What Is Compensation In HRM?
Compensation in HRM can be defined as a sum of monetary and non-monetary benefits employees get as a reward for their effort. It entails wages, incentives, bonuses, benefits, and perks. Proper compensation management provides fairness, motivation, and retention through matching pay structure with performance and market standards.
The HR professionals come up with the compensation plans that attract talent, preserve internal equity, and adhere to labor laws, which have a direct impact on employee satisfaction and organizational success.
Example Sentences:
Transparent compensation in HRM encourages motivation and loyalty.
HR reviews compensation policies annually to stay competitive.
Fair compensation in HRM reduces employee turnover rates.
Synonyms:
- Reward Management,
- Pay Structure,
- Remuneration Strategy,
- Total Rewards System,
- Compensation Policy
