In various companies, compensation decisions are vital part of management of any company as it involves employees. This paper will give the meaning of compensation decisions and advance to process and analysis of employee decisions. According to Hearthfield (2014), compensations decisions refers to the entire monetary as well as non-monetary payment given to an employee from an employer in repay of work performed with respect the requirements. Compensation decisions entails factors like the market research on the credibility of related jobs in the market place, the contributions and accomplishments of an employee, available employees with like skills in the market, the petition of an employer to draw and maintain a certain employee for the value he or she thinks the employer adds to the organization and the company profitability. Additionally, compensation can include payments such as bonuses, overtime pay and sharing of profits, recognition rewards as well as checks and commissions based on sales made. On the other hand, non-monetary perks of compensation include company-paid car and stock options in some cases.
Heathfield, M. S. (2014). Compensation.about.com