Hr Managment Essay

1274 WordsMar 8, 20126 Pages
Direct Financial Compensation By: Michael Wesche Human Resource Management March 6, 2012 Human Resource Management has never been as significant as it is today. Companies want to attract, retain and motivate there workers to meet the company’s objectives. Today Humans are regarded as one of every company’s assets so they need to be efficient and managed correctly. One of the tools companies use to attract, retain and motivate its people is Compensation Management. All of the world’s biggest companies CEO’s all have their pay and severance pay negotiated long before they are hired and fired in which some cases is a good thing and in other cases it’s a bad thing. Let’s suppose you own a business, you have hired three sales persons and a receptionist. The salespeople are responsible for looking after all the sales. The receptionist is responsible for looking after all the overall money and managing the account books. Your eventually going to get bigger and have to hire more people as your business gets more successful. Would the three salespeople and the receptionist work for free? No they are like every red blooded American and expects something in return. Everyone has heard the common phrase give and take you always have to give something to someone that you take something from. Compensation is the same thing but in monetary terms. Compensation is basically the monetary value you give your employees in return for their services on a daily basis. You have two types of compensation Direct as in wages, salaries, commissions and bonuses. Then you have indirect which is your benefits your legally required benefits include social security which is what you pay into with each check towards retirement or disability, unemployment compensation is insurance provided to workers who have been terminated through no fault of their own for 26 weeks until they find a new

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