Compensation

Running Head : Compensation

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ABSTRACT

The business world today is characterized by the romising environment for trading activities . Therefore success can only be achieved through the ability of managers to make critical and far reaching decisions bereft of emotions of the workforce to succeed Therefore there is need to the todays managers to have an ideas of improving productivity to meet the current competition in the market , in various modern commercial and industrial sectors . This can only be achieved through proper organizing

and managing the factors well factors of production as human resource mostly , because it is fundamental in production . In this regard this dissertation shall examine the ways which the progressive approach to workers benefit influences the long term benefits than its short term initiation cost to the organization . Through tool of designs that are highly sophisticated , advanced and effective to manage human resources . This is planned in to promote more profitable and sustainable employment opportunities in the labor market and overall good to business output In organizational management compensation of employees refers to payment to an employee in return for their contribution to the organization in terns of their job (Garry , 2006 ,

. 18 . This compensation is usually provided as base pay that is based on the role of the employee in the organization and the market for the expertise required to conduct that role . Secondly is variable pay is based on the performance of the person (Fredrick , 2006 ,

. 93 ) in that role that he or she have performed . For instance how well an employee has achieved goals for financial year like most dominantly is the bonus plans within many organizations . But in todays business environment the issue of the employees compensation is key in human resource management (John , 2005 br

. 324 ) to many organizations holding the fact that the persons with experience are in great demand but short supply in the labor market According to the Employment Dynamics and Growth Expectations (EDGE findings it reveals that more than 50 hiring managers faces a shortage of qualified workers in various field of specialization . Therefore companies are rolling out the red carpet to attract the best , brightest workers to their firms . This is done through offering signing and performance bonuses , accelerated salary reviews and premium compensation (Fredrick , 2006 ,

. 123 . Therefore this indicates that the key to company performance is the human resource the drive the companies output . In this regard the managerial should focus on the effort of offering 6the best services to their employees to retain them

But however the business analysis of demographic trends points out some significant challenges for employers in the business environment today . Organizations faces a serious labor shortage and contemplate retirement in the labor market which indicates that the market will have inadequate young people entering the workforce (Garry , 2006 ,

. 289 ) to replace the exiting ones . Like for instance the current estimates on the America labor market the shortfall ranges from 3-10 million workers by...