Skip to main content

03. COMPENSATION AND BENIFIT FOR EMPLOYEES IN THE COMPANY .


COMPENSATION

Compensation is defined as the cumulative financial and non-financial rewards payable to employees in return for their services. Financial rewards are related to wages, bonus, profit sharing, pension plans, paid leave and purchase discount which the employees received as an exchange for their contribution to the organization. However, non-financial rewards are relational returns which emphasize making life on the job more attractive consists of recognition and status, employment security, challenging work and learning opportunities. The financial and non-financial rewards are usually based on the value of the job, level of personal contributions, efforts and performance. At the organizational level, compensation is critical in attracting, retaining and motivating the employees to continue contributing towards organizational success. Compensation also being an important reason to influence individuals’ choices to work with an organization. Many organizations not only use the compensation system to reward and recognize employees’ efforts and contributions, but also, as a motivation to improve employees’ productivity through improving job performance, preventing the intention to leave and increasing career satisfaction.

BENIFIT

Benefits are optional, non-wage compensation provided to employees in addition to their normal wages or salaries. These types of benefits may include group insurance such as health, dental, vision and life disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation, funding of education, as well as flexible and alternative work arrangements. A fringe benefit is a meandering incentive contracted to an employee or a group of employees as a part of executive membership, which influences performance and employee retention .It can be argued that benefit scheduling is a critical section of human resource planning process on account of huge expenditures and financial resources approved for the future  At the managerial level, benefit is critical to attract, retain and motivate the employees to continue work for organizational success.

Comments

  1. Thivon LiyanageApril 9, 2025 at 6:20 PM

    While financial rewards are important, offering non-financial benefits ensure the employee motivation and satisfaction. Benefits such as flexible working hours, career development opportunities, commendation programs, and a positive work culture can significantly boost morale and loyalty of the employee. Here you have clearly outlined the value of the both types of the benefits.

    ReplyDelete
    Replies
    1. HARSHANI NARATHOTAApril 15, 2025 at 3:26 AM

      Thank you Thivon for your thoughtful comment and I'm totally agreed with you. financial rewards are important, offering non-financial benefits ensure the employee motivation and satisfaction.

      Delete
  2. Thiranji SamarakkodyApril 11, 2025 at 3:29 PM

    This write-up offers a strong overview of compensation and benefits, effectively linking them to employee motivation and organizational performance. The clear explanation of both financial and non-financial aspects adds depth, making it informative and relevant for HR practices. Great clarity and focus throughout.

    ReplyDelete
    Replies
    1. HARSHANI NARATHOTAApril 15, 2025 at 3:32 AM

      Thank you Theranji for your valuable comment. You are absolutely right. financial and non-financial rewards payable to employees in return for their services. Financial rewards are related to wages, bonus, profit sharing, pension plans, paid leave and purchase discount which the employees received as an exchange for their contribution to the organization. Benefits are optional, non-wage compensation provided to employees in addition to their normal wages or salaries. These types of benefits may include group insurance such as health, dental, vision and life disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation, funding of education, as well as flexible and alternative work arrangements.

      Delete
  3. HARSHANI NARATHOTAApril 15, 2025 at 3:30 AM

    Thank you Theranji for your valuable comment. You are absolutely right. financial and non-financial rewards payable to employees in return for their services. Financial rewards are related to wages, bonus, profit sharing, pension plans, paid leave and purchase discount which the employees received as an exchange for their contribution to the organization. Benefits are optional, non-wage compensation provided to employees in addition to their normal wages or salaries. These types of benefits may include group insurance such as health, dental, vision and life disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation, funding of education, as well as flexible and alternative work arrangements.

    ReplyDelete

Post a Comment

Popular posts from this blog

My Current work Place in Mercantile Investment and Finance Company PLC

  I am currently working at Mercantile Investment and Finance Company PLC since 17 November 2025 , holding the position of Senior Business Associate . This role is a valuable and positive opportunity in my professional life, allowing me to further develop my skills and experience in the finance and marketing sectors. I am highly motivated, committed to working hard, and dedicated to contributing to the organization’s success while progressing toward higher career achievements in the finance sector.
Post a Comment
Read more

01. INTRODUCTION

  HRM is concerned with the human beings in an organization. “The management of man” is a very important and challenging job because of the dynamic nature of the people. No two people are similar in mental abilities, tacticians, sentiments, and behaviors; they differ widely also as a group and are subject to many varied influences. People are responsive, they feel, think and act therefore they can not be operated like a machine or shifted and altered like template in a room layout. They therefore need a tactful handing by management personnel.”. HRM is the process of managing people of an organization with a human approach. Human resources approach to manpower enables the manager to view the people as an important resource. It is the approach through which organization can utilize the manpower not only for the benefits of the organization but for the growth, development and self satisfaction of the concerned people. Thus, HRM is a system that focuses on human resources development ...
6 comments
Read more

About my Self.

I am a dedicated professional currently working in the marketing sector at Mercantile Investment and Finance Company PLC, Weligama Branch , with over 14 years of experience in the finance sector . Throughout my career, I have developed strong skills in marketing, customer relationship management, and financial services. I am a hardworking, team-oriented individual who maintains a friendly and professional approach when working with colleagues and clients. I am highly motivated to continuously develop my knowledge and leadership capabilities, with the ambition of achieving a higher managerial position in the finance sector in the future.
Post a Comment
Read more