Compensation management

Compensation management is the discipline for determining employees' appropriate pay and benefits. A critical element in talent management and employee retention, it uses financial and nonmonetary benefits to attract recruits, reduce turnover, spur performance and boost employee engagement.

What is compensation management?

Compensation management is the process of managing, analyzing, and determining the salary, incentives, and benefits each employee receives. Compens...

Why should HR leaders care about compensation management?

Effective compensation management benefits both the employer and the employee. Professionals who receive a fair base salary, generous benefits, and...

What are the main types of compensation?

Compensation includes far more than just a base salary. The full compensation package includes a variety of compensation types, both direct and ind...

How is compensation determined?

Many factors go into determining the specific compensation package offered to any given person, including external factors relating to the company’...

What can HR leaders do to ensure effective compensation management?

Develop and apply a compensation philosophy. A compensation philosophy formally documents the company policies regarding employee salaries, bonuses...