How important are compensation and benefits?

Although there has been a global trend to diminish employee salary and benefits due to worldwide economic slowdown, recession, and outpaced population demands; uncompensated employment is tantamount to slavery and indentured servitude. 

 

If an employer opens shop with the intent to compete in local and global marketplace economies, employee compensation is a cost of doing business.  

 

Businesses that do not pay employees unilaterally fail.

 

Although some employers are actual deadbeats and cheap when employees go uncompensated while income stream is positive, in many instances, poor business planning is the culprit for failed business enterprises.   

 

Not only are compensation and some motivational benefits plan employment necessities, something other than employment exists if neither are present.  Slavery, indentured servitude, and illegal coercion for example. 

 

Compensation and benifitd are really important as they are having a great role in making employee feeling secured for himself and his family. That will affect positively on his work and his output.