Base compensation - compensation management - Manu Melwin Joy

Base compensationCompensation Management

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – [email protected]

Compensation in organization

• Compensation is a wide

range of financial and

non financial rewards to

employees for their

services rendered to the

organization.

Compensation in organization

• It is paid in form of wages,

salary, other benefits such

as vacations, maternity

leave, medical facilities etc.

compensation helps in

motivating the employees

and reduce labor turnover.

Types of compensation

• Base compensation

• Supplementary

compensation.

Base compensation

• it involves monetary benefit to

the employees in the form of

wages and salaries. It is giving

the remuneration to the

workers for doing the work.

Base compensation

• Wages are generally given to

the workers based on hourly,

daily, weekly or monthly basis.

But salary is the compensation

given to the office employees.

Base compensation

• Wages may be based on the number of

units produced i.e. piece wage system or

the time wage system i.e. the time spent

on the job. But salary is always based on

the time spent on the job. When it is

difficult to judge the production of the

company then the compensation is paid in

form of salary.