Compensation
- what you pay someone to entice them to continue to do work for your company -
is a critical facet of any manager's job. Often, unless you are the president
or owner of the company, you have others helping you deal with compensation
issues - like a human resources department or consultant. Compensation includes
many things beyond straight salary. It also includes benefits, perks, stock
options, etc. You have to balance what these cost against what your employees
perceives as their value, and that varies by employee.
You have to measure compensation levels
against other employees in the company, against other employees in other
companies in similar positions, and against performance. You have to determine
salary ranges for existing positions and adjust those periodically to
compensate for economic factors (cost of living changes, inflation) and
competitive pressures (industry demand for that type of employee, profit
margins).
In
my opinion, Web based compensation and planning is an online compensation
system or approach used to arrange the compensation tools that enable the
company to collect, store, manipulate, analyze, utilize, and distribute the
compensation data or information. When company using the web based compensation
system, all information regarding to the compensation will be more systematic
and clear (McGaughey, 2011). This could allow the upper and lower management
easy to look at the compensation provide by company.
There are advantages use the web based compensation and
planning. Simplify the process of give compensation are one of the benefit used
the web based compensation and planning system. Company can save the time use
to check the performance data of employees when want to provide compensation
for them. This is because by using the effectiveness technology, the
information will be more accuracy.
Also,
web based compensation and planning are allow the company to streamline the
administration of employee’s compensation and benefits. There are many web
based compensation tools can use to administrate employee’s compensation. So,
the company can use the web based compensation tools to manage the task.
Other
advantages include web based enable the company sends messages to employees to
view their variable pay performance targets. When employees receive the
message, they could understand their current level of compensation and also the
target of compensation they want to achieve in the future. This could give a
very clear compensation planning for the employees and also could be a
motivation for employees to work hard (Beam, 2001).
(406
words)
11) Beam,
B. T. (2001). In Employee Benefits, 6th Edition (pp. 85-88). New York: Dearborn
Real Estate Education.
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