Explain compensating differential
Explain compensating differential
An organization consists of various employees who work together for the purpose of fulfilling organizational objectives. Employees work for their own motives which may vary. Some of the motives may include being independent, earning money and other financial motives, career growth, gaining experience in work and so on. Compensation is the amount of money or salary that is given to the employee in return for their services that they provide to the organization. There are various benefits that are provided in addition to the salary. These incentives and other benefits serve as the motivational factor which eventually leads to higher productivity of the employees.
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