Compensation Professional's Goals

The prime duty of human resources management is to optimize the best use of human resources,and to encourage and motivate the employees to increase the effectiveness of their potentials, which helps the company to develop a competitive advantage. Compensation here plays an important role to make the  employees comfortable, energetic, enthusiastic and motivated to do their best for the organization. The figure below describes a model to understand the need of effective compensation management to meet this objective of any organization.

                             

Employer's and Employee's Objective  

Employer's Objectives :

The main objective of the employers is to acquire competent employees at reasonable costs to the company. Other objectives could be:

1. To justify the cost to the company through performance and productivity improvement
2. To comply with legal rules 
3. To boost the morale of the employees  

Employee's Objectives :  

The employee's objectives are aimed at equity-based compensation, fair evaluation of their worth, comfort at the work place and commitment of adequate cushion for inflation and better performance. 

Thus, the employee's objectives are:

1. To get equity based remunerations.
2. To satisfy their worth
3. To have cushion for price inflation.
4. To have security and welfare consideration.

Compensation and Organizational Objectives

The compensation system is designed to achieve certain objectives. Though the main objective of compensation management is to attract competent personnel, minimize the conflict, encourage the employees to perform better, and have a culture and policies to retain them, it aims at treating the employees as an asset to the organization and properly maintains them and keep satisfied.

The establishment of equity is an important objective of compensation management. However, the general objectives of compensation management are listed below.

• To attract and  acquire qualified and competent employees to meet the organizational objectives.
• To secure internal and external equity 
• To control the desired behavior of the employees
• To reduce conflicts and grievances

Every organization has a goal to accomplish and an urge to develop competitiveness, and therefore tries to acquire and retain the talents by designing and offering attractive compensations.