What is compensation and benefits?
Compensation and Benefits delivers salaries and employee incentives to reward employees. The creation, management, and distribution of these packages are handled by a HR Generalist or Compensation & Benefits Specialist.
This team deliver that ‘pay day feeling’ to each employee, making sure that they are paid competitively in the market and are suitably rewarded for the work they produce. This covers salary, bonuses, core benefits and fringe benefits.
Why is a good compensation, benefits and rewards scheme important?
At the centre of Compensation and Benefits lies how an employer values their staff. Decisions around employee benefits are designed to recruit the best talent on the market, retain existing talent within the business by boosting morale and improving company culture, typically creating a more productive workforce.
What’s the difference between core and fringe benefits?
People who work within compensation and benefits devise policies for a business’s salary, bonus and incentive schemes. Core benefits include:
Each business will usually then have a fringe benefits package designed to satisfy their workforce and offer attractive perks beyond salary, these can cover:
Free food and/or drinks
Dental care plans
Subsidised gym memberships
Free or subsidised travel
Employee referral bonus
Free company events
What skills are required of a compensation and benefits specialist?
As a specialist within compensation and benefits, there are certain skillsets that can increase success and help building a secure function:
Knowledge of financial laws and regulations
Monitor company salary structures and benefits
Potentially research and analyse the salary rates of their competitors
Ability to make recommendation to employees on pension and insurance schemes
The Future of Compensation and Benefits
Innovative companies within the market are focused on making pay a ‘non-issue’ for current and prospective employees. Companies with a progressive mindset are seeking to invest in their business’s employer value proposition and align their pay incentives to that proposition.
Another way to create a unique employer brand through compensation and benefits rests on emphasising equality of pay within the business and offering rich benefits. For example, extended maternity leave, generous paternity leaves that last longer than statutory mandate.