Competition and compensation

Competition and compensation

Good compensation, does help the employees to retain quality staff. One thing for sure that the employees are invaluable assets to an organization. When you ensure their happiness they are bound to be more productive and the chances of leaving the company are a bare minimum. You need to understanding that retaining the cream among them is not like retaining customers.

The key aspect in making a employee loyal to an organization is the compensation package. It should be competitive and well designed to meet the needs of the employee. The HR in line with the hiring manager is entrusted with the process.

Compensation is the remuneration which the employees receive for the task which they perform in an organization. It can be available in the form of cash or other benefits. The current trend of companies is to adopt a strategy where they combine both of them.

But you would need to ascertain the fact that compensation can be a two edged sword when things are not managed properly. On one hand it can help an organization retain a employee by offering him a high salary. But this has a drawback as they will be less attached to the intrinsic of the job and they are bound to leave the job when they get a job elsewhere for sure.

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The HR department needs to find a balance between the two and this can be achieved by looking at the wage structure within the organization first and foremost.