What are the Different Types of Compensation Management?
There are two different types of compensation management: direct and indirect. Compensation is the combination of monetary and other benefits provided to an employee in return for their time and skill. The field of compensation management provides management with the ideal combination of the different remuneration types. The purpose of this type of program is to retain and motivate good employees. Direct compensation is typically comprised of salary payments and health benefits. The creation of salary ranges and pay scales for different positions within the company are the central responsibility of compensation management staff. The evaluation of the employee and employer portions of benefit costs is an important part of a compensation package. Effective compensation plans are routinely compared with other firms in the same industry or against published benchmarks. Although some jobs are unique within a specific firm, the vast majority of positions can be compared to similar jobs in ot
