Employee Compensation Programs

Employee Compensation Programs Name Institutional Affiliation Employee Compensation Programs Compensation is an amount of money that an employee is given by the employer for the labor provided to the organization. A compensation plan is developed by evaluating the quality and quantity of the work done by each employee. Furthermore, compensation can be done moneywise or in terms of benefits such as medical benefits. Labor unions also enact laws that affect the compensation plans made by an organization. There are laws such as the fair labor and standards act which has provisions concerning wages, salaries, overtime, and equal pay. There are several factors that influence one’s decision to apply for or accept the job. These include; the benefits, stability, working environment and money. The benefits are the perks enjoyed by an employee in the company (Martocchio, 2011). Most companies offer benefits such as health insurance. Job security is the amount of time that the employee can keep their job. Job seekers are generally enticed by job opportunities which have a longer duration of time. Most employees are attracted to companies which offer a higher salary. This means that such companies are financially stable. Compensation plans can have numerous effects on the success of an organization. An organization with a good compensation plan can attract top talent in the industry. Employees get motivated when they are given good compensation, as a result, they feel valued. This boosts the loyalty of employees to the organization. This means that there cannot be a huge employee turnover in the company. When employees are happy with their compensation packages this leads to increased productivity and profitability in the company (Martocchio, 2011). The organization also has to f...