FORMS OF FINANCIAL COMPENSATION

Abstract

Compensation is an award or remuneration provided by the company to its
employees in the form of money, direct and indirect goods as compensation
because the employee has contributed his energy and thoughts for the
progress of the company in order to achieve the goals set. Compensation
functions: (a) Efficient allocation of human resources, (b) More efficient
and effective use of human resources, (c) Encouraging stability and
economic growth. Compensation objectives: (a) Appreciate work
performance, (b) Cooperation bonds, (c) Job satisfaction, (d) ensure
fairness, (e) retain good and quality employees, (f) control costs, (g) comply
with regulations , (h) motivation and discipline. Forms of financial
compensation: (a) salary, namely remuneration that is paid periodically to
permanent employees and has a definite guarantee (b) benefits, namely
compensation given by the company to its employees because they are
considered to have participated well in achieving company goals, and (c) incentives, namely compensation given to certain employees because of the
success of their achievements