WEB-BASED COMPENSATION AND PLANNING

Based on my understanding, the compensation could be in two form which are in monetary form, for instance the salary and wages for that employer pay to the employees for the job they do according the rules of the organization with standard increases due to the cost of living, merit, and promotion. Other than that, the compensation also can be in other form that offered by the employer to the employees which is non-monetary form for instance health insurance, accidental death insurance, sick leave, vacation pay, and retirement pension plans. This is for to attract and retain the employees in the organization to perform the job effectively and able to achieve the objectives of the organization.

            Web-based compensation and planning include a few things for instance short-term and long-term incentives, merit pay, recognition awards, base pay, and rewards that can give effects to the performance of the employees in the organization. The short-term and long-term incentives are important to the employees because it can attract them to perform the job effectively. For instance, the organization gives salary that suitable with the job, an employee is placed in the salary grade appropriate for her or his job and also the organization plans the development in career planning for the employees. The goals of long-term incentives are to motivate the employees for aligned the performance over periods that more than one year. Other than that, the goal is to align the objectives of employees with the organization’s objectives.

            Next, the merit pay has been use by the organization. From what I have been learned, the merit pay is the pay is based on the performance level. For instance, the good performance of the employee, the higher of increase of merit pay. If the level of the performance of the employee is low, so the level of the merit pay will low.

Recognition awards are low-cost or no-cost awards that are reflective. When the employee perform the job with effectively, the employee will receive the reward that may have little value but it is also affect the psychologically. Rewards are used to attract employees to remain with organization and also to make the employees to perform the job effectively. The system has progressed, the employer has become better to enhance the performance of the employees’ report and align the compensation and benefits the programs to attract and motivate the employees.

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