Define total compensation and identify the components of a total compensation program. Discuss why it is important for HR professionals to understand legislation, unions, and interindustry wage differentials when establishing total compensation programs. Use the following headings to organize your paper: Introduction, Total Compensation, Conclusion. Remember to use you text book and at least one other source for this paper.
All over the world, employees are at the epicenter of any organization. To remain competitive and stable in a world where new trends and innovations are emerging, organizations have recently focused on retention of trained and experienced staff. However, the issue of payment remains integral in ensuring that the employees are recognized and given pay as per the salary or wage structure dictates. This has led to emergence of payment as a whole unit, what is called total compensation. This paper will discuss the components of total compensation program, its significance for human resource managers and many associated aspects of it.