Compensation - Research Paper Example

[Your full April 8, Compensation An effective compensation plan for employee motivation must be reflective of market wages and compensation rules so that it not only serves as a motivator but also helps the company to balance out its costs with employee performance. My compensation plan is about giving bonuses to employees who complete a specific number of years with the company. This may be called longevity bonus and it aims to encourage employees to serve the company for as long as they can so that they stand legible for this compensation.

This is about making the employees feel that they are precious to the company and the years that they have spent serving the company are valued. The main intention of laying out a compensation plan is to make the employees feel appreciated and esteemed, and my plan definitely achieves the aim. This is a form of indirect compensation. There are many intrinsic and extrinsic factors that motivate the employee to show improved performance and productivity. Intrinsic factors include considering each employee individually and sharing a good communicative platform with him.

Such an employee is easily satisfied with job outcomes and this is enough for his motivation. Some employees need external motivation in the form of rewards and compensations. Flexible scheduling strategies are very effective in employee motivation and include job sharing, compressed work sheets, part-time hours, and flexible deadlines. When employees feel that the work schedule is flexible and they can choose their starting and ending hours, they stay stress-free and this boosts their morale.