Why Is Fair Employee Compensation Crucial for Morale and Retention?

Why is Compensation Needed for Employees, and What Are the Benefits?

Proper compensation is essential for employees as it recognizes their contributions to the organization and motivates them to perform at their best. Fair and competitive pay not only attracts top talent but also retains existing employees, reducing turnover rates. Additionally, compensation packages often include benefits such as healthcare coverage, retirement plans, and paid time off, enhancing the overall job satisfaction and well-being of employees. Investing in employee compensation demonstrates a company's commitment to valuing its workforce and can lead to improved morale and productivity within the organization.

Compensation for Employee Accidents: Obligations and Coverage

This is related to compensation in the case of an employee meeting with an accident during the course of employment. If the accident results in partial or total disability or death, then based on the employee's earning capacity, age, the affected body part, or inability to earn a livelihood, the employer is obligated to pay compensation to the employee under the Workmen's Compensation Act of 1923. The Deputy Commissioner of Labour is the competent authority under this act.

If the employee's salary is Rs. 15,000 or less and they are covered under the ESI Act, then the ESI will be responsible for and take care of the compensation, and the employer will not need to pay anything. If not, the employer is responsible. Sometimes, the compensation amount can be substantial, especially in cases of employee death or when multiple employees are affected. In such situations, some companies may even face closure, as seen in the Union Carbide case. To mitigate such major issues, employers typically cover all employees under Workmen's Compensation policies provided by insurers like New India Assurance.

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Kamesh

Clarifying Your Industry and Purpose

What do you do, and in which industry are you working? Why are you seeking answers in a very general way? The more specific the question, the more precise the answer will be.

I am an MBA student currently working on my final year project titled "Effectiveness of Incentive Programs and Other Benefits." I am in need of some reference materials in order to prepare the questionnaire. Please help.

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Lekshmi Nair