What are Compensation and Benefits?
Compensation and benefit is a sub-discipline of human resources that focuses on employee compensation and benefits policy. There are two types of compensation and benefits — tangible and intangible. Tangible compensation and benefits are cash, certificates, plaques, etc. while intangible compensation and benefits are recognition, work-life and development. It would also be termed as a discipline aside from the awards itself. It may also vary depending on different organizations. However, there are mandatory compensation and benefits for employees that must be implemented. It would include social security contributions, worker's insurance, medical and unemployment insurance, etc.
How to Write a Compensation and Benefits?
Every business owners are expected to come up with compensation and benefits plan for the employees as this would strengthen the employer-employee relationship of a business. So if you are assigned as a compensation and benefits manager, take note that this would exist for the sake of your employees and so make them the paramount in making the compensation and benefits. If you need help in making one, below are contents that you need to consider in making compensation and benefits.
1. Take Note for the Budget
Every organization has a specific budget plan for every specification in the company. The first thing that you have to do is to allocate the budget for compensation and benefits. This would be your guide in designing the plan for the compensation and benefits of employees. If compensation and benefits are not established, the employer needs to obtain a quote to help carry-out the key benefit functions.
2. Make a Pay Philosophy
Your pay philosophy helps to determine as to what would be the plan outline for the employee plan. There are factors that you need to consider to make the pay philosophy. These are the amount to pay, overall benefits, total compensation, performance bonus, incentives, lunch, medical check-up, and others. As this would be drafted, care must be taken to ensure that the needs of the employer, employee, and clients met.
3. Communicate with Employees
As a part of the compensation and benefits management, you need to talk it out with your employees. It would also be a critical part of this compensation and benefits as it will ensure that the outcome would be employee-based and would be beneficial also for the employers. Along with communication, there must be a feedback mechanism. This would help the management to know the opinions and consider suggestions from the employees.
4. Monitor the Progress
Employers are mandated to conduct a periodic evaluation process to help monitor the effectiveness of compensation and benefits. This would be an effective way to know if the main objective of this project plan is obtained. There are instances wherein the outcome of the program is affected by sudden business changes. So if there are adjustments needed for the program, it should be done immediately. This may be a post-creating step but it would be essential in maintaining the created plan.