Employee's Perception Towards Compensation And Benefit Policy

Compensation is reward that employees receive in exchange for their performance. It is concerned with wages and salaries, pay raises, and similar monetary exchanges for employees' performance. The value employees give to the compensation and benefit package have an influence on human resources outcomes namely, performance, productivity, satisfaction, retention, and attraction. With an increasingly educated workforce who desire more information about pay and benefit practices, it will be essential to communicate far more effectively than today and effective understanding and acceptance of compensation policies lead employees to contribute their maximum effort for the achievement of organizational objectives. When setting pay rates, compensation managers must take into consideration the employees' perception of fair, equitable compensation. The work contributes to emerging industry level perspective by investigating the relationship between the compensation and benefit package available and employee's perception, help the government in establishing wage control and guidelines and eases the mediating activity between organizations and the labor union representing the employees.