Professional Documents
Culture Documents
What is compensation?
Compensation is money or other benefits
provided by the organization to employees
in return for their work.
Compensation is the remuneration received by
an employee in return for his/her contribution to
the organization. It is an organized practice that
involves balancing the work-employee relation
by providing monetary and non-monetary
benefits to employees.
Compensation Management
Ensure Equity
Compensation management strives for
internal and external equity.
Internal equity requires that pay be related
to the relative worth of a job so that similar
jobs get similar pay.
External equity means paying workers
what comparable workers are paid by
other firms in the labor market.
Control costs
A rational compensation system helps the
organization obtain and retain workers at a
reasonable cost.
Without effective compensation
management, workers could be overpaid or
underpaid.
Comply with legal regulations.
A wage and salary system considers the
legal challenges imposed by the government
and ensures the employer's compliance.
Facilitate understanding
Importance of Compensation
If you pick the right people and give them
the opportunity to spread their wings - and
put compensation and rewards as a carrier
behind it - you almost dont have to
manage them.
Jack Welch
Bangladesh industries are aiming for high growth and are looking for
talented human resource. For the purpose they are offering most
competitive compensation packages.
Besides the monetary and non-monetary benefits some
organizations also offer development benefits such as online degree
programmes or certification courses.
Telco sector has succeeded in increasing the compensation
packages at highest rate followed by Banking and Pharma sectors.
In Bangladesh industry rate of salary hike also depends on the job
position in the organizational hierarchy.
During last few years technical and professional skill oriented jobs
were offered more salary hikes than the senior management.