Impact of compensation management on employees’ performance

In this era of modernization, it has become a challenge for each organization to acquire efficient employees who work for the welfare of the organisation. Simultaneously, it is also a challenge for compensating the staff members in accordance with their performance and which works as a motivation. Also, there is a robust link between compensation management and employees performance. The variables which have impact on employees’ performance are wages & remuneration, working hours and promotional policies of the organisation. The goal of this research paper is to examine compensation management required to retain employees. Primarily, aim of this Research paper is to study the compensation management and related aspects and to know the impact of compensation management on employees’ performance. Employees must be managed properly and timely by providing best remuneration and compensation as per the standards. The lucrative compensation will serve the necessity for attracting the pre-eminent employees and helps in retaining them. In view of this research paper, main emphasis has been made on concept, need and importance of compensation management in improving the performance of the employee. Data has been collected from multiple sources of evidence, including various books, websites & journals. The paper describes the role of compensation management in the different organizations and concludes that it is an important tool in improving the performance of the staff members which additionally improves the organizational productivity.