Compensation

Paper Summary:

The paper discusses how companies use compensation as a means of employee motivation. The paper examines various methods of worker's compensation, including 'equity-based' compensation plans, wherein ownership of the company is offered to the top workers of the company. The paper further examines incentive plans such as 'profit-sharing', wherein the company will undertake to donate a small percentage of its pre-tax profits to a savings pool, which would later on be divided among deserving employees. The paper concludes that a good compensation plan leads to better employee motivation, and increased efficiency, output and productivity.

Outline:
Definitions of Compensation
Goals of compensation
Different types of compensation plans generally used by a company
Methods generally used to determine compensation
Why do compensation packages differ?
Conclusion
References

From the Paper:

"As far as human resources are concerned, compensation refers to the pay structures within any particular organization. Some of the primary issues regarding compensation are: how much is a company to pay a worker, in order to attract him, and then keep him, and then keep him completely motivated so that he does not move over to another company. Must the company offer to pay the employee a salary, or rewards? Must the company pay benefits to its workers, and if so, what must be the amount, and how exactly must it be paid? Can there be a distinct difference regarding the pay scale for high performers, as compared to that of lower performers? Would it be a better idea if the company were to provide stock options and stock bonuses for the employees of the company?"

Sample of Sources Used:

• "Bambooweb Dictionary, Compensation" Retrieved From http://www.bambooweb.com/articles/c/o/Compensation.html Accessed 17 June, 2006
• "Definitions of Compensation" Retrieved From http://www.google.co.in/search?hl=en&lr=&defl=en&q=define:compensation&sa=X&oi=glossary_definition&ct=title Accessed 17 June, 2006
• "Definitions of worker's Compensation" Retrieved From http://www.google.co.in/search?hl=en&lr=&oi=definer&q=define:workers%27+compensation&defl=en Accessed 17 June, 2006
• "Employers Compensation" Retrieved From http://www.roberthalffinance.com/RH/Compensation?src=NACMCareerAndMgmtText Accessed 18 June, 2006
• "Human Resources, Worker's compensation" Retrieved From http://www.unh.edu/hr/wc.htm Accessed 18 June, 2006

More papers on Compensation:

• Term Paper # 139240 : "Workers' Compensation Legislation"
• Analytical Essay # 130821 : "Business Compensation Strategies"
• Essay # 71927 : "Executive Compensation"
• Term Paper # 120893 : "Compensation"

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