Compensation is not all about financial rewards. In fact it includes both financial and non-financial rewards that companies give their staff in exchange for their hard work.
The purpose of a compensation scheme/system is to attract and retain good staff to work and help the organization to achieve its goals.
Some of the compensation schemes or systems include the following:
|
1. Piecework · This system reward employees based on a set rate for every item they produce. |
|
2. Commission · This system rewards employees on a percentage of transaction’s value they made |
|
3. Profit sharing · Besides their regular compensation, under this profit sharing system, the employees are rewarded with a certain percentage of company profit |
|
4. Employee Stock Ownership Plan · This system reward employees with shares of company stock in addition to their regular compensation.. |
|
5. Stock Option
|