect of others and opportunities for personal development. The monetary compensation includes direct payments such as salaries, bonuses and bonuses, as well as benefits such as coverage of the costs of insurance plans. (Hellriegel, Don et al. (Administration: A Competency-Based Approach, Cengage Learning Editors, 2005)
Compensation is the total of payments that are provided to employees in exchange for their services. The general purposes of providing compensation are to attract, retain, and motivate employees. The following figure shows the elements of a total compensation program. (Mondy, R. Wayne and Noe, Robert M., Human Resource Management, Pearson Education, 2005)
