COMPENSATION AND REWARDS INHUMAN RESOURCE MANAGEMENT

Abstract

Some reasons why compensation is so important: employee motivation,
employee retention, competitiveness in the labor market, achievement and
productivity, fairness and employee satisfaction, company culture, cost
savings, company reputation. In general, the objectives of compensation
management are: cooperative ties, job satisfaction, effective employee
procurement, motivation, increased productivity, employee stability,
discipline, influence of labor unions, influence of the government. The
commonly applied compensation payment systems are: time system, results
system, and piece rate system. The amount of compensation must be
determined based on job analysis, job description, job specifications, position,
external consistency, and guided by justice and labor law. The difference
between appreciation and recognition lies in its form and intensity. Awards
are a more formal form of recognition and usually involve a physical gift or
some type of award. Recognition, however, is more about providing verbal or
non-monetary appreciation to employees without the need for an associated
physical gift. Factors that influence the amount of compensation are: supply
and demand for labor, ability and availability of companies, labor unions,
employee work productivity, government with laws and presidential decrees,
cost of living, employee position, employee education and experience,
economic conditions national level, type and nature of work, company's ability
to pay.