Examples and explanations of direct impact compensation
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Examples and explanations of direct impact compensation
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Step 1
Compensation
It is the monetary payment received by an employee from his/her organization in exchange for his/her services. The earnings earned by the employees from their workplace include the salary or wages and perks that are applicable for that posting. For examples, commissions, sharing of profit, sharing of gain, bonuses, and wages.
Objectives of Compensation
- To attract skilled employees
- To retain potential employees
- To motivate the employees
- To recruit talented employees
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