An empirical study on employees’ awareness on strategic aspects of compensation management

Compensation is what employees receive in exchange for their contribution to the organization. The term compensation is a comprehensive one which includes pay, incentives, and benefits offered by employers for hiring the services of employees. Compensation strategy of an organization plays a vital role in terms of rewarding and recognizing the star performers, planning the individual employees’ career, meeting the industry rate and motivating employees to be regained in the company. Compensation strategy provides a sense of purpose and direction and a framework for developing reward policies, practices and process. It is based on an understanding of the needs of the organization and its employees and how they can best be satisfied. It is also concerned with developing the values of the organization on how people should be rewarded and formulating guiding principles that will ensure that these values are enacted. The objective of the study was to investigate overall perception of entry and middle level employees about the organizational compensation, reward and recognition vis-a-vis the organizations’ approach towards the same.