What is HR compensation and Benefits?

Employee compensation and benefit opportunities should be communicated through company policies. These policies define compensation for financial and non-monetary benefits, identify the value for the employee, and comply with legal requirements. Purpose of Compensation and Benefit Policies

Companies provide a variety of compensation and benefits to employees for performing their jobs. These compensation and benefit strategies should be clearly defined and communicated to employees within the employee handbook or company policies and procedure manual.

Assume you are the compensation and benefits manager at Synergy Corporation. You are responsible for researching, developing, communicating, and continuously evaluating the company compensation and benefit policies. These policies should:

• Provide employees with clearly defined and equitable strategies,
• Define company compensation and benefit opportunities,
• Comply with legal and tax requirements for compensation and benefits, and
• Communicate the value of the benefits to current employees as well as in recruiting future employees.

Compensation: Compensation is payment to an employee in return for their contribution to the organization, that is, for doing their job. The most common forms of compensation are wages and salaries

Benefits:Benefits are forms of value, other than payment, that are provided to the employee in return for their contribution to the organization, that is, for doing their job. Benefits can be in form of Insurance, vacation pay, holiday pay, maternity leave, contribution to retirement (pension pay), profit sharing, stock options, and bonuses

ADVANTAGES OF COMPENSATION AND BENEFITS

1. Job satisfaction

2. Motivation

3. Low Absenteeism

4. More productivity

 

5. Higher retention rate 

Thanks 

I support the answer given by colleague Sindhuja

Regards  

Its all about employees' financial rewarding for their delivered (time, effort, results, productivity and distinguish performance), plus the total sum of their financial rights= ( regular financial rights + bonuses - deductions).

So compensations are financial, moral and material merits that recorded as debit on account:

- Basic Salary: Fixed and un-changeable financial payment as agreed at the contract adding to it the annual increments.

- Allowances: Which is cash paid to the individuals according to their level on the hierarchy: ( Housing, Tickets, Kids education, Transportation...etc)

- Benefits: Also a merit paid for employees according to their levels but not necessarily in cash : ( Car, Healthcare, Discounts, Membership, Social security... etc)

- Increments: Cash payment according to employee annual retaining and results of appraisal,which is added to the basic salary.

- Motives: It's either cash, material or moral merits that might be given to the individuals occasionally according to their performance or attitude.

- Bonuses: Cash awards paid to the employees related to the annual profit earnings. 

 

Thanks for invite -

Agree with both answers for Ms.Mrs  - Kaslekar - Sindhuja  -- Good details  !!!

Sorry, I am not expert in this area!!! However, will go with Sindhuja's answer!

Thanks to invite.

Compensation has almost same nature in all the Organizations, but benefits have variation in the Organizations. Permanent employee almost enjoy the complete packages whereas contractual employees go through the different criteria depending on the nature of the job.   

I like the answer quoted by Mr. Marvin!

• is a sub-discipline of human resources, focused on employee compensation and benefits policy-making. It is known in the United Kingdom as “total reward” and as “remuneration” in Australia and New Zealand.

Compensation:  wages and salaries

Benefits: forms of value, other than payment,  Insurance, leave salaries, holiday pay, Tickets, maternity leave, Graduty, Pension, profit sharing, stock options, and bonuses etc 

ADVANTAGES OF COMPENSATION AND BENEFITS

1. Job satisfaction

2. Motivation

3. Low Absenteeism

4. Boosts Productivity

5. Higher retention

Thank you for the invitation to answer.

aan excerpt from hrcouncil.com

 

When most people hear the term compensation they think about "what a person is paid". Although this is true, it is only one aspect of a complex topic. Compensation includes not only salary, but also the direct and indirect rewards and benefits the employee is provided with in return for their contribution to the organization.

To determine compensation, organizations should develop a compensation and rewards program. This type of program outlines an equitable process for compensating employees. A well-structured program with a good balance of wages, benefits and rewards will support an organization to remain competitive in today's labour market and ensure sustainability in the future.