Employee Compensation Takes On Many Forms

by on June 22, 2009 · 0 Comment POSTED IN: HR Info Center

Employee Compensation Also Entails Work Environment and Recognition

Employee compensation is not just about salary, bonus, stock, and benefits. It’s all the things that employees get from an organization for the services that they provide us. Employee Compensation is almost like a bargaining system. This may include more than just cash and more than just stock, it may be the type of work that they perform. Additionally, it may be recognition, a great culture, or a great boss.

If the organization is strong and have many things going for it in other areas such as teamwork, culture, great managers, whatever that may be, it takes less pressure off the compensation side. When there’s a turnover, the first thing people think about is that there are problems with the compensation program. That’s not necessarily the case.

Lots of employees would be willing to take even less than competitive market rates if they had a good manager. A good manager is extremely important. You might even want to run turn over rates by managers just to see.

With regards to non-monetary rewards, the compensation is the largest expense most companies have these days. Needless to say, we want to get the greatest return on our investment in employee compensation here but we also have to attract, retain and motivate a sufficiently qualified work force to achieve the company’s strategic and financial objectives. So, looking at both those things, we are looking for the entire package to reward our employees again, not just salary and not just stock.

There are cheap ways of attracting and retaining and motivating people and taking pressure off of the employee compensation side. Such as:

Recognition and status, and these are things that have come out in survey after survey after survey. What’s wrong with telling people that they’ve done a good job? What’s wrong in even publicizing somebody’s name? The most value you’ll ever get on a dollar for dollar basis is to walk in somebody’s office and hand him a check for even $100 and say, “You did a great job.” Sales suggestions and employee at the period, safety, all these are kinds of award that you could do. Recognize people and still not spend a lot of money on doing it.

Learning opportunities, people want to gain new skills and take on new responsibilities. We ought to use that to our advantage. And this is cheap staff to do.

Flexible schedules, lots and lots of people like flexible schedules. Lots of organizations have moved into flexible schedules.

Good managers and co-workers. Good manager training, manager should do the right things, including removing obstacles for employees. And that’s what the managers supposed to do is get the absolute most from their employees. And their job is to help their employees achieve their objectives.

Edited Remarks From “The 7 Deadly Sins Of Employee Compensation Plans (And How To Fix Them)” by Rick Olivieri

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