{"id":2593,"date":"2008-12-02T14:17:00","date_gmt":"2008-12-02T14:17:00","guid":{"rendered":"https:\/\/www.bcjobs.ca\/hr-advice\/positive-returns-on-providing-well-planned-compensation\/"},"modified":"2019-11-10T21:52:03","modified_gmt":"2019-11-11T05:52:03","slug":"positive-returns-on-providing-well-planned-compensation","status":"publish","type":"post","link":"https:\/\/www.bcjobs.ca\/blog\/positive-returns-on-providing-well-planned-compensation\/","title":{"rendered":"Positive returns on providing well planned compensation"},"content":{"rendered":"

\"Positive_returns_on_providing_well_planned_compensation\"Compensation refers to all forms of pay and rewards received by employees for the performance in their jobs including all forms of cash, benefits<\/a>, services, and perks. It is important to recognize and communicate your “total” compensation<\/a> as “all” the pay you are providing your employees. This should be done so that the value of what you are offering in compensation is clear and that it in turn attracts and retains<\/a> the people<\/span> you need.
\nCompensation is given in financial rewards that are either:<\/p>\n

Direct<\/strong>
\n\u2022\u00a0\u00a0\u00a0 Wages and salaries
\n\u2022\u00a0\u00a0\u00a0 Incentives <\/a>
\n\u2022\u00a0\u00a0\u00a0 Bonuses and commissions
\n\u2022\u00a0\u00a0\u00a0 Stock options<\/p>\n

Indirect<\/strong>
\n\u2022\u00a0\u00a0\u00a0 Benefits <\/a>
\n\u2022\u00a0\u00a0\u00a0 Income protection programs such as Employment Insurance, Canadian Pension Plans and Workers Compensation<\/a>.<\/p>\n

Indirect benefits are costly to you and their value should be communicated and acknowledged when discussing the compensation you offer. When accompanying a base wage or salary with incentives, bonuses, and\/or benefits, you in turn create a compensation program that should support the values and goals of your business.<\/p>\n

When developing your business\u2019s total compensation program it is important that you understand and incorporate what is important to your business and its objectives. Consider creating a combination or variety of elements to your compensation program in accordance to your employee demographic and budgetary constraints. Program design, guidelines and procedures should always be tailored to contribute to your business\u2019s success within the context of its operating environment. Ensure to include the following:<\/p>\n

\u2022\u00a0\u00a0\u00a0 The different elements that will comprise the total compensation your business offers to its employees
\n\u2022\u00a0\u00a0\u00a0 That it is comparable or competitive within the industry
\n\u2022\u00a0\u00a0\u00a0 That it is internally fair; meaning that there is a logical increase in pay dependent on things like length of service, job performed, or the skills or abilities required to successfully complete the job
\n\u2022\u00a0\u00a0\u00a0 That there are established criteria that result in pay increase
\n\u2022\u00a0\u00a0\u00a0 A means of measuring and controlling your payroll costs
\n\u2022\u00a0\u00a0\u00a0 A means of measuring the success of your compensation program. For example being able to determine how competitive your compensation is in relation to similar businesses, and whether it accomplishes targeted outcomes of retention<\/a>, performance<\/a> and motivation<\/a>.<\/p>\n

The objective of compensation is to do the following:<\/strong>
\n\u2022\u00a0\u00a0\u00a0 Attract employees
\n\u2022\u00a0\u00a0\u00a0 Meet legal <\/a>requirements
\n\u2022\u00a0\u00a0\u00a0 Retain valued employees
\n\u2022\u00a0\u00a0\u00a0 Motivate performance
\n\u2022\u00a0\u00a0\u00a0 Motivate personal growth
\n\u2022\u00a0\u00a0\u00a0 Sustain high morale<\/p>\n

Some current trends in compensation are linking pay to performance objectives, competencies or skills required to perform the job, larger business strategies or goals, the position in relation to its importance of the business strategy and\/or rewarding team accomplishments. It is essential that you realize the importance of compensation and the flexibility you and your business have in creating a more customized compensation package. This will in turn promote the attraction, retention and development of quality people<\/span>.<\/p>\n

Related to compensation
\n\u2022\u00a0\u00a0\u00a0 Recruitment and retention<\/a>
\n\u2022\u00a0\u00a0\u00a0 Salary negotiation<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Compensation refers to all forms of pay and rewards received by employees for the performance in their jobs including all forms of cash, benefits, services, and perks. It is important to recognize and communicate your “total” compensation as “all” the pay you are providing your employees.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[149,165],"tags":[155],"_links":{"self":[{"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/posts\/2593"}],"collection":[{"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/comments?post=2593"}],"version-history":[{"count":5,"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/posts\/2593\/revisions"}],"predecessor-version":[{"id":7016,"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/posts\/2593\/revisions\/7016"}],"wp:attachment":[{"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/media?parent=2593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/categories?post=2593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/tags?post=2593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}