An effective compensation program attracts new staff, retains productive staff and motivates behavior that achieves corporate objectives.
Components of compensation include base pay, variable pay (dependent upon achieving specific results), work environment, career development, health benefits (medical & dental), income replacement benefits (death, disability, retirement) and stock purchase plans/options.
The motivational effects of compensation components are dependent on many factors including the employee’s age, gender, dependent status, occupation and tenure.
For more information on this topic visit www.store.eiu.com/N380 to preview a report titled “Key Findings from Business, People and Rewards”, recently published by The Economist Intelligence Unit of The Economist Group and written in co-operation with Towers Perrin.
The report shows how employee within age ranges respond to various aspects of compensation differently. The motivators for high job performance are compared to motivators for commitment to stay with the employer.
The ideal compensation program is flexible and empowers employees to modify their compensation structure over time to satisfy their changing personal needs.