Compensation - Pay and benefits Management Essay Paper

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Compensation – Pay and Benefits
Introduction
The role of compensation in aligning employee behavior and organizational objectives is quite crucial. This assertion implies that human resource management is becoming much more important today than it has ever been in history. The four Ms of business management, which includes money, machine, material, and man have a significant hand in the success of business ever since the industrial age. Of the four, the man holds the highest regard as the most important element that contributes to organizational effectiveness and efficiency (Coker). In this regard, human resources should be considered as important to the organization that their concerns need to be met if they remain highly productive to the firm.
Economists argue that “labor only sells its services to the entrepreneur for productive purposes; does not sell itself” (Talathi). In this case, payments made to laborers are compensated for their services. Personnel remuneration is the term used to describe the compensation or paid workers receive for their services. Personnel remuneration comes in either wages or salaries. Concerns abound lie in the significance of personnel remuneration to the organization and its workers. Compensation helps the firm attract top talent, increase productivity and profitability, increase employee motivation, reduces employee turnover, and increases employee loyalty.
Attracting Top Talent in the Organization
Human nature is that they are constantly in search of opportunities that improve their financial situation. In most circumstances, employees who acknowledge their worth equates to a certain amount know their value. When their present situation fails to meet this bar, they will seek another organization that is willing to pay them accordingly. Smart management that intends to have the best personnel will do research on what their competitors are offering in regards to their compensation and benefits packages. They will then ensure that they offer their potential employees with a similar package or even a better so that they attract the best candidates for various positions in the firm. There is a benefit to having the best candidates seeking employment positions in the organization. Recruiting the right candidate for the first time is vital to reducing hiring costs. Also, it allows individuals to conduct the exercise to fulfill other tasks that need their attention. Besides, there is only a limited number of people who are highly talented and can elicit the expected skills and standards in performing specific roles.
Increases Employees’ Productivity and Profitability
Employees who are optimally satisfied with their duties and responsibilities in the organization are highly productive. In most circumstances, their happiness is predicated on compensation packages or else financial benefits. Exceptional compensation packages convey the idea that their services are valued in the firm. In retrospect, they gain much motivation and loyalty to the course and shared objectives. Employees who receive above-average salaries are highly motivated to conduct their activities in the most exceptional mann...