Compensation Plan
Compensation Plan
According to Decenzo and Robbins, compensation refers to "all rewards that individuals
receive as a result of their employment." It includes both direct and indirect payments.
Types of Compensation
1. Attract and Retain Talent: Competitive pay helps in hiring and keeping employees.
2. Motivate Performance: Incentives encourage higher productivity.
3. Ensure Equity: Compensation must be fair internally and externally.
4. Follow Legal Standards: Ensure compliance with wage and labor laws.