Compensation Techniques

Compensation techniques are methods used by organizations to determine how to pay employees fairly. These include strategies like job-based pay, where pay is linked to the role’s responsibilities; skill-based pay, rewarding employees for acquiring new skills; and performance-based pay, offering bonuses or incentives for achieving targets. The goal is to attract, motivate, and retain talent while maintaining internal and external equity. These techniques help ensure that compensation aligns with the company’s objectives, industry standards, and employee contributions, fostering a productive and satisfied workforce.