Dear Friends,
Welcome to Something More!
The Importance of Compensation and Benefits Policy
Compensating an employee for their services in any organization is not as simple and straightforward as it seems. In fact, the Compensation and Benefits policy reflects the culture of the organization. It represents an exchange of value and plays a pivotal role in shaping the culture and promoting its values. Therefore, the core values of the organization must be reflected in the compensation and benefits strategy. This approach aids in talent retention, enhances the employer brand, and increases the market value of the products/services the organization produces.
Designing a Robust Compensation and Benefits Policy
The Compensation and Benefits policy is not a mere copy-and-paste exercise. It's more complex than it appears. Since it is HR's primary responsibility to establish a robust Compensation and Benefits policy, HR needs to be realistic about what the organization can afford while designing the policy. Among other things, you need to be aware of what's required by law, understand what your competitors are offering, and design unique benefits that set you apart. Remember, benefits are a part of an employee's total compensation. Think creatively, and consider the small things that could have a significant impact. It's HR's job to help connect these dots. Creating a desirable mix of direct and indirect compensation options and benefits can help HR create a competitive edge and achieve organizational goals.
Addressing Common Compensation Issues
HR should be cognizant of common compensation issues that need to be addressed, which may include internal equity, external equity, perceived equity, and geographical differentials.
Adapting to a Multi-Generational Workforce
Since there is a mix of generations working together in organizations currently, the Compensation and Benefits policy needs a fresh perspective, keeping in mind the priorities of different generation employees. Overall, it seems to be shifting from direct monetary gain to an improved lifestyle and psychological safety for the new generation workforce. Research and surveys indicate that while older generation employees prefer more cash in hand and health facilities, including pension plans, the new generation workforce prefers flexible working, work-life balance, paid time off, parental leave, outbound trainings, and birthday/anniversary celebrations over direct cash salary. Therefore, understanding the different types of compensation is crucial to creating an attractive compensation package; otherwise, HR could potentially miss out on improving overall employee engagement.
Exploring Current Practices and Future Trends
This edition's cover story attempts to understand the current Compensation and Benefits practices, the impact of technology, and future trends with insights from industry experts on a variety of issues, thus providing food for thought to think creatively.
If you like it, let us know. If not, well, let us know that too.
Happy Reading.
Regards,
Anil Kaushik, Business Manager - HR Magazine B-138, Ambedkar Nagar, Alwar - 301001 (Raj.) Mobile No. [Phone Number Removed For Privacy-Reasons] http://www.businessmanager.in
From India, Delhi
Acknowledge(0)
Amend(0)
181Welcome to Something More!
The Importance of Compensation and Benefits Policy
Compensating an employee for their services in any organization is not as simple and straightforward as it seems. In fact, the Compensation and Benefits policy reflects the culture of the organization. It represents an exchange of value and plays a pivotal role in shaping the culture and promoting its values. Therefore, the core values of the organization must be reflected in the compensation and benefits strategy. This approach aids in talent retention, enhances the employer brand, and increases the market value of the products/services the organization produces.
Designing a Robust Compensation and Benefits Policy
The Compensation and Benefits policy is not a mere copy-and-paste exercise. It's more complex than it appears. Since it is HR's primary responsibility to establish a robust Compensation and Benefits policy, HR needs to be realistic about what the organization can afford while designing the policy. Among other things, you need to be aware of what's required by law, understand what your competitors are offering, and design unique benefits that set you apart. Remember, benefits are a part of an employee's total compensation. Think creatively, and consider the small things that could have a significant impact. It's HR's job to help connect these dots. Creating a desirable mix of direct and indirect compensation options and benefits can help HR create a competitive edge and achieve organizational goals.
Addressing Common Compensation Issues
HR should be cognizant of common compensation issues that need to be addressed, which may include internal equity, external equity, perceived equity, and geographical differentials.
Adapting to a Multi-Generational Workforce
Since there is a mix of generations working together in organizations currently, the Compensation and Benefits policy needs a fresh perspective, keeping in mind the priorities of different generation employees. Overall, it seems to be shifting from direct monetary gain to an improved lifestyle and psychological safety for the new generation workforce. Research and surveys indicate that while older generation employees prefer more cash in hand and health facilities, including pension plans, the new generation workforce prefers flexible working, work-life balance, paid time off, parental leave, outbound trainings, and birthday/anniversary celebrations over direct cash salary. Therefore, understanding the different types of compensation is crucial to creating an attractive compensation package; otherwise, HR could potentially miss out on improving overall employee engagement.
Exploring Current Practices and Future Trends
This edition's cover story attempts to understand the current Compensation and Benefits practices, the impact of technology, and future trends with insights from industry experts on a variety of issues, thus providing food for thought to think creatively.
If you like it, let us know. If not, well, let us know that too.
Happy Reading.
Regards,
Anil Kaushik, Business Manager - HR Magazine B-138, Ambedkar Nagar, Alwar - 301001 (Raj.) Mobile No. [Phone Number Removed For Privacy-Reasons] http://www.businessmanager.in
From India, Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Employee reference policy.doc