Strategic Compensation

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Human Resource Management: Compensation

I perceive compensation for an employee includes his or her salary, and the indirect and direct benefits and rewards. According to Martocchio (97), these benefits include pension plans, medical covers, life insurance, and paid leave among others. Conversely, rewards include bonuses and salary increments to name a few.

I conceive fair and equitable compensation to be of high importance. In fact, the program for benefits or rewards could play a significant role in determining the success of a business or organization. Notably, employees are the face of the company to the outside world because they come into contact or interact most with the firm’s clients. Given that, the way the workers treat or serve the clients will reflect on the organization in a certain way, which will either build or damage its reputation, resulting in either the success or failure of the firm. For this reason, employees require motivation to perform at their best for the good of the firm.

It is my understanding that all corporation’s managers face the challenging task of providing motivation to staffs. Accordingly, motivation denotes the psychological processes for stimulating persistence and excitement of voluntary deeds focused on a certain goal. Owing to the occasional high individualization of motivation, different methods can be used to satisfy the employees. As such, understanding motivational emotional practices is essential for the effective leading of workers towards attainment of the goals of the firm.

Among the employee motivation theories for workplaces, one major one is the expectancy theory, which reinforces my sentiments on fair and equitable compensation. According to this approach, the amount of work input and level of commitment to the job by workers is dependent on their expectations of what they will receive in turn as compensation. A compensation structure based on...