HRM professionals need to determine that compensation is fair, meets industry standards, and is high enough to entice people to work for the organization. Compensation includes anything the employee receives for his or her work. In addition, HRM professionals need to make sure the pay is comparable to what other people performing similar jobs are being paid. This involves setting up pay systems that take into consideration the number of years with the organization, years of experience, education, and similar aspects. Examples of employee compensation include the following:
Health Benefits
Pay 401(k) (retirement plans)
Stock purchase plans
Vacation time
Sick leave
Bonuses
Tuition reimbursement
Since this is not an exhaustive list, compensation is discussed further in "Compensation and Benefits".
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