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Why compensation management is important
Compensation management is one of the prime key issues for the human resource managers. Updating, changing & maintaining compensation is tough for new managers & so, a system is what is required.
So, why compensation management is a challenging job & why a system is needed, let’s find it out:-
Importance of compensation management
Boosting motivation
Employees go through all the hard-work & stress at job place to be compensated with a decent income. If this compensation in terms of salary, incentives bonus & other fringe benefits can be distributed well with fairness, employees get motivated, otherwise it de-motivates them in workplace.
Maintaining equity
Salary could be different for employees at different levels. Sometimes it differs even among the people in the same post. But there should be a justification to the HR people for that. There might be differences in experiences or academic qualifications for the change in salary & it has to be recorded & maintained by HR.
Including updates
Salary and other benefits keep changing each year. Based on the performance of employees, it is either increased or decreased or kept stagnant. It is crucial to carry out this with zero error because it’s financial issue & employees have the right to see the details of this change with proper explanation.
Managing the cuts
The compensation package has few cuts as well. It includes tax & some other few charges for which there is difference between gross & net salary. This cut has to be exercised & recorded with due diligence so that no discrepancy occurs for any employee or for group of employees with same salary.
To see how compensation management can be effective & easy, Click here
So, managing compensation or exercising the payroll activity is something that is challenging & rewarding too because when all these are performed well with no error, satisfaction from employees goes up.
If you need more information regarding managing compensation management & payroll system, we will be more than happy to welcome you.
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www.beetechnologybd.com
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