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CompensationIn human resources (HR), the field of compensation looks at the pay structures within organizations.
Some of the main issues in the area of compensations are:
1) How much should companies pay to attract, retain, and motivate employees?
2) Should they pay salaries or variable rewards (a.k.a. piece-rate)?
3) Should they provide benefits, and if so, to what degree?
4) What's an appropriate discrepancy between the pay for high and low performers?
5) Would it make sense to provide stock options or stock bonuses?
Compensation is also tightly linked to employee appraisal. If you have poor ways of measuring performance, that has consequences for how compensation should be structured.
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