Article Analysis

Compensation and Benefits Issue
Compensation is a powerful business tool. It can influence behavior, build competitive advantage, and contribute to the creation of shareholder value.
Compensation covers more than the basic flat wage and can include a range of entitlements such as health benefits, cars, bonuses, and child-care. While the cost or living varies greatly from one country to the next, companies must also consider taxation, legislation and union requirements in host countries.
Adequate compensation is imperative because it can help to reinforce the organization’s culture and key values and to facilitate the achievement of its strategic business objectives’. Compensation refers to all forms of pay or rewards going to employees and arising from their employment, and it has two main components. There are direct financial payments in the form of wages, salaries, incentives, commissions, and bonuses, and there are indirect payments in the form of financial benefits like ...