What is the importance of compensation in Human Resources Management?

well for starter, it's the main and prime motive for human capital in any where to work. It is what drives them to do their job.

it's also one of elements that creates an image and repuation of the organization, and gives it a competitive edge on recruiting good calibers, especially when compensation is taken as a whole benefits package not just the monetary value given.

a regular positive modification in the compensation value over time also is very crucial in maintaing the human capital of the organization, and to some extent protect them from headhunters of course along other elements.

Compensation is an important motivator when you reward people for achieving desired organizational results.

Employees motivation towards meeting of company's set goal, within deadline.

Adequate Compensation is the reciprocal obligation on the part of the employer for the work exerted by engaging  Human Resource to work for the Business or Activities connected. 

 employees would be happy with their jobs and would love to work for you if they get fair rewards in exchange of their services.We all have different kinds of needs. Some of us want money so they work for the company which gives them higher pay. Some value achievement more than money, they would associate themselves with firms which offer greater chances of promotion, learning and development. A compensation plan that hits workers’ needs is more likely to motivate them to act in the desired way.

Compensation is one of many human resource (HR) tools that organizations

use to manage their employees. For an organization to receive its money’s

worth and motivate and retain skilled employees, it needs to ensure that its

compensation system is not an island by itself. Not only is it important for

an organization to link compensation to its overall goals and strategies, it is

important that its compensation system aligns with its HR strategy.

Too many organizations plan and administer their pay systems by default; or

worse, fall back on “the squeaky wheel gets the grease” practices. More than

any other area in HR, ignoring pay and performance systems can be devastating. It is a very expensive and laborious process to hire new employees, buy back trust of current employees and renew the organization’s energy and motivation level. By ignoring this issue, it does not go away or get better with time. It will take extra money and valuable resources to fix the system.Smart, successful organizations do regular planning and evaluating of their

compensation and performance appraisal systems. Because compensation

is visible and important to employees, it is critical to consistently communicate a clear message regarding how pay decisions are made. In short, a solid pay-for-performance strategy requires that employee pay matches the organization’s message.

Compensation management is the biggest area of HR. It links with staff turnover, talent management, organizational development. Good compensation providers might be best employer in the competitive world. Without good compensation talent will be an absent and organization will be a loser leader.

Well its the extra push up for the better health of organization and employee both for being positive and more work regulated